Entrepreneurship and Small Business Management

This report covers different types of entrepreneurial ventures, their similarities and differences, impact of small businesses on the economy, importance of startups and small businesses, and skills of an entrepreneur compared to a manager. It also includes examples of successful entrepreneurs and their backgrounds. The subject is Entrepreneurship and Small Business Management, and the course code and college/university are not mentioned.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship..................................................................................................3
Explore the differences and similarities of different entrepreneurial ventures......................4
Interpret and assess relevant data explaining how small businesses impact the economy....5
Explain the importance of startups and small businesses to the growth of social economy. .6
Determine the skills an entrepreneur has in comparison to other business managers............8
Assess how aspects of entrepreneurial personality reflect mindset and motivation..............9
Examine using relevant examples how background and experience can hinder or foster
entrepreneurship...................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is an inescapable lively occupation chased by those individuals who are
lucky enough to take risks. These people are positive towards believing in themselves and are
conscious about the upcoming barriers. They are obstinate enough to keep putting efforts and are
brave to take chances again and again. Establishing a business is not about just having an idea, it
is about having ability to question, the capability to believe and spirit to move forward (Hosseini,
2019). This report explains different types of entrepreneurial ventures as well as their similarities
and dissimilarities. What positive impacts small-firms and start-ups have caused on economy of
the UK are also covered. The next section of this report focuses on the difference between an
entrepreneur and a manager. By taking two entrepreneur personalities Peter Johns and Richard
Branson, it has been explained that how their background and experience made them the world
famous personalities.
MAIN BODY
Examine different types of entrepreneurial ventures and explain how they relate to the typology
of entrepreneurship
Different individuals have various innovative ideas of establishing their businesses which
distinguish entrepreneurial ventures in further categories which are discussed below:
Small Businesses
These companies operate on domestic level by those people who want to support their
family. Local bakery, grocery store and beauty salons are some examples.
Large Businesses
These firms target a large customer base and run their franchises on national as well as
international level. Microsoft, Amazon and Google are part of these businesses.
Social Businesses
The main purpose of these organisations is to create solutions that could bring change in
society. These changes might be environmental, human rights or any other problems related to
society (Boudreaux, 2020). Non-profit organisations like Oxfam in UK is an example for the
same.
Scalable Entrepreneurship

Entrepreneur setting businesses with new and advanced ideas comes under this category
of entrepreneurial ventures. Twitter, Facebook and Instagram are some examples.
Typology of Entrepreneurship
Survival Entrepreneur:
People whose main objective is to hold up in market for long time and solve financial
ventures obligations are known as survival entrepreneurs. Small-firms and start-ups might be
viewed as these types of companies.
Lifestyle Entrepreneur:
The main purpose of these business persons is to maintain their expensive lifestyle .
Social media influencers, V-loggers comes under this category of entrepreneurs.
Dynamic Entrepreneur:
Individuals who brings imaginative and innovative ideas in the market to increase
competition are believed to be dynamic entrepreneurs (Igwe and Icha-Ituma, 2020). Business
celebrities like Mark Zuckerberg, Oprah Winfrey are some examples.
Explore the differences and similarities of different entrepreneurial ventures
Different entrepreneurial ventures share some similarities and also have some noticeable
differences which are discussed below:
Basis Small
Entrepreneurship
Large Business
Entrepreneurship
Social
Entrepreneurship
Scalable
Entrepreneurship
Aim This
entrepreneurship
aims at supporting
their families and
their financial
situation. This
limit their scope
and eventually they
remain in market
for short duration.
This
entrepreneurship
aims to extract
maximum profit as
possible so that
they can use this
margin for future
expansion to stay in
marketplace for
long duration
The major aim is
to deliver better
product and
services in society
so that they can
help to improve
standard of living
of people.
The main aim of
these
entrepreneurship is
to maximize their
profit by providing
unique idea.

(Roundy, 2017).
Nature of
employees
They in general
hire people who are
local as they
operate in small
markets.
They hire
employees which
have skills and
talent that the
business need.
They gather
volunteers instead
of paid employees
who are willing to
make positive
changes in society.
They hire skilled
employees and
give training so
that they can help
in earning profit
for organisation.
The similarities are-
 Dedication: This is a feature that is same in almost all businesses and is required for
growth and sustainability. All type of entrepreneurs are dedicated to their
responsibilities and job roles. Seek Outcomes: All entrepreneurs seek outcomes like return of investment,
achievements in social platform etc. according to their nature.
 Face Challenges: All of them also face challenges that are prevailing in market and
build strategies based on assessing these challenges (Shahverdi, Ismail and Qureshi,
2018).
Interpret and assess relevant data explaining how small businesses impact the economy
Small-firms and start-ups have contributed a lot in raising economy of UK. In the
beginning of 2020, there were almost 5.94 million small-firms which is around 99.3% of overall
businesses. The total employment provided by these organisations was approximately 13.3
million and total turnover was estimated to be is around £1.6 trillion. These companies report for
three fifths of employment and in private sector of UK they have around half of turnover (UK
Small Business Statistics, 2021).
There are various reasons these small-firms and start-ups fail even though they contribute
in enhancing the economy of country. It has been observed that 23% of these businesses fail due
to lack of efficient team. Around 17% fail because they are unable to design a good business
model. Almost 19% of them were surpass in competition and approximately 14% ignores
customers which results into their failure (Business Startup Statistics UK (2021 Update), 2021).

Large companies also play a major role in contribution of the country's economy. It has
been observed that 100 large organisations have shared around £84 billion in tax in the year 2017
and 2018. These large firms have employed almost 2 million citizens who each contributed
approximately £12,855 in tax. In value distribution, around 45% are received by government
through taxes by these companies, while workers accepted 30% in pay-off and 25% was diffused
to providers of capital (Large companies contribute 12 per cent of all UK tax, 2018).
Explain the importance of startups and small businesses to the growth of social economy
For economic growth of the UK, it is very important to develop small and medium sized
companies as they assist in contributing in its economy. In the respective country, majorly all the
technology based local shops are operated by SMEs (Omotosho, Gamede and Uleanya, 2020).
Furthermore, the government of UK needs to provide some welfare programs in order to support
all small and medium sized organizations as these schemes will encourage them to open more
businesses in nation. These enterprises are also important for the society as they bring new ideas
and creativity which has power to change aspects of operating businesses such as a company is
offering chemical made cosmetics products while some new start-up might offers organic skin
care products which will eventually shifts the costumers towards natural items. Hence, for
country's economic growth both small-firms and start-ups are important. Here are some reasons
which explains further importance of these organisation which will enhance the development of
economy in UK:
 Create Employment: One of the main reason for the development of small-firms
and start-up is that they create various job opportunities to people who are
unemployed. It has been observed that in the year 2020, the number of these
organisations were approximately 5.94 million which provided employment to
almost 16 million people based on their talents and skills. It has also been predicted
that in upcoming future, these firms will generate more employment in the country
by increasing their number. In recent years, the number of small-firms and start-ups
in UK has raised from six lakhs to almost 9 lakh creating more employment
possibilities for people. It is very important to support these companies for domestic
and social economy as they are helping unemployed individuals in getting jobs and
also enhancing country's employment rate (UK Small Business Statistics, 2021).

 Motivating creativeness: It has been observed that small-firms and start-ups have
the power to give competition to other large firms in the market which encourages
every business to develop creativity and innovations among them. This will
ultimately lead to higher competition as these organisations will come up with new
products or services which will motivate others to develop creativity in their own
company (Ruchkina and et. al., 2017). New innovation in the technology or any
other field by various organisations in the market will enhance economy of the
country. The developed technologies have assist country in uplifting its place in the
world by producing advanced and inventive ideas. Employees of these small-firms
and start-ups remain motivated which helps them to give better and efficient
outcomes that results into more creativity and innovation.
 React quickly to Market change: It has been discovered that small-firms and
start-ups have ability to form and espouse modifications occurred in the market
according its demands. These businesses are mostly customer familiarized and
develop their products or services according to the research they conduct on their
targeted consumer's demands and try to create facilities in order to fulfil their
expectations (Sanguino, Barroso and Gochhait, 2018). Small organisations have the
capability to adopt changes with great flexibility and advanced ideas. Hence,
changes in the marketplace brings economic development by inventing new
technologies or opportunities for market to evolve. As they understand the needs of
their targeted customers, they have high chance of surviving in the market even in
economic downturns.
 Create new market: Small-firms and start-ups have the potential to bring diversity
in market by launching new products or services for the customers which results
into creating new trends in marketplace. The efforts by these businesses to open
new market opportunities help in economic development as new and innovative
products or services assist in attracting large customer base. The capability of these
organisations to enter in new marketplace requires lot of time and research about
the needs of buyers. This also help these firms to improve new skills and knowledge
about their field of interest in business. Entering in new market allows these
companies to produce advanced products which means consumers have broad

variety of goods to select from (Boutillier and Ryckelynck, 2017). Providing
variety of products to their buyers will create competition in prices which will help
in economic development as company will generate more revenues. Entrepreneurs
are determining new market opportunities for establishing businesses that could
open new marketplace.
 Enhance GDP: Small-firms and start-ups manufacture large number of products or
services in the country which results into rise in GDP of country. These
organisations approximately 25% of overall GDP of UK. The collective annual
turnover of small-firms and start-ups was almost £2.0 trillion which is around 52%
of all private sector turnover. This represents the major contribution of these
companies in UK and how they are benefiting the country in economic
development. The utilization of new technologies by these firms helps in improving
the image of country in the world. They play important role in uplifting the GDP of
UK as they provide large number of employment to the people which increases
employment rate of country. These firms help in decreasing poverty by improving
employment ratio of nation which will eventually assist in better GDP ratio (5
Reasons why UK Small Business are vital for the UK economy, 2018).
 Support local communities: Small-firms and start-ups operate their businesses on
domestic level which makes them close to local communities. Small restaurants or
coffee shops allow local people a place to socialise themselves with each other
while dress shops and other small stores provide citizens simple access to necessary
commodities. They also provide job opportunities to local individuals which
eventually increases employment. The development of domestic areas helps in
improving the image of the country because these organisations are more ethical
and close to their culture which motivates them to. This loyalty and commitment of
these small-firms and start-ups towards their country assist them to improve its
economy as they pay taxes which government utilizes to develop nation more in
comparison to other countries in world (Ram, Jones and Villares-Varela, 2017).
These companies bring better financial conditions, growth and innovation to outside
regions of main cities which allow the equal dispersion of income and wealth.

Determine the skills an entrepreneur has in comparison to other business managers
An entrepreneur and a manager have different set of skills, traits and characteristics
which are listed below:
Skills:
 Creativity: Entrepreneur possess creativity in all their work whereas managers may lack
it because they are supposed to work in a specific and decided manner. Risk taking: An entrepreneur look for alternatives that may increase the chance of
earning profit even by taking risks whereas mangers are hired to take decision within an
organization that lead to its stability (Boudreaux, 2020).
Characteristics:
 Visionary: Entrepreneurs are future-oriented and have visions that are useful for business
growth. On the other hand, managers are committed to do their daily tasks. Motivation: The primary motivation for an entrepreneur is achievement while for a
manager motivation lies in power and authority that the person gets by the position in an
organization.
Traits:
 Focus: An entrepreneur focuses on expanding business ideas whereas a manager helps
in smooth functioning of daily activity in an organization.
 Decision making: An entrepreneur’s decision is intuitive as they are instinct based and
give priority to inner voice and but a manager consider a lot of things which include
financial constraints or employee network etc. making its decision calculative.
 Management style: For an entrepreneur, it is generally a one man show as he take
managing decisions independently whereas a manager takes it as a team work but in both
cases they try to take productive decision (Roundy, 2017).
Assess how aspects of entrepreneurial personality reflect mindset and motivation
Various aspects of external and internal environmental factors shape personality of
someone which makes them motivated and unique entrepreneur from others. The Five-Factor
Model or OCEAN model is utilize to evaluate personality traits of an individual. The five
components are:

(Source: The Big Five or The Five-Factor model of personality, 2018.)
Openness:
This element shows the intelligence features of a person who is eager to implement new
originated and advanced thoughts in the business. Peter Jones has this characteristic in himself as
he is always open to new ideas from people around him (Shahverdi, Ismail and Qureshi, 2018).
Consciousness:
This element describes characteristics that an individual possess such as durability,
aspiration, dependability, hard-working and thinking. Richard Branson has all these features in
himself as he was dedicated and ambitious from childhood to achieve his dream of becoming a
business person.
Extraversion:
This factor describes individual who grasps energy from others is social and outgoing.
These type of people enjoy being in social gatherings and have full energy to participate.
Agreeableness:
People who are humble, patient, loyal, polite and kind represents this feature. This people
mix-up easily with everyone around them.
Neuroticism:
Illustration 1: The Big Five or The Five-Factor model of
personality, 2018.

This element involves personalities who has characteristics such as clumsiness, decency,
envy, self-criticism, anxiety and unstableness.
Examine using relevant examples how background and experience can hinder or foster
entrepreneurship
Peter Jones
Background:
Peter Jones was born on 18th March 1996 in Berkshire, England. Despite of financial
constraints, his parents wanted to provide him best education and sent him to a private school
which he left at the age of eight and spent rest of his school years in state schools. By 21, he got
married and has his own house which he has to sell in miserable times and at present, he lives in
Beacons field with his second wife and their three children and two children from previous wife
(ABOUT PETER JONES, 2021).
Experience:
In the starting of his career, he earned money from his two main passions that were tennis
and business as he himself is a good tennis player. He always wanted to be a businessman and
tried various ventures which include manufacturing PC's, cocktail bar which eventually undergo
a series of losses. But this did not let him to stop, he took failure as an opportunity and again
started working at Siemens Nixdorf, a computer company and when financial situation became
stable he founded telecom business in 1998 which boom in just two years. In the first year
'Phones International Group' gain a margin of 14 million pounds which shoot up to 44 million in
next year and eventually became 13th fastest growing company according to Sunday Times. He
also runs an academy called 'Peter Jones Enterprise Academy' where he moulds young minds
according to current business needs. In 2005, he became famous TV star by participating in a
show called 'Dragons Den' and did many more till date. At present Jones is the owner of many
businesses and making profit of around 250 million pounds by investing in around 20 companies
(ABOUT PETER JONES, 2021).
Richard Branson
Background:
Richard Branson also known Richard Charles Nicholas Branson born in 1950 at Surrey,
England. In his childhood he suffered from dyslexia and couldn't continue his study and dropped
out from school for doing something extraordinary at the age of 16. He established 'Student'

magazine for students and got success as well as a lot of profit. Branson is married to his second
wife, Joan Templeman and has two lovely children, Holly and Sam. They are currently residing
in Necker Island in British Virgin Islands (Richard Branson, 2021).
Experience:
Branson, a school dropout indulged himself in his first business venture as a teenager
with a magazine named 'Student' which after giving success and fame went to loss in late 1960's.
With his keen desire to be a successful businessmen in spite of failure he formed a business
called Virgin Mail Order Records to raise funds and eventually forms his first British Record
Store with the help he got help from Virgin Records. In 1984 he became the backer of Virgin
Airlines which he sold to raise funds for Virgin Atlantic and in 2004 he shifted his interest to
space tourism and formed Virgin Galactic Company. His dedication and handwork helps him to
expand his business across globe and also in various categories including space tourism in 2013,
voyages in 2017 and hotels in 2010 and lastly company planned to maintain status in hotels
before embarking on renovation in 2019.Branson is also known for his adventurous spirit, sports
love and achievements like crossing ocean in a hot air balloon (Richard Branson, 2021).
From the above two examples of entrepreneurs, we can learn that by taking failures as an
opportunity to success, we can acquire whatever we want to achieve through dedication.
CONCLUSION
From the above report, it could be concluded that an establishing a business comes with
various risks and rewards. The various types of ventures have different aims and strategies to run
their business. Different individuals have discrete reasons to become an entrepreneur which
makes them different from each other. It has also been observed that small-firms and start-ups
have majorly contributed in the economy of UK by creating more employment. To become an
entrepreneur is not an easy task, a person needs to have some characteristics in order to become a
successful business person. From the examples taken in this report, it can be seen that if an
individual wants to become an entrepreneur and is ambitious enough to complete it then nothing
could stop them in achieving success.

REFERENCES
Books and Journals
Boudreaux, C. J., 2020. Ethnic diversity and small business venturing. Small Business
Economics, 54(1), pp.25-41.
Boutillier, S. and Ryckelynck, P., 2017. Sustainable-entrepreneurs: quantifying opportunities and
social networks, case study on sustainable entrepreneurs in a heavy industrial
area. International Journal of Entrepreneurship and Small Business, 31(1), pp.85-102.
Hosseini, R., 2019. Role of the Entrepreneurship in the Development of Industry. Journal of
Contemporary Research in Business, Economics and Finance, 1(1), pp.1-11.
Igwe, P. A. and Icha-Ituma, A., 2020. A review of ten years of African entrepreneurship
research. Research Handbook on Entrepreneurship in Emerging Economies.
Omotosho, A. O., Gamede, B. T. and Uleanya, C., 2020. Effect of entrepreneurship education on
entrepreneurial intentions of rural-based university students in South Africa. African
Journal of Development Studies (formerly AFFRIKA Journal of Politics, Economics and
Society), 10(2), pp.83-104.
Ram, M., Jones, T. and Villares-Varela, M., 2017. Migrant entrepreneurship: Reflections on
research and practice. International Small Business Journal, 35(1), pp.3-18.
Roundy, P. T., 2017. Social entrepreneurship and entrepreneurial ecosystems: Complementary or
disjoint phenomena?. International Journal of Social Economics.
Ruchkina, G. and et. al., 2017. Small and medium enterprises in the context of regional
development and innovations. Journal of International Studies, 10(4).
Sanguino, R., Barroso, A. and Gochhait, S., 2018. Entrepreneurship in family firms in developed
and developing countries. In Entrepreneurship and Structural Change in Dynamic
Territories (pp. 91-108). Springer, Cham.
Shahverdi, M., Ismail, K. and Qureshi, M., 2018. The effect of perceived barriers on social
entrepreneurship intention in Malaysian universities: The moderating role of
education. Management Science Letters, 8(5), pp.341-352.
Online
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Richard Branson. 2021. [Online] Available through: <https://www.biography.com/business-
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