Entrepreneurship and Small Business Management: Types of Entrepreneurship, Impact on Economy and Social Economy

This report discusses the definition and scope of entrepreneurship, typologies of entrepreneurship, differences between serial entrepreneurs, intrapreneurs and owner managers, and description of micro, small and medium sized organisations along with growth of social economy. It also includes assessment of the impact of small businesses on the economy and their importance. Further it describes international aspects of entrepreneurship and impacts of their differences on start-up. The report also examines the key aspects regarding entrepreneurial mindset and research on personal traits of small business owners.

Entrepreneurship and Small Business
Management
Table of Contents
INTRODUCTION............................................................................................................................................................................................................................. 2
PART 1........................................................................................................................................................................................................................................... 2
Brochure.................................................................................................................................................................................................................................... 2
PART 2........................................................................................................................................................................................................................................... 6
REFERENCES................................................................................................................................................................................................................................ 13

INTRODUCTION
In this project, definition and scope of entrepreneurship is discussed along with entrepreneurial activities and enterprise. This report further
explains the differences between serial entrepreneurs, intrapreneurs and owner managers. It also consists description of micro, small and
medium sized organisations along with growth of social economy.
PART 1
Brochure

In this project, definition and scope of entrepreneurship is
discussed along with entrepreneurial activities and enterprise.
This report further explains the differences between serial
entrepreneurs, intrapreneurs and owner managers. It also
consists description of micro, small and medium sized
organisations along with growth of social economy. This
report includes assessment of the impact of small businesses
on the economy and their importance. Further it describes
international aspects of entrepreneurship and impacts of their
differences on start-up.
Typologies of entrepreneurship
Male Entrepreneur: These entrepreneurs are tend to possess strong
creative skills and ability to bear risks in order to initiate an
enterprise (Byrne, Fattoum and Diaz Garcia, 2019). They have
more knowledge about how business environment works and what
are the risk factors associated with it. Male entrepreneurs are more
capable of handling burden and difficulties involved in a business
venture.
Female Entrepreneur: Female entrepreneurs are ambitious for their
success and growth of their business venture. They possess
influential and persuasive personality which helps them to succeed
in their plans. They also are more likely to tolerate risks involved
in a business venture.
Survival Entrepreneur: These kinds of entrepreneurs are not likely
to have potential required for generating high profits. Their main
motive is to survive and earn minimum income level that is
required for sustenance of business. They do not seek high levels
of growth and expansion in their business experience.
Lifestyle Entrepreneur: These types of entrepreneurs engage in
business projects to change their lifestyle. They are not solely
focused on earning profits, instead they plan start-ups for the
purpose of brining changes in their normal lifestyle (Cao and Shi,
2021).
Serial Entrepreneur: Serial entrepreneurs are those who are highly
determined and focused on development of various businesses for
the purpose of growth and development. They are likely to
delegate or even sell their previous venture after seeking growth
and develop another start up.
Small Business Entrepreneurship: Small business entrepreneurs
mainly focuses on start-up including a single product or
emphasizing on a single market. The intentions of the small
entrepreneurs does not involve expansion of the company,
instead it mainly focus on earning profits. Small scale
enterprises are easy to form and manage.
Large Company Entrepreneurship: These kind of enterprises
involves huge funds and investment to start the business and
involves large functional areas to work upon. Large scale
enterprise are difficult to form as it involve lengthy procedures
(Bhawe and Zahra, 2019). Operational activities are more along
with the requirement of more employees.
Scalable Start-Up Entrepreneurship: The main aim is to achieve
major growth and become a huge profitable enterprise but only
has started. It involves requirement of external capital and risk
bearing capacity to expand magnitude of dimensions.
Social Entrepreneurship: It refers to the enterprises created and
funded by individuals for the purpose of fulfilment of social
and cultural aspects as well as needs of the society.
Entrepreneurship and Small Business Management
Introduction
Types of entrepreneurial ventures and typology
Entrepreneurship is the process of formation and development
of a new enterprise along with risk bearing factor for the
purpose of earning profits. An entrepreneur can be defined as
who owns and manages a business entity, ready to take
initiatives and risks involved in the business in order to
generate profits. Following are some common types of
entrepreneurship as well as entrepreneurs:

Entrepreneurial activity is the functions performed by an entrepreneur through expanding business dimensions by
exploring new opportunities. There are various types of entrepreneurs as discussed above including serial
entrepreneurs, intrapreneurs and owner managers. A Serial entrepreneur focus on developing multiple business
ventures one after another. While intrapreneurs are those employees working in a company who are engaged in
developing a unique idea or project. The main motive of intrapreneur is to bring innovation to an existing business
while an entrepreneur initiates and develop a new business (Carbonara, Tran and Santarelli, 2021). As of owner
managers, they are manager of a business who assists in working of business created by an entrepreneur.
Differences and similarities of different entrepreneurial ventures
Differences
Small business entrepreneurship Large company entrepreneurship Scalable start-up entrepreneurship
• It is easy to form and
dissolve as no lengthy
procedures are involved.
• The owner of the business
is an individual.
• These businesses are
usually wholly managed by
the sole proprietor.
• It requires less funds and
external capital to perform
business operations.
• Large companies are
difficult to create and
dissolve as it requires
complex legal procedures.
• These kinds of businesses
have more employees and
more than one owner.
• Management is complex
and involve hierarchical
structure.
• Huge funds and external
capital is required.
• Scalable start-ups can be
easy to formulate but as
they expand it involves
various steps for their
closure.
• These start-ups can have
more than one owner.
• Initially management is
simple but with expansion
they seek proper
management of operations.
• Moderate amount of funds
is needed as these start-ups
seeks growth and
expansion.
Similarities
• Growth and Development Opportunities: The major similarity among
all entrepreneurial ventures is that a business environment offers great
opportunities for expansion and experience to grow in dynamic
surroundings (Dencker and et.al., 2021). Engaging in business
activities enhance the entrepreneurial skills as well as interpersonal
skills of an individual.
• Risk Factors: No matter how big or small an organisational structure
there are always some risk factors associated with a business venture.
A business must assess this risk factors in order to widen the scope of
development of a business idea.
• Purpose of Earning Profits: The main motive of every entrepreneur is
to maximise their profitability margins and wealth of their
organisation in the long run (Ebrahimi and et.al., 2019). No business
is formulated only for the purpose of sustenance, a business is
developed to fulfil the objective of money making and generating
high revenues.

Impact of micro and small business on the economy
Small and medium-sized enterprises popularly known as SMEs serve as a significant growth
factor in economy through major contribution in employment scenario. Small-scale enterprises
contribute a major amount in output generation. According to a report of 2015, there was
requirement of around 600 million jobs for the next 15 years (Filion, 2021). Apparently, SMEs
facilitate generation of employment opportunities allowing individuals to utilise their skills
and talents.Small-scale and medium-sized enterprises are generally classified by the number of
employees working along with turnover of sales and the capital invested. Criteria for
classification of these enterprises varies with different countries. In UK, companies having less
than £5.6 million annual turnover is categorised as a SMEs and in terms of employees, the
maximum limit is 50 for small-scale businesses. An organisation is classified as a micro
business if it employs less than six people. The impact of these businesses on economy can be
understood by the following points:
Employment generation: small-scale enterprises are majorly responsible in creation of
employment opportunities providing scope for growth to struggling individuals (Firkin, 2018).
Although sometimes this employment turns out to be temporary as SMEs sometimes wind-up
before completing tenure of five years.
Development of various sectors: the growth of small-scale enterprises results in development
of different sectors including manufacturing and agriculture sectors which contribute in GDP
rate. It also boosts the expansion of IT sectors which is crucial for overall economic
development.
International growth: internationally active small-scale businesses are more likely to bring
innovation and creativity than focusing wholly on domestic market. Currently, only one in five
SMEs are exporters but it is estimated that 12% of non-exporting firms within UK could
become exporters.
The significance and importance of small-scale enterprises are measured in terms of
employment and development of UK economy (Lee and Kelly, 2019). Small-scale industries
contribute 99.5% of the businesses in every major sector. Small businesses are engaged in
beauty and wellness sector as well as professional services of finance and consulting. Small-
scale industry is a major determinant to measure industrial growth and development in
manufacturing sector. About 16% of all SMEs are involved in construction activities and less
than 1% in mining sector. 15% contributes in professional, scientific and technical activities
and 10% are engaged in wholesale and retail industries. 34% of UK population deals in private
sector businesses
Based on above data, small-scale industries have shown remarkable growth in recent years
showing development of different sectors. Private sector based small-scale industries are
flourishing and providing employment opportunities and job experience (Liguori, Bendickson
and McDowell, 2018). Also, small-scale industries are excelling in the field of technology
advancement and scientific activities indicating expansion of sectors for these types of
enterprises.
The importance of small businesses and business start-ups to the growth of the social
economy
Social economy deals with the determinants and aspects of society which business need to fulfil in
order to maintain their position in the society. Small businesses are considered as backbone of an
economy which has immense contribution in the growth and development of UK social economy
(Marques and et.al., 2019). Additionally, it also enhances social economy by fulfilling social aspects of
the society. Following are the points to support this statement.
Providing people with products and services: Small-Scale Enterprises serves as a convenient option to
satisfy the needs of consumers. They are easily available in residential areas where customers find it
convenient to purchase goods. Many small-scale businesses provide the services of home delivery of
products and services. These enterprises are a major source in fulfilling wants and desires of
consumers. Hence it complies with the aspect of satisfying society by serving their needs and
requirements.
Employment opportunities for skilled and unskilled individuals: small-scale industries play major role
in creation of job opportunities for both skilled as well as unskilled people (Messeghem and et.al.,
2018). It further helps in improving social aspects like enhancement of income level, reduction in
poverty and development of family backgrounds as well as improvement in lifestyles of people.
Rural development: Small-Scale enterprises promote rural development by fulfilment of job
requirements in rural areas. It allows individuals to develop their employment skills as well as
interpersonal skills. This helps in enhancing lifestyles and productivity as well as efficiency of people
of rural areas. By providing employment opportunities, small-scale enterprises help in reduction of
poverty and improves lifestyles of people. It also enhances their purchasing power and thus helps in
raising economic levels of the country. Small-scale industries promote value addition in gross domestic
product and helps in increasing wealth of a country. The development of small-scale industries
improves lifestyle of people by enhancing entrepreneurial skills and improves their social status.
Employment opportunities increase their income level as well as their purchasing power. Small-scale
industries improve economic status of small entrepreneurs which in turn improves their social status.
The impact of small-scale industries on economy is reflected in both improvement of social as well as
economic status of people. Growth of small-scale industries fulfil economic as well social aspects of
society. Small scale entrepreneurship give rise to major industrial development which contributes in
References
Carbonara, E., Tran, H. T. and Santarelli, E., 2020. Determinants of novice, portfolio, and serial
entrepreneurship: an occupational choice approach. Small Business Economics, 55(1), pp.123-151.
Dencker, J. C. and et.al., 2021. Reconceptualizing necessity entrepreneurship: A contextualized
framework of entrepreneurial processes under the condition of basic needs. Academy of Management
Review, 46(1), pp.60-79.
Ebrahimi, P. and et.al., 2019. CRM performance and development of media entrepreneurship in digital,
social media and mobile commerce. International Journal of Emerging Markets.

PART 2
This involves assessment of key aspects regarding entrepreneurial mindset and research on personal traits of small business owners (Bates,
Bradford, and Seamans, 2018).

In order to become a successful entrepreneur, there are some attributes and skills that needs to be adopted and developed by an individual. These
qualities are sometimes inherited and sometimes developed in the course of time with background and experiences (Padilla-Angulo, 2019).
Traits and skills of entrepreneurs are explained and examined below in detail with examples of two successful businessman i.e. Mark Zuckerberg
and Bill Gates.
Hard-Work and Patience: hard-work and patience is the key to attain success in any field. The sparkling career of entrepreneurs like bill gates
and mark Zuckerberg shows they have worked hard constantly throughout their journey. An entrepreneur must adopt resilience as a business
idea takes time to evolve and yield gains. Initially these entrepreneurs believed in their ideas and inventions to turn them into successful mission.
Finance skills: every entrepreneur must possess basic financial skills in order to manage their funds. Procuring funds and organising them as well
utilising them in optimum ways is very important for an entrepreneur to grow. Bill gates and mark Zuckerberg have strong financial skills which
helped them in their success. Optimum utilisation of funds is necessary for money making.

Strong Communication and networking: in order to become a successful entrepreneur, one must know how to communicate their ideas and
opinions strongly and confidently to their employees and most importantly to the audience. Strong communicative skills ensure wide networking
which is crucial to attain success (Rashad, 2018). Both of these entrepreneurs have high persuasive personality and good communicative skills
Innovative Thinking: innovation is the key to differentiate a business idea from other competitors. Mark Zuckerberg and bill gates possess high
innovative skills which allowed them to introduce completely unique and brilliant inventions. To convey your ideas differently from others and
design something distinctive that grabs audience attention, an entrepreneur must be creative and innovative minded.
Focus: an entrepreneur must be focused on his goals and aims and willing to work in his areas of scope and success. These entrepreneurs seek
focus in their work and are highly determined to achieve their business as well as personal goals. Focus and determination is one of the most
significant factor that makes these entrepreneurs successful and influential personalities globally.
Ability to Adapt: An entrepreneur must be flexible and develop the ability to adapt in order to deal with changes that keeps happening in
business environment. These entrepreneurs practice flexibility and prepares themselves for anticipates changes by making plans and strategies as
precautionary measures (Salavou, Chalkos and Lioukas, 2021).
Risk bearing capability: The idea of entrepreneurship come along with risk bearing factor. The more success a businessman seeks the more risk
he has to bear. An entrepreneur must be ready to take risks in order to grow and expand his business plan. Entrepreneurs like Zuckerberg and
gates have high risk tolerance capacity which allowed them to become successful.

There are various skills and qualities along with the above-mentioned traits that famous entrepreneurs like mark Zuckerberg and Bill Gates have
which made them one of the most successful persons
Entrepreneurship is a skill which is endowed in some individuals by birth and some entrepreneurs develop these skills with time and experience.
An individual's mindset defines their thinking and how they apply their mentality in entrepreneurial activities. The mindset of entrepreneurs
should be unique enhancing creativity, commitment and high self-motivation. Often, the success of a business depends on perception and
thinking patterns of an entrepreneur. Openness: This trait denotes dynamic personality and high level of curiosity. Openness indicates an
entrepreneur's wide range of interests and activities they want to know about. If an entrepreneur possesses this trait, he is likely to have high
energy and acceptance of new experiences and insights (Thies and et.al., 2019). Mark Zuckerberg owns openness to experiences and innovation
during his entrepreneurial journey which helps him in exploring new ideas and developed the scope of his learning.
Conscientiousness: This trait implies high level of thoughtfulness and great observation as well as organisation skills. If an entrepreneur has this
trait, they tend to remain focused and goal-oriented and they implement thorough planning in business management. Bill gates is considered as
example of a highly conscientious people as he is majorly focused on his goals and implement proper planning in their working to assure
continuous flow of productivity as well as efficiency.

Extraversion: individuals having this trait are likely to assert their opinions on other people. They strongly support their ideas and are very
talkative as well as expressive in nature. These types of entrepreneurs get more confident and exited in social scenarios and strongly
communicate their ideas in front of audience (Bates, Bradford, and Seamans, 2018). This trait is helpful in entrepreneurship as extravert
entrepreneurs are capable of encouraging motivation among employees and maintain high energy in their working culture.
Agreeableness: this trait is highly appreciated and one of the best attitude which helps in both professional as well as personal lives.
Entrepreneurs possessing this trait have affirmative and positive attitude which allows them to motivate their employees towards better working.
This characteristic implies cooperative attitude and helps entrepreneurs to deal with issues and face challenges in the calmest manner. Mark
Zuckerberg and Bill Gates possess this trait which helped them in their success journey as they handled difficulties and dealt with them in most
optimistic and affirmative manner.
Neuroticism: These entrepreneurs are emotionally challenged and usually unstable dealing with constant mood swings. This attitude is not
suitable for an entrepreneur as this implies negativity and difficulty in handling chaos situations which often occurs in business environment
(Byrne, Fattoum and Diaz Garcia, 2019). Also, entrepreneurs having neurotic attitude are not capable of promoting motivation as they often deal
with anxiety and insipidity.

The success of an entrepreneur depends on numerous factors including their personal background and various experiences throughout life. With
the relevant examples of renowned entrepreneurs like Mark Zuckerberg and Bill Gates, these factors are elaborated in detail.
Mark Zuckerberg
Background:
He learned Atari BASIC Programming in 1990s from his father and later his father got him a private tutor for the purpose of knowledge in
software development. The first software program that he built was ZuckNet at the age of 12. Strong background and family support allowed
him to follow his interest and seek growth in programming.
Experience:
These faced shutdowns after gaining wide recognition. Later, mark created a social networking site along with his friends (Cao and Shi, 2021).
The site became official by the name of Facebook in June 2004. This website became wildly popular and gained million users by the year end.
Today he is one of the richest entrepreneur and CEO of Facebook. Throughout this journey, mark has faced various challenges and controversies
and his life experiences allowed him to resolve issues and maintain his entrepreneurial status.

Bill Gates
Background:
Bill attended Harvard university and during his sophomore year adapted BASIC, a famous programming language. Gates background helped
him in recognising his true passion and how to develop it for success.
Experience:
The two started facing some issues which gave rise to the creation of IBM. Later on, Microsoft and IBM signed a contract and Microsoft turned
into Microsoft corporation within a year. Today, he is one of the most successful and influential personality in the world (Dencker and et.al.,
2021). His life experiences helped him in developing Microsoft and overcoming the challenges he faced.

REFERENCES
Books and Journals
Bates, T., Bradford, W. D. and Seamans, R., 2018. Minority entrepreneurship in twenty-first century America. Small Business Economics, 50(3), pp.415-427.
Bhawe, N. and Zahra, S. A., 2019. Inducing heterogeneity in local entrepreneurial ecosystems: The role of MNEs. Small Business Economics, 52(2), pp.437-
454.
Byrne, J., Fattoum, S. and Diaz Garcia, M. C., 2019. Role models and women entrepreneurs: Entrepreneurial superwoman has her say. Journal of Small
Business Management, 57(1), pp.154-184.
Cao, Z. and Shi, X., 2021. A systematic literature review of entrepreneurial ecosystems in advanced and emerging economies. Small Business
Economics, 57(1), pp.75-110.
Carbonara, E., Tran, H. T. and Santarelli, E., 2020. Determinants of novice, portfolio, and serial entrepreneurship: an occupational choice approach. Small
Business Economics, 55(1), pp.123-151
Filion, L. J., 2021. Defining the entrepreneur. In World encyclopedia of entrepreneurship. Edward Elgar Publishing.
Firkin, P., 2018. Entrepreneurial capital. In Entrepreneurship: New perspectives in a global age (pp. 57-75). Routledge.
Lee, B. and Kelly, L., 2019. Cultural leadership ideals and social entrepreneurship: an international study. Journal of Social Entrepreneurship, 10(1), pp.108-
128.
Liguori, E. W., Bendickson, J. S. and McDowell, W. C., 2018. Revisiting entrepreneurial intentions: a social cognitive career theory approach. International
Entrepreneurship and Management Journal, 14(1), pp.67-78.
Marques, C. S. and et.al., 2019. Effects of traits, self-motivation and managerial skills on nursing intrapreneurship. International Entrepreneurship and
Management Journal, 15(3), pp.733-748.
Messeghem, K. and et.al., 2018. Measuring nonprofit incubator performance: Toward an adapted balanced scorecard approach. Journal of Small Business
Management, 56(4), pp.658-680.
Padilla-Angulo, L., 2019. Student associations and entrepreneurial intentions. Studies in Higher Education, 44(1), pp.45-58.
Rashad, N. M., 2018. The impact of entrepreneurial marketing dimensions on the organizational performance within Saudi SMEs. Eurasian Journal of
Business and Management, 6(3), pp.61-71.
Salavou, H. E., Chalkos, G. and Lioukas, S., 2021. Linkages between entrepreneurial intentions and entrepreneurship education: New evidence on the
gender imbalance. Education+ Training.
Thies, F. and et.al., 2019. Following the crowd—does crowdfunding affect venture capitalists’ selection of entrepreneurial ventures?. Journal of Small
Business Management, 57(4), pp.1378-1398.