Entrepreneurship and Small Business Management Study Material

Entrepreneurship and
Small Business
Management

Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1...................................................................................................................................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............................5
Interpret and assess relevant data explaining how small businesses impact the economy..........6
Explain the importance of start-ups and small businesses to the growth of social economy....10
Determine the skills an entrepreneur has in comparison to other business managers...............10
Assess how aspects of entrepreneurial personality reflect mind set and motivation.................11
Examine using relevant examples how background and experience can hinder or foster
entrepreneurship........................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
An entrepreneur is an individual who initiates, starts up and run the business by collecting
and utilising the resources of the company and also plan it’s working. It is the sole personnel
who has responsibility to take risk and rewards that is being earned through business enterprise.
For an entrepreneur, the new business model is encompassed by offering new product and
service rather than using the existing model. There is a slight difference between the
entrepreneurial venture as well as small business wherein the former is engaged in introducing
the novel offering while the latter may use existing business model (Kulawiak, 2017). This report
will cover the various types of entrepreneurial ventures, similarity and difference between the
ventures, impact of small business on economy and importance of it in social economy. Further
it will include skills of business manager in comparison to business manager, how aspects of
entrepreneurial personality reflect motivation and how experience and background of
entrepreneur hinder or foster entrepreneurship.
ACTIVITY 1
Examine different types of entrepreneurial ventures and explain how they relate to the typology
of entrepreneurship.
An entrepreneurship can be referred to as the mind-set which allows an entrepreneur to see
the opportunity anywhere.it may be a business idea but may also include seeing possibility in
people who can help in growing the business. this ability to see different options in each situation
is very important and there shall be unending challenges which will test the hustle of
entrepreneur. There are different types of entrepreneurs, of which some of them are discussed
below-
 Social: These consist of the entrepreneur who are innovators that focus on creating such
offering which have capability to solve the social problems and needs. Their target is to
make a world a better place and not involve in taking the market share or create the
wealth for founders (Julien, 2018).
 Serial: The entrepreneur who continuously comes up with the new ideas and initiates
new business is serial entrepreneur. Unlike typical entrepreneur who comes up with new
idea, starts business and handles daily responsibility, serial entrepreneur comes up with

idea, start the business and then gives the responsibility to other and move to new venture
or idea.
Types of entrepreneurial venture:
 Small business: It comprises of limited number of employees that ranges between 0-49
and often seeks funding from friends, family or small business loans. The main aim of
this venture is the earn the livelihood by generation of profit and do not want to take over
any industry.
 Large business: It is that enterprise which involves more number of employees as
compared to small business and is involved often in offering the novel product or service
to consumers as per their needs, wants, taste, preference, competitors, etc. They are
engaged in introducing variants of their existing offering and is aimed to expand and
grow their functioning so that large market is captured.
 Social: These are the non-profit organization which has an aim to overcome or tackle the
social problem and do welfare for the society so that standard of living is raised of the
people (Tandelilin and et. al., 2020).
Typology of entrepreneurship
 Growth firms: It consist of those entrepreneurship which have an aim to grow and
expand the business so that it can be flourished. It is suitable for small as well as large
ventures as they have an ability to grow due to its single purpose of generating
profitability.
 Lifestyle firm: These include those enterprises which has an aim to enhance the living
standard of people by offering them quality products or services. It also offers
employment opportunity to people so that their livelihood earned from firm is utilised to
raise the standard of living.
Difference between-
Basis Small business Entrepreneurial venture
Innovation These often do what the
entrepreneurs are already doing as
they have the nature of being
reactive.
They are the one who are known to
develop and invent new things,
their mind is technical and are
proactive in nature.
Motive They start up the business with the They start up the business as they