Entrepreneurship Theories and Practices

This assignment delves into the multifaceted world of entrepreneurship. It requires students to analyze various theories that underpin entrepreneurial behavior and venture creation. Furthermore, the assignment encourages critical evaluation of real-world examples and case studies, highlighting the practical challenges and strategies employed by successful entrepreneurs. A comprehensive understanding of both theoretical frameworks and practical applications is essential for a successful completion of this assignment.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and relation of typology with entrepreneurship1
P2 Similarities and difference between various entrepreneurial ventures..................................2
P3 Impact of micro and small business on economy of country.................................................3
P4 Importance of small and start-ups businesses for the growth of social economy..................4
TASK 2............................................................................................................................................6
P5 Factors or characteristics that makes a successful entrepreneur............................................6
P6 Entrepreneurial personality which reflects entrepreneurial mindset and motivational..........7
P7 How past experience or background can hinder or foster entrepreneurship..........................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship refers to set of activities which are undertaken by an individual with the
motive of earning profit. A person who starts a business with some uniqueness and takes risk, is
known as an entrepreneur. He has to manage all activities related to enterprise so that project can
achieve its desired result or outcome (Radojevich-Kelley and Hoffman, 2012). This report is
based on entrepreneurship and small business management. As a member of federation of small
business, this project will motivate the people to start a firm in local area. This study will explain
different types of entrepreneurial ventures and their relationship with typology of
entrepreneurship, similarities and difference among those ventures, impacts of micro and small
firm on the economy and various characteristics of an entrepreneur.
TASK 1
P1 Different types of entrepreneurial ventures and relation of typology with entrepreneurship
Being a senior member, it is analysed that there are various types of ventures which are
as follows-
 Small: It includes grocery stores, hairdressers, consultants and travel agents etc that are
barely profitable. Small entrepreneurial venture lays high level of emphasis on appointing
outsiders and family members as employees. Besides this, small entrepreneurs are not in
position to attract venture capital so they raise fund via family members and bank loan.
 Medium: Such kind of entrepreneurial ventures come in the category of Silicon Valley
types of entrepreneurs. Moreover, medium or scalable entrepreneurs have vision in
relation to changing the world. Medium sized entrepreneurs make focus on hiring best
and brightest personnel that aid in the productivity & profitability. Usually, such type of
entrepreneurs raise fund via venture capitalists source.
 Large: In large entrepreneurial aspects, companies grow through the means of
innovation. Large sized companies have finite life cycle and places more emphasis on
offering new products to the customers. Further, large entrepreneurial ventures make
more focus on innovation and enhancing customer base by acquiring profitable as we3ll
as unique companies.
Besides this, there are also some other types of entrepreneurial ventures such as:
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 Lifestyle ventures- This type of business is started by a person for maintaining his
lifestyle and status in the society. In this, entrepreneur takes some steps so that he can
maintain competitiveness in the local market but this firm does not expand their business
and focuses on operation in limited market area.
 Survival ventures- This business is helpful in survival of businessman as well as his or
her family. This undertaking is small in nature and operates with limited resources.
Generally, it is based on cash as well as on barter system and have no relation with banks
and other financial institutions (Bjerke, 2013).
 Managed growth ventures- This type of project is more profitable and has stable growth
with use of workable model. In this, entrepreneur invests their time and money
continuously so that he can get his specified result. This kind of venture introduces new
products or services and also hires large number of employees so that they can carry out
business in proper and efficient manner.
All above mentioned ventures are related with various typologies of entrepreneurship
which are given below-
 Small business- This venture includes travel stores, grocery, car painters etc. who are
only responsible for running an organisation. This undertaking does not require large
amount of investment as well as employees. In this, only one-person is responsible for
taking all decision related to firm (Bjerke and Ramo, 2011).
 Scalable start up entrepreneurship- This business is commenced just for changing the
world. By starting this undertaking, businessman is able to attract more investors who
will invest their money into this firm. Those investors are known as venture capitalists.
 Large company- These companies identify the requirement of their target market and
accordingly produce goods or services so that it can serve to their customers accurately.
If there is any change in taste and preferences of consumers as well in the market then it
increases pressure for the company and also creates disturbance in the functioning of
organisation.
 Social entrepreneurship- This type of venture has main objective to serve the society
and then to earn surplus. This undertaking provides innovative products or services to
consumers that assists in satisfying their needs and wants.
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Scope: In the field of entrepreneurship, scope may be defined in local, regional and national
terms. Moreover, entrepreneurs have an opportunity to implement their unique ideas at each
level and thereby attain success. The main reasons behind this, entrepreneurs are not bounded on
the basis of geographical aspects. Thus, by fulfilling all legal and other formalities entrepreneur
can start venture and thereby become able to gain competitive edge over others.
P2 Similarities and difference between various entrepreneurial ventures
There are many types of entrepreneurial venture as explained above which some
similarities and difference that are given below have-
Ventures Difference Similarities
Managed growth project In this, management style is
strategic that means it adopts
style as per environment and
also has moderate
entrepreneurial operation
(Khosa and Kalitanyi, 2014).
Its main objective is to earn
more profits that are similar
with aggressive growth
strategies.
Life style venture In this, management style is
adopted after doing planning
and have very simple structure.
In this, capital is arranged from
personal sources such as
family, personal savings etc.
Survival venture These organisations are less
entrepreneurial oriented and if
they face any crisis in the
business then they only shut
down their enterprise.
Its management style is
reactive in nature that are
different from other
establishments (Badenhorst-
Weiss and Cilliers, 2014).
 Public enterprise- Company is wholly or partially controlled by government which has
main objective is to develop country as well as to the backward areas. It can sell their
stocks to the public for raising capital.
 Private company- This venture is controlled or maintained by private person which has
main objective to earn profit by providing better quality of goods or services to the
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society. This firm cannot invite the public for taking its stock and also cannot have
stakeholders more than fifty.
 Social enterprise- Its main purpose is to provide more benefits to the people so that it
can improve living of standards of society. If this undertaking earns profit then it invests
that amount in the welfare of society as well as for the environment.
 Micro enterprise- It can also be known as small organisation which has maximum nine
employees and has annual turnover less than GBP two million. Generally, this
organisation is operated by family members of entrepreneur.
 Medium enterprise- That undertaking which has less than 250 manpower and holds
annual turnover less than GBP 50 million, is known as medium enterprise.
 Large company- A business will be assumed large when it will fulfil the following
conditions-
◦ At least should have five thousand workforces.
◦ Should also have annual turnover more than GBP 1.5 billion.
If enterprise will satisfy the above-mentioned conditions then it will assumed as large
company (Bjerke and Karlsson, 2011).
P3 Impact of micro and small business on economy of country
Generally, micro enterprise is operated by family members or only by one person. This
undertaking is very important for a dependent old man, minor or women because they can start it
by investing less amount of money. It is very helpful because with the support of this, dependent
people can live their lives comfortably and easily. As per report, micro business aids in
developing living of standards of 92% population of UK who are not able to do any physical
nature of work and also provides assistance in wealth creation and improving quality of life
(Appelkvist, 2013). These organisations generate approx. 1.9 million employment opportunities
and also creates full employment situation in the entire country which aids in the development of
people as well as of nation.
Small organisations are those which have more than 5 and less than 500 workforces and
is only owned by one person who will be only responsible for taking all business related
decision. If there occurs any profit or loss then in this situation, only that person is liable. It also
provides more job opportunities to the people of UK. It gives employment around 24.3 million
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people in UK and gives 60% of private sector employment, and also provides the job
opportunities in local and small communities.
These small and micro organisations are very important for the development of economy
and has many impact on the country which are as follows-
 Impact on local communities- These enterprises influence the people of UK in positive
manner. As a member of federation, it is analysed that these firms create approx 64%
new jobs that assist in the growth of local communities.
 National and international impact- These enterprises affect the national and
international economy because it provides more job opportunities to many people. In UK,
every small and micro enterprises provide more employment because 37% of this kind of
businesses are engaged in innovative activities so it must hire more people for carry out
operation of firm in smooth and effective manner.
 Regional impact- These undertakings also influence various regions because start-up
companies provides direct job to the people.
Small, medium and micro organisations play a key role in the development of individuals
as well as of the country that is done by providing more jobs to the population of nation
(Chourides, Hadjiphanis and Evripidou, 2015). These projects have also negative impact such as
it creates more competition in the market by supplying more goods or services.
P4 Importance of small and start-ups businesses for the growth of social economy
Small and start-up companies contribute in the development of economy of UK by
providing more job opportunities to the people who are residing in that country (Chavez, 2016).
These undertaking is very important for the nation in the following manner-
 These small or medium enterprises contribute in the development of country by creating
more job possibilities.
 It adopts new or unique idea that attract the people towards the project.
 These firms have high growth in process, products and wider innovation that drives the
country towards the development.
 These new or innovative ideas are helpful in attracting the visitors, investors and
customers that contributes in the variety and diversity of cities and towns as well as also
aids in improving the condition of communities.
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 Just because of these businesses, there is increasing rivalry in the market and for facing
these competition, they are increasing production level as well as also enhancing strength
of man power so that they can get competitive advantage over its rivals. In short, it
contributes in increasing productivity of the country as well as of the people.
 These enterprises create more development opportunities for the society because from
many years, there are increasing number of small business that enhanced the competition
in the market which gives stability to the economic recovery in UK.
 It also contributes in the development of local communities by doing some creative
things. These firms provide necessary resources or equipment to large company that is
more important for big enterprise. So, it also contributes in the development of large
organisations (McNamara, 2016).
 Start- ups and small enterprise contributes in the improvement of society by providing
financial resources that aids in improving living of standards of surroundings and if
population of the country will be developed then it will enhance economic condition of
the country.
If entrepreneurial activities or ventures are developing then it will contribute in the
development of society as well as of the country because developed business will provide more
work opportunities and will create full employment situation in the entire country that will bring
change in the economy of nation.
TASK 2
P5 Factors or characteristics that makes a successful entrepreneur
An entrepreneur is that person who carries out business activities in such manner which
contributes in earning profit. He provides goods or services to the society as per their
requirements so that their needs and wants can be satisfied (Giriuniene, Giriunas and Cernius,
2016). There are many factors or characteristics which make a person successful entrepreneur in
the market which are given below-
 Full of determination- An enterpriser should have unobstructed vision and goal so that
he can carry out business activities as per his decided goals. If an individual will not fully
have determined then he will not be able to attain its specified target.
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 Passionate- A businessman should have passion for learning new things because
innovative or innovative ideas aids to become a successful entrepreneur in the market. He
should be passionate towards his work because it will assist in attaining growth and
success.
 High confidence- Confidence is very important element because if a person has
confidence then he can easily understand any critical situation and can face that condition
easily and effectively. By having an impressive confidence level, the entrepreneur can
easily advance the effectiveness of work. It allows to ensure that long term sustainability
can be advanced effectively so that key goals and objectives can be accomplished.
 Risk taker- An individual can become a successful entrepreneur if he will be a risk taker
because in business environment, there occurs many critical situations that has to bear by
businessman. If he will not take risk then he will not be able to achieve its desired result
or outcome. By having an effective risk management aspects consideration overall
learning can be advanced which helps in managerial activities.
 Innovator- For becoming a successful entrepreneur, person should be an innovator
because people of the society want to take that things which have some uniqueness. So
for get the attention from the target market, businessman should adopt some innovative
ideas or things (Mengting and Zhang, 2015).
 Adaptable- For getting success in business, person should be adoptable so that he can
adjust himself as per changing environment. If an entrepreneur wants to become
successful then he should adopt changes so that he can serve to his target market as per
their requirement.
 Financially prepared- If an individual want to start his business then he should have
proper financial resources so that he can carry out his business ineffective and efficient
manner and without any disturbance (Badenhorst-Weiss and Cilliers, 2014).
If any person has above mentioned characteristics then surely, he will be able to become
a successful entrepreneur. So, a businessman should be a risk taker, innovator etc. that will drive
him on the way of success.
P6 Entrepreneurial personality which reflects entrepreneurial mind-set and motivational
Entrepreneur is that person who participates in the development of the society as well as
of country. While carrying out business activities, he must face many issues or crisis and also has
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to struggle for achieving the desired result or outcome. There is some motivation power which
motivates an individual for starting his enterprise which are given below-
 Family- It is the most essential element that encourage a person for starting his business.
For example- Every person has some responsibility towards their family that must full fill
by them in every condition and in this case, business is best option by which all liabilities
can be completed easily. And if an individual's ancestors run an enterprise then he also
has to carry out that operation because of family pressure.
 Lifestyle- It is another component that encourages an individual for starting a firm. If any
person wants to improve his lifestyle then he must start their own work that will aid in
maintaining income level and status in the society.
 Culture- It also very powerful factor for motivating the person for doing the business. If
in a country, there is a culture for doing business then every person must follow it and has
to establish his own enterprise.
 Personal motivation- There is many people who want to earn surplus, status and respect
in the society that can be achieved by starting their own undertaking because enterprise is
that only way by which people can gain respect as well money easily (Klikauer, 2017).
 Past experience- It is also an important component that assists in establishing a venture.
If an individual's past experience has positive impact then surely it will motivate or
encourage that person for starting their own establishment by which he can get
everything that he wants to achieve in future.
A good entrepreneur should be self-possessing and should not have any fear of his
surroundings. If he wants to get success in the market then he should be full confident that will
provide support in facing competition in the market and should also take risky decision because
it is said that more risk more gain if entrepreneur want to gain more surplus then he must take
risk (Sveinsson, 2013).
P7 How past experience or background can hinder or foster entrepreneurship
An entrepreneur is that person who takes risk by establishing an undertaking into new or
existing market for attaining desired result or outcome with in specified period. For becoming a
successful businessman, there are some characteristics like innovator, risk taker etc. that should
have in every person who wants to become a famous enterpriser.
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In UK, there was conducted a survey by which it is concluded that thinking level of an
enterpriser is affected by his family background as well as his experience. Every person has
some foregone experiences which may have positive as well as negative impact on the thinking
level of individual. Suppose if he has terrible experience earlier then he will not be ready for
starting his own venture and will also not be able to carry out business activities in an effective
and efficient manner.
If a person wants to get success in the market then he should analyse his past mistakes as
well as his core competency or capability that can be used in running a firm.
For example- In whole world, there are large number of entrepreneurs who are running
their business effectively and efficiently. One of them is Mark Zuckerberg who is a co-founder
of Facebook application which is used by people to interact with everyone throughout the world.
He is a person who got success at his young age. He got motivation from his family because his
father is also a good businessman so he has to talk with large number of clients through in the
whole world. Zuckerberg identifies that his father is facing problems while talking with clients at
global level then he introduces this application by which people can talk with everyone and
everywhere easily (Lester and Lipinksi, 2015).
For launching this application, he took risk and adopted some unique idea that's why now
he is a successful enterpriser in the entire world. So it is cleared that traits like risk taker,
innovator, confidence etc. supports in becoming successful businessman in the market.
CONCLUSION
Entrepreneurship is very important part for the development of economy as well as of the
society. From the above project, it is concluded that there are different types of ventures such as
lifestyle, survival who contributes in the development of country. If an individual wants to get
success in their field then he should some skills like innovator, risk taker, full confidence etc.
that aid in carry out enterprise activities in an effective and efficient manner. Small and start-ups
companies is very important because it improves the living standards of the society that provides
support in the development of country. There are many factors that affects the motivation and
mind-set of people like family, culture, lifestyle, past experience etc. that motivates an individual
for starting their own venture so that they can improve their lifestyle or standards.
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