Entrepreneurship and Small Business Management

This report discusses the various forms of entrepreneurial ventures, the impact of small businesses on the economy, and the skills of an entrepreneur in comparison to other business managers. It also reflects on the personality traits and motivation of entrepreneurs. The subject is Entrepreneurship and Small Business Management, and the course code and college/university are not mentioned.

Entrepreneurship and
Small Business
Management
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Definition and different types of entrepreneurship's with its typologies................................3
Differences & similarities between different entrepreneurial ventures..................................5
Interpretation and assessment of data explaining the impact of small businesses upon
economy.................................................................................................................................6
Explaining the importance of start-ups & small businesses for the growth of social economy. 7
Determining the skills of an entrepreneur in comparison to other business managers..........9
Skills.......................................................................................................................................9
Illustrate about entrepreneurial personality reflect about entrepreneurial motivation. .......10
Discuss background and experience can hinder or foster of entrepreneurship. ...............11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
The term entrepreneurship refers to a procedure of planning, structuring as well as
launching of a new business idea. It comprises of the monetary risk related to the specific
business & the idea of developing a new enterprise as well as the real process of commencing a
new company. The present report pays emphasis to determine the various forms of
entrepreneurial ventures & its relation with its typologies. The comparison between the
intrapreneurs, entrepreneurs as well as the owners managers would also be evaluated in the
report (Akpan and Ibidunni, 2021). The effect of small and medium enterprise as well as the
micro business is also analysed in report. Lastly, the report pays its emphasis upon different
traits, characteristics as well as the skills of an entrepreneur. The two big entrepreneurs which are
mentioned in this report are Oprah Winfrey and Bill Gates.
MAIN BODY
Definition and different types of entrepreneurship's with its typologies
Definition of entrepreneurship
The concept of entrepreneurship is concerned with a development and establishment of a
business with new idea carrying an aim of generating higher profits.
Entrepreneurs are those persons who are held responsible for development of a new business
enterprise in consideration of some money.
Different types of entrepreneurs
 Small entrepreneurship: Small business firms are generally funded by family members,
friends, their personal savings or small enterprise loans. Examples like grocery stores,
carpenters, travel agents, store fronts or others. The notion for their success is to have
enough profit. Such entrepreneurs do not wants to take high share in industry as they are
just profitable (Biswas and Verma, 2021).
 Large company entrepreneurship's: Large enterprises offers latest items or services
based on to the consumers preferences, legislation, new competitors, etc. who launches
different variants in their main offerings.
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 Social entrepreneurship: There are hybrid or non-profit form of enterprises. Their main
emphasis is on development of new items or services based on to the identification of
societal needs or problems.
Typology of entrepreneurship's
In the area of entrepreneurship, the concept of typology mentions the classification of
entrepreneurship. The below mentioned are the four typologies of entrepreneurs: Innovative entrepreneurs: This forms of entrepreneurs are those who invents new
thoughts, methods, products, or even sometimes the process. These comprises of those
leaders who discovers markets by their own. Those individuals are categorized as a risk
takers & contributes to the nation's development from the economic perspective. Imitating entrepreneurs: It comprises of those entrepreneurs who quickly copies the new
inventions which are being made by others. They can easily look into such areas where
there the resources are not available in full capacity due to which the new invention is not
possible (Escobar and et. al., 2021).
Differences between a small business and entrepreneur ventures
Basis of Difference Small Business Entrepreneurship venture
Meaning Such type of business is solely
owned or controlled by a
person or by a small group of
individuals.
Exploiting or recognizing a
new entrepreneurial scope
within the market.
Objective The sole objective of
establishing such type of
business is to earn profits only.
The main objective is to create
or develop a new & innovative
item or service.
Risk bearing capacity Moderate or very low risk
takers.
High risk takers as they brings
new idea which carries a threat
of non acceptance in market
(Fard, Kabaranzad Ghadim
and Haghighat Monfared,
2021).
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Differences & similarities between different entrepreneurial ventures
Similarities
Basis Small business Large business Social enterprise
Satisfying needs Satisfies the
requirements of local
consumers only.
Satisfies the customers
needs at large level say
at national or
international level.
Provides support to the
regional customers so
to satisfy their social
issue needs or
demands.
Social development The local people's
livelihood's is
developed through
providing small scale
jobs.
These provides the job
opportunities to the
people as well as
innovative products
which can satisfy their
needs for living life
properly and
comfortably. Provides
employment
opportunity along with
serving innovative
products to satisfy
their essential needs.
They identifies the
social issue and
provides solution in a
way that up-lifts the
society through
addressing such
problem.
Differences
Basis Small business Large company Social
entrepreneurship
Scale These operates at small
level as these are those
business who are having
less funds.
They have large amount of
funds with them so are
able to make their scale of
operations at large level.
Operates at regional
level to solve the
local societal issue.
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Purpose The main purpose is to
earn their livelihood with
profits.
The main purpose is to
generate higher revenues
from their innovative &
creative thoughts (Hauge,
Rantala and Holopainen,
2021).
To up-lift the living
standards through
addressing social
problems.
Interpretation and assessment of data explaining the impact of small businesses upon economy
The impact of small businesses on the economy of a nation is mentioned below: Local impact: Micro & small business ventures directly impact upon the regional
economy through providing their goods & services directly to the local people to satisfy
their needs. These type of companies are established after evaluating the demands &
needs of the audiences. By this analysis, companies can identify the purchasing power of
their customers so to provide their services according to their needs. They also furnishes
various job opportunity to individuals which enhances their living standard as well as
lifestyle which would support people in the upliftment of local economy (Jo and Jang,
2021).
 National impact: Small businesses creates an impact upon the economy at country level
as they carry large funds for their operations. They also focuses upon innovative ideas to
develop the profitability as well as productivity of the business. This high profit would
help the nation in developing the government's treasury. More than 15.7million audience
are placed with jobs by the small and medium enterprises in the UK that is also a
favourable impact for the development of UK economy.
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(Source: The Role of Start-ups and Small Businesses in Today’s Economy, 2018)
Explaining the importance of start-ups & small businesses for the growth of social economy
The gross domestic product of a country brings high growth & development by having a
participation from small businesses as well as from new start-ups. Such small ventures gives rise
to employment opportunities & higher revenues that brings positive impact upon growth of
country's gross domestic product. In United Kingdom, there is a huge number of small
enterprises that creates an effect more to the economic growth. Due to this, the UK government
also furnishes a proper assistance to the such small businesses in context of fulfilling their
financial needs along with providing high relaxation within the registration procedure. Below
mentioned are the some points that mentions the significance of small businesses in economic
growth:
 Creation of a Job: New start-ups & small enterprises brings huge amount of employment
opportunities as to have sufficient need of workforce that directly or indirectly supports
local audience of a country in maximizing their living standards. Other than this,
furnishing high quality of products at cheaper prices enhances the competition in the
market that results in the development of country people (Jones, 2021).
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Illustration 1: Role of Start-ups and Small Businesses

The overall employment growth within the small-scale start-ups is approximately to 1.8
per cent of the whole economy. Small enterprises plays an important role in addressing the
development issues within the local society as they acts as the driver of regional growth. Small
enterprises contributes to the local economies through creating innovation & growth to the local
society. Such enterprises triggers the growth of economy as well as the social growth also. This
assists to the newcomers to attain proper field knowledge & the experience, hence by enhancing
their options of acquiring good job in the future. Large enterprises generally works with small
businesses in order to attain their consignments objectives by the procedure of outsourcing. Enhancing the living standard: Small businesses & start-ups provides high participation
towards the development of living standards of common audience by fulfilling their
needs & requirements in their pocket friendly budget. Providing them this opportunity to
earn revenues for their personal livelihood assists them in up-grading their living
standards.
 Economic growth: Small business & start-ups gives rise to high revenue generation each
year by serving high quality of goods & services to the consumers at cheaper prices. This
would make them able to pay their taxes to the competent authority that results in
enhancing the monetary health of a country. These develops encouragement to other
businesses in order to commence their own enterprise in order to earn higher profits that
results in developing the economic growth of the nation (Kremin, Makoveev and
Mukhametova, 2020).
The small & medium enterprises are highly capable in the situation of economic crisis as
their operational scale is not too large, thereby the losses are not as big as that of large-scale
businesses. Hence, these firms strictly fires their staff at the time of recession or when they do
not meet company's standards. Small enterprises do not always stays small as with the passage of
time their scope of operation also grows. They are generally headquartered at the region in which
they commenced their operations. This assists in the enhancement of that locality by offering
jobs for the regional as well as stimulating the local economy.
 National development: In the era of 1980s, the UK government has recognized the
capabilities of small and medium enterprises in minimizing the societal challenges, like
unemployment, poverty & socioeconomic gap. Recent searches has worked upon the
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long term prosperity as well as economic growth of UK that needs full contribution from
all small and medium enterprises. Government is choosing for uplifting the small-scale
entrepreneurship as a recognized instrument to mitigate the economic crisis. Through
increasing percentage within the employment options in the small enterprises the local,
regional, as well as national development objectives could be attained. In common words,
the small & medium enterprises are categorized as the back bone for the overall national
development of UK (Mohamed and Ali, 2021).
From the present discussion, it is determined that the participation from start-ups as well
as from small businesses for the economic growth is highest through offering various innovative
thoughts along with a sources of revenue to those audiences which gives rise to high living
standards. Providing an opportunity of a job to the needy and competent ones helps them to fulfil
their objectives as well as essential requirements.
Determining the skills of an entrepreneur in comparison to other business managers.
Skills Creative: As every entrepreneur are creative in their behaviour on the basis of ideas
which they generates. For example: Bill gates is having creativity skill because he was
very enthusiastic towards his goals for that he acquire many other unique skills like
coding, analytical etc. Passionate: This skills defines about how individual entrepreneur is devoted towards his
or her entrepreneurial goals. Similarly Bill gates was very passionate in technology field
where in his initial stage he started to create website designing and coding as Bill always
wants to make his career in technology field (Nili and et. al., 2020). Motivated: According to this skill, it defines about how individual entrepreneur self
belief and ready to take risk in his or her professional objectives accomplishment. For
Oprah Winfery, she had been struggle in her life where she started her career in voice
over field as she always make herself motivated.
 Future oriented: In this skill entrepreneurs are focused on moving forward, they are
always towards makes future oriented. For example: Oprah Winfery is always having
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her future oriented aspect behaviour where they set their goals towards gain accomplish
these goals (Singh, Singh and Sethi, 2021).
Illustrate about entrepreneurial personality reflect about entrepreneurial motivation.
An individual entrepreneur having different characteristics, traits and skills on which
information differentiate them form with other people or managers. It is having directly impact
of motivation and better mindset of entrepreneurs due to which they could not become better
successful. Through better OCEAN model can be utilised that properly reflecting on the basis of
entrepreneurial motivation mind set. There are 6 types of personality traits on which Oprah
Winfrey and Bill Gates suitable in any one of them.
Openness: According to this aspect, it addresses about emotions, adventure and ideas. More
about this personality trait reflect of curiosity and creativity which is helpful for
entrepreneur motivation. It is useful for learning about new things which flexible handle
with good presence of mind
Conscientiousness: This is majorly refers within proper process and quality of reasonable
within systematic manner. According to this state of mind of entrepreneur need to focus or
those are goal oriented which involve unproductive activities in order to accomplish their
goal effectiveness.
Extroversion: It is define about the entrepreneurs which must enthusiastic, like to share their
own thoughts and suggestions as well as participate in social to influence the employees and
other person positive manner. Through these the entrepreneur can also maintain good
relation with staff which assists them towards long term retain workers.
Agreeableness: According to this personality traits it helps to make agree on coordiante person
which helps to make the work done in perfection. The decision making and other suggestion
plays an important role in agreeableness personality. (Yacoub and et. al., 2021).
Neurotic ism: On the basis of this personality traits it defines that anxiety, fear or some sort of
scarcity makes weaker the enterprenuers in complex or random work situation. In these type
of situation enterprenuer make their decision in very clam manner and must intake patience
to seek outcomes.
Evaluation:
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On the basis of above Ocean personality trait is summaries that Oprah Winfery is having
personality of Openness as she is very emotional and having better presence of mind. Bill Gates
is very Extrovert kind of personality as he engage with people and books more to generate ideas
and also having ability of sharing opinion.
Discuss background and experience can hinder or foster of entrepreneurship.
On the basis of experience and background of Oprah Winfery and Bill gates which
helped them for successful as follows:
Oprah Winfery:
Background: Orpah Winfrey was born on January 29 1954, after Winfrey got its birth
her mother moved towards north & Winfery has spend her 6 years of life in the situation of rural
poverty with her maternal grandmother. Her grandmother made her enough educated to read.
She has attained her academic qualification from Lincoln High school at Milwaukee.
Experience: Winfrey first joined her job at the teenage where she was working in grocery
shop. At her age of 17 years, Winfrey was awarded with Miss black Tennessee beauty parade.
She had also attended in local black radio station. After spending some of time in Radio she
started her career in television where she used to take interview (Zafar and Ometto, 2021).
Bill Gates:-
Background:- The William Henry Gates III was born on 28th October in 1955 at Seattle,
Washington as son of William H. Gates and Mary Maxwell Gates. As the journey of being good
enterprenuer Bill started to make his study in technological field. As he was very genius during
his education line and the IQ scoring of Bill was around 1590 marks from 1600 approx. Thus,
Bill completed his education from Lakeside School and Harvard Colleges. After that he started
to explore more in technological background as he wanted to make his own career in better way.
Experience:- As per Bill Gates professional experience he started his first in IBM
company while in his graduation days Bill gets more placement opportunities from bigger
companies but he rejected and wanted to started his own venture which was Microsoft
Corporation. After exploring and hustle with his dream Bill finally ready with his start up in 4
April in New Mexico, United States.
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CONCLUSION
From the above report it has been summarised that the entrepreneurs are those persons
who converts the ideas in reality for the satisfaction of customers needs & requirements. It
comprises the different types ventures like small, large and social organisation which is related to
the topology of the entrepreneurship. The entrepreneur requires several skills, traits or
characteristic to become successful in business so as to gain the efficiency & productivity. The
entrepreneurs and small businesses takes the risks to start new venture by making investment.
The high employment opportunity permits additional development of country's economy.
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REFERENCES
Books and Journals
Akpan, I.J. and Ibidunni, A.S., 2021. Digitization and technological transformation of small
business for sustainable development in the less developed and emerging economies: a
research note and call for papers. Journal of Small Business & Entrepreneurship, pp.1-
7.
Biswas, A. and Verma, R.K., 2021. Attitude and Alertness in Personality Traits: A Pathway to
Building Entrepreneurial Intentions Among University Students. The Journal of
Entrepreneurship, p.09713557211025656.
Escobar and et. al., 2021. Lead user innovation and entrepreneurship: Analyzing the current state
of research. Journal of Small Business Management, pp.1-18.
Fard, M., Kabaranzad Ghadim, M.R. and Haghighat Monfared, J., 2021. Identification and
analysis of the dimensions of digital entrepreneurship development and provision of its
model for knowledge-based SMEs. Journal of Technology Development Management.
8(4). pp.49-80.
Hauge, K., Rantala, J. and Holopainen, T., 2021, July. Startups Born Out of Academia:
Structural Pattern of Monetization Failures, Rectified. In International Conference on
Applied Human Factors and Ergonomics (pp. 3-8). Springer, Cham.
Jo, G.S. and Jang, P., 2021. Innovation characteristics of high-growth startups: the Korean case
startups. Journal of Small Business & Entrepreneurship, pp.1-18.
Jones, O., 2021. Academic engagement with small business and entrepreneurship: Towards a
landscape of practice. Industry and Higher Education, p.09504222211034453.
Kremin, A.E., Makoveev, V.N. and Mukhametova, L.R., 2020, March. Managing the economy
of rural areas on the basis of small business development. In Proceedings of the III
International Scientific and Practical Conference (pp. 1-5).
Mohamed, N.A. and Ali, A.Y.S., 2021. Entrepreneurship education: systematic literature review
and future research directions. World Journal of Entrepreneurship, Management and
Sustainable Development.
Nili and et. al., 2020. Identifying Personality Traits Associated with Entrepreneurial and
Intrapreneurial Intentions among Student Pharmacists.
Singh, M., Singh, K. and Sethi, A.S., 2021. Contribution of green manufacturing for realizing
business performance in Indian small and medium scale organizations (SME’s). Journal
of Science and Technology Policy Management.
Yacoub and et. al., 2021. Sustainable Entrepreneurs: What Drives Them to Engage in Different
Crowdfunding Types?. In Academy of Management Proceedings (Vol. 2021, No. 1, p.
13571). Briarcliff Manor, NY 10510: Academy of Management.
Zafar, A. and Ometto, M.P., 2021. Oppression, Entrepreneurship, and Emancipation: types of
entrepreneurs and emancipatory outcomes. In Academy of Management Proceedings
(Vol. 2021, No. 1, p. 12719). Briarcliff Manor, NY 10510: Academy of Management.
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