Entrepreneurship & Small Business Management

This report provides an understanding of entrepreneurship and different types of entrepreneurial ventures. It explains the similarities and differences between entrepreneurial ventures, the impact of micro and small businesses on the economy, and the traits of an entrepreneur. The report also discusses the importance of small businesses and business start-ups to the growth of the social economy. Study material and solved assignments on Entrepreneurship & Small Business Management are available at Desklib.

Entrepreneurship & Small Business
Management

Contents
Contents...........................................................................................................................................1
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1: Explanation of different types of entrepreneurial ventures..................................................2
P2: Explanation of the similarities and differences between entrepreneurial ventures...............3
M1: An understanding of entrepreneurship in both the public and corporate sector.................5
D1: Scope, development and growth of entrepreneurial ventures............................................5
TASK 2............................................................................................................................................6
P3: Interpretation of relevant data and statistics to illustrate how micro and small businesses
impact on economy......................................................................................................................6
P4: Explanation of the importance of small businesses and business start-ups to the growth of
the social economy......................................................................................................................6
M2: Differences between small, medium and large businesses make to the economy...........7
D2: Impact of small business on different economy levels.........................................................7
TASK 3............................................................................................................................................8
P5: Explanation of traits of entrepreneur and how they differ from trait of manager.................8
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset.........................9
M3: Different lines of argument relating to entrepreneurial characteristics...............................9
D3: Characteristic traits, skills and motivational drivers of successful entrepreneurs,.............10
TASK 4..........................................................................................................................................10
P7: Explanation of how background and experience can hinder or foster entrepreneurship....10
M4: Link between entrepreneurial characteristics and the influence of personal background
and experience to specific successful entrepreneurs.................................................................11
D4: Effect of personal background and experience on business organization..........................11
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................12
1

INTRODUCTION
Entrepreneurship is a way to start up new innovative business. It is essential for any
economy as it will provides revenue, employment, goodwill, and strong position in world
economy. To understand the concept of entrepreneurship this report has been prepared. In this
report meaning of the term entrepreneurship and different types of venture has been describe
clearly. This report also includes importance and role of small, medium large and social venture
in an economy .Characteristics of successful entrepreneur and how personal background and
experience will help in provide support and overcome conflicts for entrepreneurs has been
identified.
TASK 1
P1: Explanation of different types of entrepreneurial ventures
Entrepreneurship: A systematic procedure of developing, launching and running a new
developed entity with its risk factors is known as entrepreneurship. In other words
willingness of starting new business in market economy for economic growth purpose.
Entrepreneur is a person who take the risk of starting new venture. There will be different
kinds of venture an individual can established, following are mention above:
 Small business venture: These types of ventures have small target market are and
their enterprises start business with sufficient financial resource, they did not have
large number of employees. Entrepreneurs developed small business only to lives
their life easily. Example of small business are, hair saloon, small firms, etc.
 Scalable start-up venture: Theses kind of business enterprise established with the
vision that their new innovative ideas and technology can change mind set of the
world and their products are able for revolutionary change in the world. They does
not have large amount of funds they also run their business in small but wider area
then compare to small ventures (Ferreira, Fernandes, Peris-Ortiz, and Ratten,
2017).
 Large size venture: Entrepreneurs of large scale venture have sufficient fund of
money they provides new products and services according to the demand of their
customers, they have large target market area. Example of these type of venture are,
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Apple, Samsung, these venture change and innovate new products to their
customers.
 Social entrepreneurship: These types of venture are established for the purpose of
identify problems facing by society and introduced those products and provides
services through which they can solve or overcome problems faces by society.
These are non profitable venture and they are developed for enhancing moral value
and ethics in world economy.
P2: Explanation of the similarities and differences between entrepreneurial ventures
There will be lots of similarities among all ventures and also they have different feature
from each other all are mention below:
Particular Small venture Scalable start-
up
Large size
venture
Social venture
Aim and
objective
Small venture
are established
for fulfil only
their family
demands thus
they did not
have any kind
of vision or
specific aim,
their main
purpose is to
earn profit and
maintain
stability in
market.
Main aim of
developing
scalable
organization is
to provide new
innovative
products to
market area
and enhancing
growth. (Jung,
and Jung,
2014)
Large size
organizations are
established to
increase their
target market
area and
provides new
innovative
features in
existing products
or new products
and service to
their potential
customers for
achieving top
position in
market area.
This type of
venture are
established for
to fulfil the
objective of
social welfare
in economy for
this they
provide high
quality of
products and
service to their
customers.
Rate of risk Risk rate in Rate of risk is In large business Rate of risk in
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small size
venture are
comparatively
low but they
have face high
rate of
competition
within market
area.
also high in
theses type of
venture as they
invest large
financial
capital thus
their
expectation as
well as risk
return is high it
totally depends
on the
customers
whatever they
accept new
product or
reject it. They
have high
pressure of
building their
position in
market
(Millsteed,
Redmond. and
Walker, 2016).
venture rate of
risk is
comparatively
low , they did
not have high
risk as they
already have
strong goodwill
and due to large
financial fund
they can even
mange loss.
Their products
brand value is
high thus they
already gain
profits by
launching new
products.
social
enterprises is
not high as they
have not
competitors and
their main aim
is to provide
social benefit
thus they have
strong support
of government
also.
Number of
employee
In small
ventures
maximum
number of
employees are
50.
In these types
of venture
number of
employees are
more than 100
but not cross
In large
entrepreneurship
ventures number
of employees are
more then 1000.
Number of
employees
depends on size
of the
organization.
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500 limit.
Organizational
hierarchy
These types of
ventures does
not follow
formal
organizational
structure, due to
the mostly have
sole
proprietorship
or partnership
venture.
They follow
formal
structure of
corporations or
some time
partnership
firm.
They have
public and
private limited
organization,
their hierarchy is
complex.
Theses built
structure of
trust
organization.
M1: An understanding of entrepreneurship in both the public and corporate sector.
Public sector: Theses types of business organizations are wholly owned by government thus
government provides them full support regarding research ad development of new innovations ,
they also get tax benefits mostly large ventures are set up as public sector organizations or social
trust their main aim to provide essential good quality of services and products to public.
Private sector: It also known as corporate sector, share capital of these types of organizations are
distributed by individual or with part of government. Mainly scalable and small and large size of
entrepreneur venture established in private sectors. These are owned by individual or group of
individual thus their main objective is to gearing profit and maintain their strong position in
market (Naldi, Achtenhagen, and Davidsson, 2015).
D1: Scope, development and growth of entrepreneurial ventures.
In order to live good life individuals always tries to develop and innovate something new
with whom their life become easier and they can provides more benefits and satisfaction to
their customers. Various types of ventures are establish for providing products and services
to their customers, all have different vision, objective and growth criteria, small large,
social and scalable entrepreneurship venture play essential part in economy as all venture
give help bin increases GDP of countries with all these enterprises they gave effective
contribution in development of country’ s growth rate.
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TASK 2
P3: Interpretation of relevant data and statistics to illustrate how micro and small businesses
impact on economy
Small and micro size business organizations play essential role in UK economy. According
to research data it has been identify that in UK more than 5 million number of micro
enterprises have been set up and 5.7 million small business organization situated in this
country which generate almost 60 % revenue for the country , these provides help to frown
GDP value of the country. These organization generate average of 50 million profits from
their business activites and they provides 51 % of revenue in private sector. In United
Kingdom small and micro enterprises are main source of earning they enhance export
import market. According to research that theses venture provides more than 48 % of
employers in this country. They have directly and positively impacted on UK economy.
P4: Explanation of the importance of small businesses and business start-ups to the growth of
the social economy.
Small and start up business organizations are vital part of economy of a country, they play
essential role in development and growth of the country. Start up companies are identify
as those companies which have high potential and ambitious to change the economy with
providing new products. At pr4esent time country especially in UK government focus on
planning those schemes which help in enhancing people to their own business venture it is
because it is best way to achieve individual as well as national goal of providing better life
style and welfare among so city. Following are the importance of small and start up
venture in running economy (Mugler, 2017).
 Innovation: Mostly new ventures are started with new idea and introduce new
technique and products within market place, it will help in enhancing capabilities of
individuals and society promote skills of individuals.
 Generate new job: Small business create wider opportunities for unemployed
people thus government of UK launching new schemes to provide help to
unemployed people to establish new venture.
 Economic growth: It will help in increasing growth rate of a country as it generate
employment and they help in enhancing growth rate.
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 Enhancing competition: Small business enterprises are easy to formulate and it
does not require large financial amount thus it also create competition risk return is
high in these type of venture but with high competition rate, it will positively
impact on revenue of country.
 Promote research programme: New entrepreneurial start ups can enhancing
research and development program, individuals get motivated to research new
inventions through they can provide better facilities to public.
 Increasing value of proactively: Start up ventures change perception of society
with newly innovation program, now population of UK is realizing that they need
to work on themselves and they have responsibility to contribute for country
M2: Differences between small, medium and large businesses make to the economy.
In United Kingdom economy both small and medium as well as large business
organization play importance role. Their contribution is effective and their economy is run
because of revenue generated by these organizations. Small and medium enterprises have
more number then compare to large organization and they help in generating employers
and innovation of new technologies. Small and medium size enterprises also have benefit
of taxes and they create awareness among customer by providing high quality of products.
These also help in creating social and ethical value. On the other side, large organizations
help in increasing GDP rate by increasing foreign trade they will help in established strong
position of UNITED KINGDOM in international trade market. They contribute in
corporate social responsibility scheme through which government can start up welfare
programme, large organization also help in attracting large area of customers a through
which government earn high revenues. Thus small and large all venture have play their
role and fulfil responsibilities to enhance economy growth rate of the country
(Hadjimanolis, 2016).
D2: Impact of small business on different economy levels
Small business play differ role in different level of economy. At local level they provides
best quality of service and products to their customers so they can fulfil their needs and ants,
as well as they these organizations also help in generating employment and help individuals
it run organization in which they need not to invest large amount of capital, they also
increase competition level. On the other side at national level contribution of these small
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size industries help in generate revue at large scale, with their contribution revenue rate also
increase and it also improve living standard of people, now they live better life style. At
international level role of small size enterprise may not wider as compare to large
organization even though many organizations export their product which will help in
creating revenue from foreign countries and also increase inflow of foreign currencies in
UNITED KINGDOM.
TASK 3
P5: Explanation of traits of entrepreneur and how they differ from trait of manager
Many people think that manger and entrepreneur are same but there will be some
characteristic of entrepreneur which make him different from business manger, Elizabeth and
Tom Mercer both are work for business organizations but their unique skills make them
successful entrepreneur, following are the traits of an entrepreneur:
 Motivated: It is essential for an entrepreneur to be self Entrepreneur is a person
who has the courage to take risk and start new business.
 Innovative: For being an entrepreneur individual must have ability and skills of
generation of new idea and invention of new feature and technique which are
different from others.
 Risk taker: It is not easy to start up new business many risk had been taken thus
an individual only become an entrepreneur when they are able to take risk of
uncertainly (Katz, 2014).
 Visionary: An individual motivated only then they are able to influence other
people.
 Managerial skills: They must have effective managerial skills, time management,
ability to coordinate and manger people, and resource only then they achieve
success.
 Communicator: They must have attractive communication skill it will help in
attract people towards them and government also give them benefits when they
are able to influence them for help.
An entrepreneur can do work of manger but manger cannot take place of entrepreneur as
they don’t take risk for their company and they are not dream foe vision they only collect
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their responsibilities. Thus personal’s need some unique inter personal skills to become
successful entrepreneur.
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset.
Entrepreneurial personalities are important for an individual as theses help in set up new
business, self motivation is essential trait which an entrepreneur must have to built an successful
organization. From the case studies it has been analysis that Tom Mercer and Elizabeth both are
self motivated and have different mind set from others, theses personality traits help them to
generate idea and start a new venture both does not have sufficient resources still their self
motivation and future vision motivate them to take risk, these personalities also encourage them
to maintain patience in unfavourable situation arise in business. Thus it is essential for
entrepreneur to become self motivated and have clear mind set, this will help in implementing
strategic polices to achieve business target easily and overcome problems and conflicts aeries
within the business organization. They need to work according to the expectations of customers
to fulfil their demand they always try to improve their product qualities with introducing new
feature and technologies, entrepreneurial traits help in analysing the demand of customer, what
they tough, how their get satisfaction etc. Entrepreneurial personalities reflected motivation and
mindset of entrepreneur, they work according to their mind and things which motivated and
attracted them, theses characteristic help them to maintain positioning market and generate more
revenues as compare to their rivalry companies(Dana, 2015).
M3: Different lines of argument relating to entrepreneurial characteristics.
Personality traits of an entrepreneur is have similarities with leadership traits. Just like
leader, entrepreneur have responsibility to run a business organization, they need to set
business idea they need to collect resources, funds for initiating the business idea, just like
leader they motivate and influence their employers with effective communication skills.
Leader is a person which has follower, who think for future an entrepreneur also need
visionary skills only than they can make innovative ideas, they need to communicate with
their stakeholders, and also need to take risk all these skills are same as a successful leader
have. Elizabeth have excellent interpersonal skills she is self motivated thus she take the
decision to give resign and start her own business venture and run it she is risk taker thus
her name published as one of the successful younger entrepreneur of United Kingdom.
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D3: Characteristic traits, skills and motivational drivers of successful entrepreneurs,
To become successful entrepreneur an individual needs to have same interpersonal traits which
make him different from other. Elizabeth Gooch is founder of EG solution she started work in
HSBC bank then she work for consultancy service, she is self determine and have visionary sight
thus she decide to open her own company, she takes risk and start it at small level, she influence
people with their communication skills, she also have managerial skills thus when their company
suffers from losses she take right decision she invent new software to represent their company
and with her skills the company earn more than millions of profit in years.
Tom Mercer is founder of MOMO, their company has more than 15 branches in London and
they provide breakfast product to their customer, Tom Mercer is risk taker he take risk and work
on his visionary idea, he had excellent innovative skills thus he convert his problem into an
innovative idea and start business, he take risk and have excellent decision taking skills which
make him successful entrepreneur.
TASK 4
P7: Explanation of how background and experience can hinder or foster entrepreneurship
Personal background act as support system for an individual, it consider family relations, friends
and financial background. To become a successful entrepreneur an individual needs to have
support from their family it will help in encouraging them and in difficulty times friends and
family generates positivity in entrepreneur. Having financial background is also help in decrease
risk of loss and also give strong ability to start venture, it will also help in exploring new
opportunities. Experience also help entrepreneur to face different situations it is well said that
the more an individual have experience of life the greater they have chance of success.
Thus personal background and having experience both play essential role for an entity to run
business organization successfully. Elizabeth and Tom both have strong personal back ground
even though they have lack of finance but they gain motivation from their friends and it will help
them to cover up all problems.
M4: Link between entrepreneurial characteristics and the influence of personal background and
experience to specific successful entrepreneurs.
Entrepreneurial characteristics and personal background will help individual to start up new
venture. Elizabeth innovate new software o which give operational intelligent and help provide
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consultancy service, they have visionary thought and excitement of launching new products to
provides better facilities for customers, they have great support from their family and in young
age she is able to start new venture even though she suffers from losses due to their new projects
but her experience and capabilities of analysing threat and opportunities in market help their
organization to overcome overall problems successfully.
Tom Mercer also start their venture in London he has great courage thus he left his job from
university and to fulfil his mission he invested in an small business. He had good support system
his friends help him during opening of stall and breakfast product, and also give suggestions as
customers perception. They also help them to open their stalls in different area of London, just
because of strong personal background is able to run successful business even in recession
period he take risk and start new business with dealing with retailers his life experience and inter
personal skills of entrepreneur help him to become successful entrepreneur (Elhem, Ezzeddine,
and Boudabbous, 2015.).
D4: Effect of personal background and experience on business organization
This statement is true, personal background and experience positively and negatively impacted
on company as they may help in enhancing motivation for entrepreneur but on the other side
many enterprise suffers looses due to taken wrong decision .,
CONCLUSION
From the above analysis it has been concluded that individual can invest their money for
start business enterprises, there will be small, medium, social and large enterprise are
categorised. All play essential role in developing economy and enhancing growth rate by
providing employment and generating revenue. To become successful entrepreneur
personals need to have some inter personal skills and they also need to have strong personal
background in order to achieve their visionary goal.
REFRENCES
From books and journals
Ferreira, J. J .M., Fernandes, C. I., Peris-Ortiz, M. and Ratten, V., 2017. Female
entrepreneurship: a co-citation analysis.International Journal of Entrepreneurship and
Small Business,31(2). pp.325-340.
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Jung, C. H. and Jung, D. H., 2014. The Effects of Strategic Orientations on Company
Performance and the Moderating Role of Entrepreneurship in Small-Medium Sized and
Ventures Manufacturing Firms. The Journal of the Korea Contents Association, 14(7).
pp.468-479.
Millsteed, J., Redmond, J. and Walker, E. A., 2016. Small business ownership for occupational
therapists: Key factors for success. International Journal of Entrepreneurship and Small
Business, 27(4). pp.425-440.
Naldi, L., Achtenhagen, L. and Davidsson, P., 2015. International Corporate Entrepreneurship
among SME s: A Test of S tevenson's Notion of Entrepreneurial Management.Journal
of Small Business Management, 53(3). pp.780-800.
Mugler, J., 2017. The climate for entrepreneurship in European countries in transition. The
Blackwell handbook of entrepreneurship. pp.150-175.
Hadjimanolis, A., 2016. Perceptions of the institutional environment and entrepreneurial
intentions in a small peripheral country. International Journal of Entrepreneurship and
Small Business, 28(1). pp.20-35.
Katz, J. A., 2014. Education and training in entrepreneurship. In The psychology of
entrepreneurship (pp. 241-268). Psychology Press.
Dana, L .P., 2015. Indigenous entrepreneurship: an emerging field of research. International
Journal of Business and Globalisation, 14(2). pp.158-169.
Elhem, B .F., Ezzeddine, B. M. and Boudabbous, S., 2015. Does entrepreneur dispositional
optimism bias affect small firms' technical efficiency. International Journal of
Entrepreneurship and Small Business, 24(3). pp.302-321.
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