Entrepreneurship and Small Business Management - Entrepreneur Ventures Types

Entrepreneurship and Small Business
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of entrepreneur ventures and their relation to typology.........................................1
P2 Differences and similarities between entrepreneur ventures............................................2
P3 How small businesses and micro businesses impact on the economy............................4
P4 Significance of start-ups and small business in growing of social economy..................6
P5 Skills, Traits as well as characteristics of successful entrepreneurs.................................8
P6 Entrepreneurial personality reflects the entrepreneurial mindset and motivation.............9
P7 Background and experience can foster or hinder entrepreneurs......................................1
CONCLUSION................................................................................................................................2
References........................................................................................................................................3

INTRODUCTION
Entrepreneurship can be defined as the process of designing, staring and operating of a
new business which is normally started as a small business. A person who starts a business is
called as entrepreneurs. In simple terms entrepreneurship is the willingness and capacity for
developing, organising as well as managing a business venture along by taking risks to make
profit (Hatten, 2015). Small business management is a process which entrepreneurs make use
while running their operations of the business. To run a small business it often requires that
entrepreneurs have wide knowledge and skills related to operate business successfully. This
report includes range of ventures types which might considered by entrepreneurs and also assess
the impact of small business on country's economy. Current report also includes the what is the
key aspect of entrepreneurial mindset and also includes the different environments which foster
and hinder entrepreneurship.
Entrepreneur: Entrepreneur is a individual who starts a firm with investment and take risks
with a hope of making profits.
Entrepreneurship: It is the process of running a business, it is also the ability of managing and
organising the business ventures to make profits.
Entrepreneurial venture: It means starting a new venture every day and helps in creating the
substantial wealth more than a regular business.
Enterprise: It is the another name of the business and this word is used to describe the actions of
an individual who takes initiatives by taking risks, investing a certain amount of money in order
to run a business.
TASK 1
P1 Types of entrepreneur ventures and their relation to typology
There are various types of entrepreneur venture which can be explained as below:
Established company: It is the company which is being officially approved or recognised as it
is already existing for the long-time in the market. For example M&S is the established company
which is the UK's renowned retailing company and has been existing for 135 years in the
business.
Small size social ventures: These are the ventures which are run by small firms or companies
which are established by social entrepreneur who seek to offer solutions in order to achieve
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sustainable or social objectives. Small scales social venture does not operate in large areas and
have limited resources. For example Community Service Volunteers (CSV) which lends a small
amount of money i.e. $25 to create opportunity for the people across the world.
Large scale social venture: large size social venture are the ventures which operate in various
countries of the world and have resources enough to offer social care services across the world.
A common example of large scale social venture is Red Cross which is approximate with 17
million volunteers, members and staff.
High growth firms: High growth firms are the firms which are growing rapidly than that of its
competitors and has broader economy (Venkataraman, 2019). A company comes under the high
growth firm when it generally have increased it annual revenues more than that of industry
average in a certain period. For example Apple is a high growth firm as it has been able to
increase its revenue by 20% in 2018.
Entrepreneur ventures relation with entrepreneurial typology:
Survival Firms: Survival firms are those firms which put their efforts to survive in the business
and for this they have to develop a proper survival strategy in order to cope up the challenges of
the business. These are the firms which does not have turnover more than £6.5million and
employees does not exceed over 50 in number for examples CafePod Coffe Co UK.
Lifestyle firms: These are the ventures which provide particularly a reasonable living to their
founders rather than taking risks which come with the prospects of high growth. Life style
business man normally starts up the business in order to achieve certain level of income or to
simply to enjoy a particular lifestyle for example Tim Ferriss is lifestyle entrepreneur which is
the number one poster boy for the lifestyle entrepreneur movement.
Managed growth firms: These are the firm which have managed to grow over the period of
time and is operating successfully in the market for example M&S is the example of managed
growth firms in UK which has managed to grow over long periods.
Aggressive growth firms: Aggressive firms are those firms which seek high capital potential
and these expect to grow at very faster rate in the stock markets for example Darktrace which
made a sale of £33m last year which is very impressive for the business which was founded in
2013.
P2 Differences and similarities between entrepreneur ventures
Similarities:
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One of the major similarities between entrepreneur ventures is that every businesses
venture starts with the creative idea. In order to start a new business venture it requires the
creative business in order to offer the products and services which stand different form others.
Another similarities between these ventures is that they require a start up investment in order to
initiate the business (Brush and Greene, 2015). For this these ventures have to take funds from
some ventures capitalist or investors in order to start up the business venture. One of the major
similarity between these ventures is that they have to go through constant innovation in order to
survive in the business. Also, the major similarity between these ventures at the initial stage of
business they have to sustain against large businesses which pose high competition to them.
Differences:
Basis of
differences
Established
company
Small size social
venture
Large size social
venture
High growth
firms.
Annual growth
rate
M&S has been
growing over the
years and its
annual growth
approximately
5% as compared
to last year.
CSV is also
growing and it
has started to
operate in various
parts of UK.
Red Cross has
found the
exponential
growth each and
its annual growth
is very as it keeps
on working in
various areas and
has been
innovating its
services.
Apple has also
found a huge
growth rate and
its growth is
about 20 %.
Managerial
focus
Managerial focus
of M&S is to
achieve long term
success within the
retailing industry.
Managerial focus
is serve the
various
communities in
UK by increasing
the number of
volunteers.
Managerial focus
is to serve
humanity across
the world.
Apple's
managerial focus
is to achieve
success through
innovations.
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Managerial Style Managerial style
adopted by M&S
is democratic
style.
In CSV there is
also supportive or
participative
managerial style
(Siegel and
Wright, 2015).
Red Cross has
also followed
participative or
supportive
managerial style.
Here in Apple
managerial style
adopted is
transformational
which is required
for making
innovations.
Organisation
structure
M&S has got flat
organisational
structure.
CSV also has got
flat organisational
structure
Red Cross has
functional
organisational
structure.
Apple has
adopted divisional
organisational
structure by
dividing its
organisation in
various
departments.
There are various types of entrepreneurial ventures like established, small size social
ventures, large size social venture and high growth firms (Oviatt and McDougall‐Covin, 2015).
The kind of entrepreneurship which existing in public sector is established company, small and
large scale social ventures has it has bee operating for public and its shares can be sold to public.
The entrepreneurship which comes under corporate sector is high growth firms whose aim is to
earn profits.
P3 How small businesses and micro businesses impact on the economy
Small businesses make huge contributions towards the local economies which is done
trough bring growth and innovations within the communities. Micro and small businesses in UK
help in stimulating a sustainable economic growth by generating opportunities for employment
for people who may or may not be employed in the large companies. There are three ways
through small businesses can contribute to the country like they provide people opportunities for
achieving financial independence, create employment opportunities within the country which
will increase the income level of people and also encourages innovation. Micro or small
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businesses are considered as the backbone of UK's economy which drives the growth and helps
in the expansion of markets so, it can be said there is a huge contribution made by the small and
micro business in the country. In simple terms small businesses are good for UK's plc which
represent the 99% of businesses (Ramadani, and et.al., 2015). Due to small businesses UK is
confident that its economy is improving more confidently across the UK. In 2018 there were
about 5.6 million small businesses in the beginning and small business is accounting 99% of all
the private sectors in UK and total employment in Small and micro businesses is 16.3 million
which is the total 60% of private sector employment in United Kingdom and the combined
turnover of small business is £2.0 trillion which is the 52 percent of UK's private sector turnover
so, these figures shows that how much small and micro businesses contribute towards the UK's
national economy.
Illustration 1: Economic Review of Small and Micro Businesses
(Source: Small Business, 2019)
From the year 2000 to 2017 there has been a sustainable growth in the business
population every year and now there has been more than 63% businesses in UK since 2000.
Researchers a with the view that small and micro businesses are producing the dis-proportionate
amount of growth in the economy which is proving beneficial for the country's development.
Now, these small businesses have become an important factor for the economic growth of the
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country as they contribute maximum towards the country's economy and are still getting better
with it. Small and micro businesses have a strong ability in order to boost the country's economy
by generating employment opportunities, expanding the tax base and leading to innovations. Not
only this they also contribute towards increase in the level of competition which is the best way
for increasing the economy of the country. These business has also led to the development in
UK's various sectors like manufacturing, ICT services and agricultural sectors which form the
basis of the country's economic growth. So, it can be said that small and micro businesses helps
to bring economic stability in the country and can be considered as engine of growth which
allows the citizens as well as the government to acquire the products and service which they
need to grow.
P4 Significance of start-ups and small business in growing of social economy
Large businesses may dominate the stock markets but it is the small business as well as
start-ups which keep the economy moving rapidly. Small businesses and start-ups are vital for
the growth of social economy in the country and its importance can be explained below:
Competition: As small and start-ups increase the level of competition which results in racing of
the organisations towards generating huge revenues and profitability which is considered as the
best way for improving the social economy within the country (Bruton, and et.al., 2015). Also,
the agile start-ups bring innovations by introducing new technologies which fast which can
increase the levels of competition.
Local hiring: As small businesses operate locally so, they give preference to hire the local
people which help them in increasing their living standards as these businesses provide huge
employment opportunities continuously for the local people. Each and every years there are
start-ups which bring the huge opportunities for the local people, so, small businesses and start-
ups tend to increase high employment rate within the nation.
Innovations: Small businesses and start-ups has the ability to produce more patents than large
organisations, which is mainly because employees are given freedom to innovate as well as work
independently and even take decisions. It is also the reason that small businesses attract workers
who are creative and think creatively when they get the opportunities for solving the business
problems by using the technology. As, most of the small businesses lack the resources unlike
large scale businesses, employees become more creative and make innovations.
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Diversity: Small businesses are more flexible and can be started by anyone, so it is the factor
which makes small businesses and start-ups more diverse in nature in the culture, functioning,
form and their potential as compared to large businesses. Having the greater diversity in the
economy it is easier to withstand the tough conditions.
Meeting the local purpose: One of the major importance of small businesses and start-ups is
that they help in meeting the local purpose of the communities like employment, increasing the
standard of living (Wu and Huarng, 2015). They also serve the community in various ways like
proving donations and building schools, parks etc. Small sized businesses also help in keeping
the local economies strong which can help in the growth and development of communities across
the nations. Also, small businesses help in strengthening the local communities as workers spend
their earnings on the products and services at home.
Illustration 2: Business Impacting UK Economy
(Source: How does small businesses impact UK Economy, 2018)
It can be interpreted from the above figure that it is small scale and medium scale
business which has been contributing towards the economy as there are most of the benefits
which are provided to employees in small and medium scale businesses as compared to large
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scale business (Mimin, 2018). So, it can be said that overall it is the small and medium scale
businesses which make effective contribution towards the economy and society.
P5 Skills, Traits as well as characteristics of successful entrepreneurs
In order to be a successful entrepreneur one should posses the traits and skills of
successful entrepreneurs, the characteristic traits and skills of successful entrepreneur can can be
explained with the help of successful entrepreneurs which are:
Bill Gates: Bill Gates is the founder of Microsoft Corp., he has always been a visionary
entrepreneur who sparked the computer revolution in the world and is the one of the most
successful entrepreneur in 21st century. There are some characteristic, traits and skills possessed
by Bill Gates which are different from manager are explained below:
Characteristic:
Bill Gate has always been confident, and he has always taken decisions confidently which has
brought positive results for him. So, it is important for entrepreneurs to be confident towards its
approach (Rey-Martí, Ribeiro-Soriano and Sánchez-García,, 2016). One the other manager have
to adopt the negative approach as manager are not always willing to take risk they are bound to
take risks.
Traits:
One of the major trait which is possessed by Bill Gates is that he has been a self starter as he has
always initiated tasks and believed in himself and it is the trait which has made him successful. It
is not the traits of various business managers to start up the initiative as manager is bound to take
command from the higher management which may restrict their traits to certain level.
Skills:
Bill Gates has always been courages and risks taker it is one the best skill to be possessed by the
entrepreneur in order to operate a successful business. Manager can take risks of their free will
but are bound.
Mark Zuckerberg:
Mark Zuckerberg is the youngest successful entrepreneur of the 21st century, he the co-
founder of the one of the largest social networking app Facebook. His characteristic, traits and
skills can be differentiated from the manager as below:
Characteristics:
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One the major characteristic of Mark Zuckerberg is that he always looks forward, he has the
ability to anticipate trends as well as opportunities which has made him a successful
entrepreneur. On the other hand manager are hardworking they work hard against the which are
assigned to them.
Traits:
One of the major trait which is possessed by Mark Zuckerberg is that he has high level of
creativity, he is creative in nature due to which Facebook has tasted success, but managers are
versatile in nature they are multitasking in nature also they are creative but it is limited.
Skills:
 Mark Zuckerberg has high problem solving skills as he is able to provide the best
solution to the problems faced but manager have high thinking skills as they provide
suggestions to entrepreneur whenever any problem is faced by entrepreneurs.
P6 Entrepreneurial personality reflects the entrepreneurial mindset and motivation
Entrepreneurial mindset means a specific state of mind which pushes an individual
towards the entrepreneurial activities as well as outcomes. It is the personality of the
entrepreneur which reflects the entrepreneurial motivation and mindset. A personality traits of
entrepreneur includes the abilities, characteristics, attitudes, motives which shape the
entrepreneurs actions and experience (Wegnerand Koetz, 2016). The personality traits of the
entrepreneurs can boost him/her in motivating to perform various actions and tasks which can
lead to the way of success. Entrepreneur's personality play an important role developing a
mindset and motivated them to perform actions and take risks. It has been found that personality
score of entrepreneurs are very high as compared to those of manager, so this is the reason
entrepreneurs are open-minded, open to new experiences and are more dutiful, energetic towards
both material and social world. Different entrepreneurs have got different personality traits so, it
how they to different situations differently and it depends of the personality to what extent an
entrepreneur is motivated in order to carry out their entrepreneurial functions. For example Mark
Zuckerberg's personality traits is that he is creative so, this is the reason behind the Facebook app
has gained popularity across the world as people found it creative to get connected with others.
Entrepreneurial can possess various characteristics like one of the major characteristic of
successful entrepreneur is that he/she should be self motivated, as self motivation can act as
driver for achieving success. On the other hand it has been argued that an entrepreneurs should
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be risk taker they should be able to take risks which can help them to become a successful
entrepreneurs.
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P7 Background and experience can foster or hinder entrepreneurs
Mark Eliot Zuckerberg is one of the most famous and popular successful entrepreneur in
the world, he is the chief executive and chairman officer of Facebook. He belongs to good
family background which is one of the main reason that foster his career. His mother is
psychiatrist and have the good education which reflect on Mark Zuckerberg personality and
motivate them to become as successful businessman. His mother inspire him to grow in
professional and personal career and motivate him to do bigger than expectation from others.
With the help of family support, he efforts to make some innovation and try to develop their
interest in computer when he was only 12 year old. His parents support him to achieve their
desired goals and hire private c computer teacher for him to come to house once in a week and
teach Mark all the essential things related to computer and new technologies which is beneficial
for them and helps to growth their career in Computer. As belong to educated family and great
background he focuses on getting the best education which foster him and help to become
successful entrepreneur. Mark Zuckerberg studied more and more in context of gathering more
knowledge about computer and latest technologies, he studied at Phillips Exeter Academy for
further education. He get the best experience while studying in academy and after graduating
from Exeter he dropped out of college to devote itself to his new organization Facebook full
time.
William Bill gates, is principal founder of Microsoft corporation, he is well-known
person and CEO and Chief software architect in company. He has the great educational
background as well as good and educated family members. His father was prominent lawyer and
his mother served on Board of directors for United way and first interstate BancSystm, as it
clearly defines that above information foster him to become great and successful businessman
(Obschonka, 2015.). When he was 7 year old his home was damaged by the rare tornado, he
observed that his parents and family members suffer a lot, and they want him to become a lawyer
which is not possible because he wants to do something more and different from other. He
decided to work hard and achieve their goals and his family encourage him to drive toward
success and motivate him to perform well as it foster William Bill Gates to become successful
entrepreneur. He is national merit scholar when he graduated from Lakeside academy, he is a
brilliant student. William does not have the definite study plan, but his family support help to

reach their aims and helps to make him successful businessman and world-famous entrepreneur.
When he was starting his own company his parents also support at that moments which foster
him and help to take better decisions.
From above It has been cleared that entrepreneur traits and background influence person
and helps to make them successful entrepreneur.
CONCLUSION
Present report concludes that there are different entrepreneurial ventures which are
operating UK and they also relate to different typologies, also there are some differences as well
as similarities between entrepreneurial ventures. Present report also concludes that small
business play an significant role towards the contributions in National economy as there is a
rapid growth in the small business sectors. Also, small businesses have major impact on the
social economy of the country also it can be concluded that there are various characteristics,
traits and skills of entrepreneur which can result in the success of entrepreneurship. Also,
entrepreneurial characteristics, skills and traits simply vary form business managers. This report
also concludes that the personality of the entrepreneurs can have the impact of the motivational
factors and mindset of entrepreneurs.

References
Books and Journals
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Management. pp.1-5.
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Hatten, T. S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Obschonka, M., 2015. ACE research vignette 037: Bill Gates’ mug shot: Is there a secret link
between rule-breaking, crime, and entrepreneurship?.
Oviatt, B. M. and McDougall‐Covin, P., 2015. International entrepreneurship. Wiley
Encyclopedia of Management. pp.1-3.
Ramadani, V and et.al., 2015. The context of Islamic entrepreneurship and business: Concept,
principles and perspectives. International Journal of Business and Globalisation. 15(3).
pp.244-261.
Rey-Martí, A., Ribeiro-Soriano, D. and Sánchez-García, J. L., 2016. Giving back to society: Job
creation through social entrepreneurship. Journal of Business Research. 69(6). pp.2067-
2072.
Siegel, D. S. and Wright, M., 2015. Academic entrepreneurship: time for a rethink?. British
Journal of Management. 26(4). pp.582-595.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal Ideas
for the Next Twenty-Five Years of Advances. (pp. 5-20). Emerald Publishing Limited.
Wegner, D. and Koetz, C., 2016. The influence of network governance mechanisms on the
performance of small firms. International Journal of Entrepreneurship and Small
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Wu, C. W. and Huarng, K. H., 2015. Global entrepreneurship and innovation in management.
Online