Entrepreneurship and Small Business Management

This report discusses different types of entrepreneurial ventures, their relation with different typology of entrepreneurship, skills of entrepreneurs in comparison to other business managers, and the importance of start-ups and small businesses to the growth of social economy.

Entrepreneurship and
small business
management

Table of Contents
INTRODUCTION...........................................................................................................................1
Activity 1.........................................................................................................................................1
Explain different types of entrepreneurial ventures and reflect how they relate to different
typology of entrepreneurship......................................................................................................1
Explore similarities and differences of different entrepreneurial ventures.................................3
Interpret and assess relevant data demonstrate how small business impact economy................5
Explain importance of Start-ups and small businesses to the growth of social economy...........7
Determine skills of entrepreneurs in comparison to other business manager.............................7
Assess how aspects of entrepreneurial personality reflect motivation and mindset...................9
Examine relevant examples how background and experience can hinder and foster
entrepreneurship........................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship refer to an activity to set the business where entrepreneurs are take
financial risk in the hope of generate profitable results. It is a creation or extraction of the value.
Entrepreneurs are those personality who entails risk beyond what generally does other individual
while starting a venture. This report is mainly based on two entrepreneurs i.e. J K Rowling and
Elizabeth Gooch who are successful entrepreneurs in UK and all over the world. This report
demonstrate the different types of entrepreneurial ventures and their relation with different
typology of entrepreneurship (Rezaei-Moghaddam and Izadi, 2019). Further it represent
similarities and difference between entrepreneurial ventures along with importance of small
business on national economy and social economy. This also explain skills of entrepreneurs and
their personality that helps them to become successful in their professional life. At last it reflects
examples of entrepreneurs with background and experience that hinder and foster them to
become successful as an entrepreneurs.
Activity 1
Explain different types of entrepreneurial ventures and reflect how they relate to different
typology of entrepreneurship
Entrepreneurship define the mindset of people that allows them to see opportunities at
everywhere. Entrepreneurship is not something that an individual do because he/she have an idea
but it's the concept of having creativity to question. It gives strength to believe or courage to
move. It mainly involves risk but at the same time it includes the profits to create a legacy.
Types of entrepreneurs
 Social entrepreneurs- It is a type of approach by group, individuals, entrepreneurs or
start-up companies. This type of entrepreneurs are those who operate the business firm
with the motive of solving social issues or affecting social change (Nassif, Armando and
Lopes La Falce, 2020). For instance- Alex Stephany is a social entrepreneur who is
founder of Beam that facilitates crowdfunding platform that generate funds for homeless
people in London.
 Serial entrepreneurs- A serial entrepreneur is one who emphasis on starting and lead
one business after another or multiple business at a same time. They are the one who
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exceptionally innovative to bring up new business ideas for gaining profitable results. For
example- Alex Chesterman is a leading serial entrepreneur in the world of digitalisation.
Types of ventures
 Large Company- This type of business venture perform various options at same time
because they have huge number of capital and infrastructure to perform activities to
attract customers. This type of organisation offer job opportunities to people where
company have their presence. Large companies always focus on satisfying employees
need by providing offerings that fulfil their needs. Examples- Samsung, Apple, Amazon
etc.
 Small business- This type of business are owned by individual person who operate
business to fulfil core needs of their family. In this type of venture very few people are
involved. Examples of small business are grocery stores, carpenters, plumbers etc.
 Social business- This type of venture are formed to fulfil the needs and requirements of
society. Social businesses are also working for the welfare of society (Julien, 2018). This
type of enterprise generate profitable outcome by providing better facilities to society
who are in need. Example- Cafedirect in UK is an example of social enterprise.
Difference between small business and entrepreneurial ventures
There are very thin line between small business and entrepreneurial ventures that create
difference between small business and entrepreneurial ventures. The difference between these
terms are presented below:
Small business Entrepreneurial ventures
 Small businesses are mainly deal with
the existing products and services.
 Small business take the known risk.
 Entrepreneurial ventures mainly
deliuver the creative and innovative
products to customers to satisfy their
need and generate more profitable
results.
 Entrepreneurial venture take uncertain
risk and deal with passion and
calmness.
Typologies of entrepreneurs
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The above enterprises are working within the current business environment that play a
crucial role in developing the different typologies of entrepreneurship ventures. Some of the
typologies of entrepreneurs are presented below:
 Social entrepreneurs- It is an approach by group of people, individuals, start-up
companies, entrepreneurs in which they develop, execute solution for reducing the
harmful impact on community, society and environment. These type of entrepreneurs
belong to social enterprises where they operate business with the aim of fulfilling
demands and requirements of society to develop their living standards.
 Owners managers- These are those person who own both a business and also manages
it. They are the person which usually found in the small business where an individual
owns business and managed it. In this small entrepreneurship are involved who are
working lonely to generate profits by selling goods and services to local people.
 Intrepreneurship- It defines the system that allows employees to express themselves as
an entrepreneur within an organisation. They are generally self motivated, action oriented
people who emphasis on take an initiative to pursue innovative products and services.
 Scaleable start-ups- It defines that type of entrepreneurs who emphasis on doing
innovation to operate business enterprises (Lambert, 2019). In this entrepreneurship,
employees are working on new ideas that are not available in market to satisfy needs and
requirements. Bes example of this entrepreneurship is Facebook.
Explore similarities and differences of different entrepreneurial ventures
Difference between entrepreneurial ventures
Basis Large enterprises Small enterprises Social
entrepreneurship
Scale This type of
businesses are operate
on high level due to
which they need more
amount of capital and
resources to run
business smoothly.
Small businesses
operate with limited
capital and resources
because they only sell
their products in local
area to satisfy local
people needs.
These type of
enterprises are
operated on local level
to satisfy needs of
local people.
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Aim The aim of operating
these type of
businesses is to satisfy
the needs and
requirements of people
through innovative
ideas to earn high
profitable results.
The main aim of small
enterprises is that they
earn for enhancing
livelihood of their own
and individual family.
Social enterprises are
working for offering
social benefits to local
people so that their
living standard are
developed
Key attributes These businesses
needs huge amount of
capital, human
resources to run a
business and satisfy
the needs and wants of
customers (Baker,
Kumar and Pandey,
2021).
To operate these type
of businesses,
entrepreneurs needs
limited resources to
run a business and also
the government
interference in these
businesses are low.
These firms are
operate by taking
funds from
government because
they are operate for
welfare of society
people.
Similarities between entrepreneurial ventures
Basis Large enterprise Small enterprises Social enterprises
Fulfilling needs These are operated to
fulfill the needs of
customers on huge
level.
These businesses are
also formed for
satisfying the local
people needs.
These businesses
satisfy the needs of
people by support their
needs and
requirements.
Society upliftment Large enterprises offer
many job opportunities
to people and also
innovate products and
services that fulfil
Small enterprise also
offer job opportunities
to people on local
level so that local
people living standard
They offer services to
society people to uplift
the society people and
their sustainability in
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requirements of people
to live comfortably.
is developed. effective manner.
Interpret and assess relevant data demonstrate how small business impact economy
Micro and small business organisations are small in size where less than or up to 49
employees are working or get the job opportunities. These type of businesses are work on small
level and also their balance sheet contains low amount. Small businesses offer 0-49 job
opportunities, however micro business offer approx 5 people job opportunities. Therefore, both
small scale or micro business are operated by sole trader where they offer few job opportunities
to enhance society upliftment. Entrepreneurs are operate these type of businesses to enhance
living standard of individual family. SME contribute more on grow national economy by
providing opportunities and bring innovation at marketplace.
For instance- In UK brexit was occur that impact the national economy highly because
getting exit from European union (McElwee and Atherton, 2021). This impact fall down the
currency amount that generate issues for company in their growth and survival. At this time
micro and small businesses help UK government and economy to deal effectively in this
situation that are shown below in the figures:
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Impact of SME on economy
 Local impact- Micro and small businesses are directly impact on local economy of
country by offering job opportunities, products and services to local people in order to
fulfil the needs and demands of society people. By this analysis organisation examine
buying ability of consumers so that they offer products and services accordingly.
 Regional impact- SME firms also impact the regional economy in positive manner by
offering job opportunities to remove the unemployment issues in regional society. Due to
this employment rate is generated that is also effective to expand the business operation
with talented employees. This also improve regional income and infrastructure that is
used to welfare of society people.
 National impact- SME in UK also impact the national level because these type of
businesses are operated with less money and capital but satisfy many people needs with
products and services. They are generally emphasis on developing innovative ideas so
that profitability of organisation is also maximised (Kuratko and Morris, 2018). These
profits helps UK government to enhance the economy. Therefore more than 15.7 million
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people are employed by SMEs that impact positively on developing the UK economy and
growth.
Explain importance of Start-ups and small businesses to the growth of social economy
Small business define to a privately owned business that is manage and control by sole
trader, partnership where very limited employees are involved. These businesses are working
with low capital and does not have more legal regulations.
Social economy are traditionally refers to the set of associations, mutual organisation,
foundations etc. whose activity are basically driven by value of democratic and participative
governance, value of solidarity etc. it generally involves norms, values etc. that helps to
influence the people towards buying products and services that also shape purchase trends within
organisation. Therefore, it enhances social and national economy (Pham, 2018).
Therefore start-up and small enterprises highly contributes in social economy and to understand
it several importance of small and start-ups businesses are presented below:
Importance of small business and Start-ups business to growth of social economy
 Job creation- Small and Start-ups firms offer many job opportunities to the society
people that develop social economy of UK. AS small and start-ups venture offers
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Illustration : Role of Start-ups and Small Businesses

employment opportunities reduce the poverty in nation and fulfil core needs and
requirements of customers and individual family.
 Economic growth- Start-ups and small businesses generate high level of income every
year by offering quality goods and services to society people at reasonable cost.
 Enhance living standards- Start-up and small business ventures provide innovative
products and services to customers along with job opportunities that helps people of
society to develop their living standards (Do Startups Really Create Lots of Good Jobs?,
2021). These businesses remove poverty from nation and develop social economy
effectively and efficiently. This helps businesses to pay taxes on time to government to
maximise financial health of nation. In this manner, small business generate motivation in
other entrepreneurs to start their own business so that high profitable results are enjoyed.
By above discussion it is understood that small and start-up business contributes more
towards the growth of economy and maximise innovative ideas and income sources of people
that develops living standard of people. Generate more job opportunities make people more
capable to fulfil their needs and requirements.
Determine skills of entrepreneurs in comparison to other business manager
Skills
 Creative skills- This skill is importance for entrepreneurs because by having innovative
ideas problems are easily resolved at workplace. Besides this customers needs are also
satisfied. This skill is present in both Elizabeth Gooch and JK Rowling that helps to
become successful and fulfil needs of customers in successful manner. Business manager
are different in this skill because they are employees of venture who works on ideas
delivered by entrepreneurs to them.
 Decision making skills- This skill demonstrate that there is no room for procrastination
within organisation. Entrepreneurs take decisions that gives successful results to them.
Both entrepreneurs i.e. Elizabeth Gooch and Rowling have this skill where they take
decisions to capture more new opportunities for success of business (Bruce, Gurley-
Calvez and Norwood, 2020). This skill is not effectively present in other business
manager because they does not have power to take decisions of their own as they are paid
employees of enterprise.
Traits
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 Future-oriented- It is one of an essential trait that present in entrepreneurs because they
are always looking forward to generate profits. Both entrepreneurs Elizabeth Gooch and
Rowling have this trait due to which goals are easily attained on time. Having future
oriented both entrepreneurs develops a strong vision that helps in set the path for success
in business industry. Business manager are different from entrepreneurs because they are
not future oriented as they complete the targets which are assigned to them by
entrepreneurs.
 Motivation- It is essential trait of entrepreneurs that helps them to encouraged team
members to grow towards productive work in completing the task. This trait is present in
JK Rowling and Elizabeth due to which they motivate people of organisation so that they
indulge in attaining goals so that organisation enjoy long term success.
Characteristics
 Flexible- Successful entrepreneurs understand that the environment and world in which
they operate are change constantly. Hence, this feature is seen under both the
entrepreneurs Elizabeth Gooch and JK Rowling that helps in gaining successful results
within marketplace. Due to this skill, both entrepreneurs adopts strategies according to
environment so that demands and requirements of market are fulfilled and entrepreneurs
generate more profitable results.
 Passionate- It is one of an effective feature that present within entrepreneurs to continue
the work without any boredness. Having this characteristics in both entrepreneurs
( Elizabeth Gooch and Rowling) helps them to work on regular basis to attain the goals
properly. This attribute is different from other business managers because manager losses
their patience level in complex situation due to which they cannot take proper decisions.
But entrepreneurs are calm in every situation that helps them to take right decisions.
Assess how aspects of entrepreneurial personality reflect motivation and mindset
Entrepreneurs have various types of skills, traits, characteristics etc. that differentiate
them and other business management (Abdullah, 2020). These factor represent entrepreneurial
motivation and mindset as well and these factors directly affect entrepreneurial motivation and
mindset due to which they become successful. To effectively understand entrepreneurial
personality ocean model is very effective and factors of this model are presented below:
OCEAN MODEL
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 Openness- This aspect is linked with adventure, ideas and emotion. It expressed that
curiosity and creativity within entrepreneurs are very helpful to take decisions effectively.
Elizabeth Gooch and Rowling both are high ranked in this trait that helps them to learn
new things and tackle challenges present in or outside the business.
 Consciousness- It is linked with reliability and flexibility. It represents that both the
entrepreneurs i.e. Rowling and Elizabeth Gooch should stay focused towards their goals
rather to include in any unproductive activities to attain the goals appropriately and
efficiently.
 Extroversion- This states that entrepreneurs stay assertive, energetic, social, talkative in
order to encourage employees towards targets achievements. Elizabeth Gooch and
Rowling both have an extroversion personality that helps in maintain good relation with
other people and also encouraged employees towards attaining the targets.
 Agreeableness- It refers to that aspect in which entrepreneurs needs to be trustworthy
and cooperative in order to coordinate with employees and other people. This aspect
personality show in Elizabeth Gooch and Rowling that helps to maintain employees
relations so that targets are attained very frequently. In this entrepreneurs take
suggestions and ideas from employees related to working and improvement so that high
successful results are attained.
 Neuroticism- It is associated with fear, worry, frustration, envy etc. where person react
in negative manner on random situation (Ramadani and et. al., 2019). Both the
entrepreneurs have low ranked in their trait and calmly handle all random situation. Due
to having this personality working environment is reflected in healthy manner.
Examine relevant examples how background and experience can hinder and foster
entrepreneurship
Elizabeth Gooch
 Background- Elizabeth Gooch started to work at HSBC bank at 18 and after a year,
Gooch left her job and start working in a consultancy venture. Again, she left the
company and collect small amount of money from family and friends. She collected
around £1,000 from family and friends to start the own company. In this organisation she
started to offer consultancy and training services related to operation management. In this
she realised that she lack in gather the needy information to develop productivity and
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profitability of company and after noticing it Elizabeth change the services with software.
At that time she contacted with Rodney baker-bates who is a CEO of prudential financial
services to hired him as a chairperson of company. After that, she float the venue in
market for collecting funds by attracting number of candidates.
 Experience- Elizabeth Gooch start business at the same time she faced many problems
such as lack of finds, supports from family and friends etc. She managed to handle these
issues and emphasis on growth of the business. To meet with Rodney Baker Bates who
offers ideas to her related to development of software instead of offering consultancy
services. In this manner she become successful in her entrepreneurial career.
JK Rowling
 Background- JK Rowling is a British Author and screenwriter of Harry potter children
book series. Rowling was born on Yate, England since 1965. She is a graduate student
from University of Exeter. She married with Portuguese Journalist (Ughetto and et. al.,
2020). After some year she get divorced and moved to Edinburgh with her daughter. She
face many struggle and at that time Rowling worked on their first book in Harry Potter
series. The idea of writing a book is generated when she was travelling in train from
Manchester to London in 1990.
 Experience- She experienced struggle in the path of becoming successful entrepreneur in
the world. After getting divorced she faced many issues and at time time she focused and
passionate about writing a books and thought to write a Harry potter series that become
trending in the world and in this manner JK Rowling become successful in their
entrepreneurial career.
CONCLUSION
By above information it is concluded that there are numerous entrepreneurs exist in the
world who innovate ideas and develop business to maximise economy of nation. This report is
very crucial to understand the type of entrepreneurs and their relation with typologies along with
similarities and difference between different entrepreneurial ventures. Furthers it demonstrate
various statistics that impact on the economy and the importance of small business and start-ups
on the social economy. By having number of start-up companies there are more job opportunities
presented in market that enhance the living standard of people and also growth potential of
country. This report also helpful in recognising the entrepreneurs traits, skills and characteristics
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such as innovative skill, decisions making, passion, flexibility etc. helps them to become
successful in the world and encourage customers towards their offerings to generate more profits
and sales. As per their skills this report acknowledge their personality trait which help to
understand entrepreneurial mindset. At last this report helps in gain knowledge about
entrepreneurs experience and background that create blockage or foster to develops as an
entrepreneur so that other individual also motivates them and become successful in their life.
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REFERENCES
Books and Journals
Abdullah, N.M., 2020. Family entrepreneurship and banking support in Kuwait: conventional vs
Islamic banks. Journal of Family Business Management.
Baker, H.K., Kumar, S. and Pandey, N., 2021. Thirty years of Small Business Economics: A
bibliometric overview. Small Business Economics. 56(1). pp.487-517.
Bruce, D., Gurley-Calvez, T.J. and Norwood, A., 2020. Taxes and entrepreneurship: A literature
review and research agenda. Foundations and Trends® in Entrepreneurship. 16(5)
pp.393-443.
Julien, P.A. ed., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kuratko, D.F. and Morris, M.H., 2018. Examining the future trajectory of
entrepreneurship. Journal of Small Business Management. 56(1). pp.11-23.
Lambert, T.E., 2019. Monopoly capital and entrepreneurship: whither small
business?. Cambridge Journal of Economics. 43(6). pp.1577-1595.
McElwee, G. and Atherton, A., 2021. Rural entrepreneurship. In World encyclopedia of
entrepreneurship. Edward Elgar Publishing.
Nassif, V., Armando, E. and Lopes La Falce, J., 2020. Entrepreneurship and Small Business in
the Context of Post Covid-19: Is there Light at the End of the Tunnel?.
Pham, D., 2018. Contemporary issues in entrepreneurship research volume 7: Entrepreneurship
education: New perspectives on research, policy & practice. International Journal of
Entrepreneurial Behavior & Research.
Ramadani, V. and et. al., 2019. Informal ethnic entrepreneurship: Future research paradigms for
creating innovative business activity. Springer International Publishing.
Rezaei-Moghaddam, K. and Izadi, H., 2019. Entrepreneurship in small agricultural quick-impact
enterprises in Iran: Development of an index, effective factors and obstacles. Journal of
Global Entrepreneurship Research. 9(1). pp.1-21.
Ughetto, E. and et. al., 2020. Female entrepreneurship in the digital era. Small Business
Economics. 55(2) pp.305-312.
Online
Do Startups Really Create Lots of Good Jobs?, 2021. [Online] Available through
<https://hbr.org/2016/06/do-startups-really-create-lots-of-good-jobs>
UK SME Data, Stats & Charts, 2020 [Online] Available through
<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/>
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