Entrepreneurship and Small Business Management

This report covers different types of entrepreneurial ventures, their relation to typology of entrepreneurship, similarities and differences between entrepreneurial ventures, the impact of micro and small businesses on the economy, and the importance of small businesses and startups for the growth of the social economy.

Entrepreneurship &
Small Business
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types of entrepreneurial ventures and explains how they relate to typology of
entrepreneurship .........................................................................................................................3
P2 Explore the similarities and differences between entrepreneurial ventures ..........................1
Economic importance of entrepreneurship.................................................................................1
TASK 2............................................................................................................................................3
P3. Interpret and access data and statistics to illustrate how micro and small business impact
on economy. ...............................................................................................................................3
P4. Importance of small businesses and business start-ups to the growth of social economy. ..4
TASK 3............................................................................................................................................6
P5. Characteristics traits and skills of successful entrepreneurs that differentiate them from
other business managers. ............................................................................................................6
P6. How aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset.
.....................................................................................................................................................7
TASK 4............................................................................................................................................8
P7. How background and experience can hinder or foster entrepreneurship. ............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Entrepreneurship and small business management provides learning experience ton
students who are starting new businesses and obtain employment in growth oriented small
businesses. Entrepreneurship is a heart of every business. Large company are started from small
businesses by an entrepreneur. Entrepreneurship and Small business management are designed to
build various entrepreneurial skills step by steps. Every business is needed entrepreneurial just to
survive. Whether it is a small or large businesses. Entrepreneurship skills are demand in
established companies. Entrepreneurs are the one in a market who takes risk and expand their
own assets into the business concern and individual ventures (Akpo and et.al., 2020). This report
covers two parts in which different types of entrepreneurial ventures are mention and how they
are relate to typology of entrepreneurship. Then it covers similarities and differences between
entrepreneurial ventures. Discussion of micro and small business impact on economy. Then it
explains importance of small business. Also this report covers case studies of two cases. These
are Elizabeth Gooch and EG Solutions PLC and Tom Mercer and MOMA Foods (“MOMA”). It
determines the characteristics of successful entrepreneurs. And this is about entrepreneurial
mindset.
MAIN BODY
TASK 1
P1. Different types of entrepreneurial ventures and explains how they relate to typology of
entrepreneurship
An entrepreneur is an individual or person who starts and runs a business with restricted
resources and takers all risk and rewards of his business venture. The businesses plan is complex
new innovation, product and service. Entrepreneur ventures target high rate of returns ad high
level of uncertainty. Entrepreneurship is similar like entrepreneur in business organisation. They
are generally highly self motivated and proactive and action oriented. They are one who easily
take all decisions regarding business activities and product innovation (Atkinson and Lind,
2018). Entrepreneurship refers to the development and management of business ventures in order
to gain profits by taking various risks in this corporate world. There are various types of
entrepreneurial ventures. These are discuss below:
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 Entrepreneurs: Entrepreneur means to undertake. He is the one who operates new
enterprise or venture and assume some risks associated with that. He is a dealer who
purchases means of production to combine them with marketable products.
 Serial entrepreneurs: Serial entrepreneur is the one who starts one business after
another or multiple businesses at a same time. It is associated with that person who starts
a single business and runs all day to day activities of business operations until he gets
retires (Borchardt and et.al ., 2020).
 Intrapreneur: Intrapreneur is the corporate entrepreneur who has come into the force in
large organisations. They brings new innovative ideas and products and services that are
to be used in business operations. Intraprenuers are denoted as a dedicated efforts that can
bring valuable assets by an organisation by inspiring others.
 Owner manager: They are the one who manges and establishes principles for the
organisations to achieve their personal goals. The business is considered as a primary
source of income and also it consumes time and resources of owner managers. They have
significant control over the day to day operation or activities of a business.
A small scale industry is the essential sector for economic growth because it provides
most fascinating progressive methods. There are other various types of organisation in an
economy these are related with entrepreneurship:
 Micro organisation: It is concerned with small scale organisation as these are supported
by micro approval. They are generally managed by small entrepreneur who takes his all
risks and rewards. It may become a large source of earning.
 Medium- size organisation: These organisations are the one who consist of staff office
and other staff members. Medium size enterprise are the one who are less then larger
organisation. They have managers and other staff. And they focus on all business
activities and there achievement of personal and organisation goals (Bruton, Zahra and
Cai, 2018).
 Large- size organisation: Larger size organisation have a fixed life cycle and they have
various stakeholders of the company. They produces and sells those products and
services which are demanded by customers and peoples in the market. They also focus on
CSR activities and they have large research ad development team.
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P2 Explore the similarities and differences between entrepreneurial ventures
According to studies entrepreneurs are contributed to economic development, they have
problem solving skills such kind of qualities of doing things in a progressive ways makes them
different from regular small businesses. Entrepreneurship is the foundation of economic growth,
this is a catalyst form for socio- economic transformation (Buffa, Franch and Rizio, 2018).
Economic importance of entrepreneurship
 Employment generation – Is a process of social development or creating a opportunit of
job to their nation.
 Economic independence- It is defined as division of labour and specialization in which
participants belong to a trading network in any economic system in the hope of obtaining
products.
 Innovations in enterprise- This process is known as business to business where multi
channel media focus on strategy, big data, digital finance, operations.
 Improvement on national income – this process improves different kinds of productive
sectors or productivity.
Factors that affect entrepreneurship
Technology factors are given below;
 Advanced technology
 making collaboration between universities and industry
 Research funding
Economic factors are given below;
 Income level
 Tax rates
 Interest rates
 Standard of living
The entrepreneurial ventures are usually based on business structure, therefore there are
3 types of ventures for e.g. private enterprise, social enterprise, public limited enterprise (Doh,
Tashman and Benischke, 2019).
Private limited enterprise -They have separate legal personal bank account and identity from
the owners. In this enterprises directors are main ones and usually they have only few
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shareholders thus they cannot sell their share publicly in the market, and their important aim is to
maximize all profits and also providing transparency while financial reporting.
Public limited enterprise – These enterprises are owned by private individual and even
they do have separate legal bank account as well as separate legal identity from owners, and even
they have limited accountability with that they have thousands of shareholders for which they
conduct an annual meeting for decision making their purpose is to maximize company value and
shareholders.
Social enterprise – The main aim of social enterprises is to maintain all the balance
activities which provides social goals and financial benefits, and also their main purpose is to
maximize benefits to the community (Eller and et.al., 2020) .
Similarities and differences between entrepreneurial ventures based on
 Business structure – This statement explains that private and public limited
enterprises ,they are treated as separate legal unit from their owners. It is very challenging
for private limited because they can not sell their shares publicly in the market and on the
other side public limited can. The private and public limited they both put their profits to
maximization for their important goals but social enterprises important aim is to serve the
community.
 Size – Small and micro businesses they both have similar aim is to survive in the
market, only survival is the main goal for them. All types of large businesses do not
worry about their capability to survive in the market but they want to take control over
market or shares and therefore medium businesses purpose is only for expansion.
 Ownership – In ownership public and private they both strive to generate profits but
therefore public companies utilize their revenue for building because making things for
public would give benefits to the whole society.
 Small business entrepreneurship – There are number of businesses which are known as
small businesses, these businesses are runs by their own, they mainly recruit local
employees such kind of business includes small boutiques, local grocery, hairdressers,
and plumber these are category of entrepreneurship (Exposito and Sanchis-Llopis, 2018).
 Large company entrepreneurship- are those when a number of companies have a
finite amount of life cycles, they includes large teams often large companies acquire
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companies such as Microsoft,Disney, Google these are given examples of large
entrepreneurship.
TASK 2
P3. Interpret and access data and statistics to illustrate how micro and small business impact on
economy.
Small business are carried out for the development of economy. As small business
provides development to the economy by innovation, increasing employment opportunities etc.
Small scale businesses create various opportunities attach helps the markets by huge opening of
new enterprises (Fan, 2017). They provides various opportunities of employment to the local
people. Also the rise in small scale industry encourages the are of competition w3ith other
companies. The rise in small scale industries contributes to maximum growth of market
formation and incense in competition rate of market. This will results in increasing economy of
the country of UK. Also they brings new ideas and innovation techniques in the country. Growth
of economy has reduces are of unemployment in the country. The minimum rate of employment
is small scale industry is about 14.6 million which is 50% of the private companies in UK.
At the starting of small businesses, entrepreneur finds skilled and unskilled employees for
the company. And later on increase their efficiency an potential by giving them proper training
an development sessions. This results in increasing productivity of employees and increasing in
living standard. However, small businesses are less complex than medium and large business.
Hence, entrepreneur first starts with small business and then take that business to large size.
Moreover, managers finds it easier to handle small businesses and thus this leads to increase in
rate of production of the businesses. High rate of production leads to increase in profits and
revenue of the business and thus increase in economy of UK. Also small and micro business
increase their profits by exporting products to the other regions of different countries. In order to
increase growth of small and micro business, mangers and entrepreneurs have to keep certain
factors in mind (Guzman and Stern, 2020). These are:
 Quality of products and services should be very efficient and very good as compared to
its competitors. If it is not good then they should work on the improvements.
 Micro business industry needs to consider existing customers and new customers in
mind. So that they could increase the sales of there products.
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 Small business needs to reduce the cost of products and services they are selling because
this can helps them in attracting customers and businesses should also work on the
demands of the customers.
 They needs to sharpen the techniques and process of businesses. This will helps them in
gaining customer attraction and sales of an organisation.
Illustration 1: Contribution of Micro and Small businesses in UK economy
P4. Importance of small businesses and business start-ups to the growth of social economy.
Small scale business is provided as the backbone of the economy of UK. Small business
have been provided various jobs and employment opportunities to the local people in the
country. Small business creates various impacts of areas of economy that involves national,
regional and globally by contributing and providing several products and services to them
( Gyimah, Appiah and Lussier, 2020). This is seen at the time of distributing and exporting of
various items in all over the world. In addition, small scale business contributes top higher are of
growth and new innovations and creativity in the market and in among the communities. Small
and medium enterprises helps the company in providing resources and also they carry exact
process of the business according to the large enterprises. So that is why it is important to carry
out small scale business in UK market.
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There are various opportunities for starting up new business in the country of UK. In
addition, there is a enough seen of the skilled and qualified candidates who can run a business in
very effective manner and perform there activities effectively. New start-up business helps the
economy in developing a country of UK. Ne start-up business provides new launching and
introduction of new products that can helps the country in reducing demand of the customer.
Also it reduces rate of unemployment in the country. It helps in increasing profits by exporting
of products and services to other countries and this results in higher growth of economy at
various levels. There is the high necessary of small start-up business for the growth of economy
(Kato and Charoenrat, 2018). Some of the reason are why small businesses are necessary for
growth of social economy:
 Employment generation: Small business are very important in generating employment
to the local people. As when they makes integration of new business they hire more
people and by this they can contribute to growth of social economy. By getting job
person can increase their living standards.
 Innovation techniques: Then it is another reason of small scale business contributes to
growth of economy. As business start-ups bring unique and creative ideas that can
encourage innovation techniques. Innovations are very important for every company as
they helps in creating various products and services which can enhance living stand of
people.
 Contributing local government through tax: This is another way in which small
business contribute towards the growth of social economy. As they contributes towards
the tax to local government. By this local tax generated from small businesses,
government can create certain opportunities and facilities to the local people of the
country. By this government can take certain actions that can take certain actions for well
being of society so that people can increase their living standard (Ketchen Jr and
Craighead, 2020).
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TASK 3
P5. Characteristics traits and skills of successful entrepreneurs that differentiate them from other
business managers.
Entrepreneurship is defined as setting a business or taking financial risk for the hope of
profit is called entrepreneurship. There are 8 traits involved for a successful entrepreneur are
given below:
 Strong leadership qualities – A leader is that who values their goals and achievements
over every unpleasantness, tom and mercer has a great leadership qualities of doing
business as they were planning to open more stalls and extend their company, they were
putting all the efforts needed in business this shows their leadership quality (Macke and
et.al., 2018).
 High self- motivated – According to studies, leaders enjoys challenges for this they work
tirelessly to solve their problems which confronts them, Elizabeth Gooch she was highly
motivated and a successful entrepreneur she had ability of resolving problems related to
her business, she was motivated towards new goals and opportunities.
 Strong sense of basic ethics and integrity- If peoples having successful and sustainable
business then they would maintain highest standards of integrity because at the end there
is need to be proven qualities of good business, if there are any errors made while
working with clients then offer them solution for the correction rather than blaming and
lie.
 Competitive spirit – Always entrepreneur would like to fight with challenges and win,
Elizabeth Gooch she had a fighting spirit, she started a business which implemented fixed
cost, and fixed time scale basis,it was only the company which return on investment.
 Willingness to fail – All the entrepreneurs are not afraid of failure because they are risk
takers, every entrepreneur is successful in all the ways because they are very calculating
and they have ability to makes best decisions (Petrenko and Karnaushenko, 2017).
 Understand the value of a strong peer network - Every entrepreneur gets a success
when they understand their business partners, network of contacts , financial partners,
and resources to succeed, only effective peoples nurture their business related
relationships. In the context of company they had good understanding skills with business
partners.
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Entrepreneur vs Manager
A manager is that who leads activities and known as leader, who established their
organisation and looks after employee or work of employees in the larger segment of the
organisation. They ameliorate all the troubleshoot problems, or provide guidance and makes sure
that deadlines are met as well as they do assign a task too. Even though many responsibilities are
given to them with higher pay and they must answer to the company owner. Managers positively
communicate with their employees and lead them well.
Entrepreneur – are those who naturally have capabilities to alleviate problems and
design solutions. They bring their new ideas in the market as they are highly motivated and filled
with lots of confidence (Scillitoe, Poonamallee and Joy, Sikora and Baranowska-Prokop, 2018).
P6. How aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset.
Entrepreneurs are the risk taker and goals driven. They focus on goals and objectives of
the organisation and businesses. They developed various skills and capabilities. That makes them
different from managers of other organisations. Elizabeth Gooch and Tom mercer are the biggest
entrepreneur and they have some of the traits and qualities in them which makes them them
effective in performing their all tasks. Some of the personal traits that are discussed below:
 Creative: Entrepreneurs are little creative because they are the one who needs to take all
the decisions regarding businesses. They needs to face new experiences and opportunities
for that they needs to innovate new businesses ideas. This will helps them in becoming
more creative and increasing productivity of their business.
 Risk taker: Risk is the essential part of every business. As entrepreneur is a risk taker
and ready to take any new innovation. This motivates entrepreneur to earn more and face
certain difficulties. Elizabeth Gooch is a successful entrepreneur, as she is a risk taker in
her life. As first she has worked in HSBC bank and then she had left from there. Then she
started her own small business called EG solutions. This can relates to her risk ability.
 Focused: Entrepreneurship needs to be focused in the his responsibilities. They have a
ability to focus on every situation of ad avoid distractions. This is done so that they could
focus on current scenario and try to follow all these issues and problems related to
business. Entrepreneur focus on the business mission, visions and objectives. This will
helps them in achieving their targets and goals (Song and Jing, 2017).
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The entrepreneurial personality highly reflects entrepreneurial mindset and motivation at
the time of business performance. It is a high requirement that reflects the entrepreneurial
motivation and mindset. Entrepreneur should focus on the positive motivation while performing
business activities and tasks. In addition, positive mindset helps the entrepreneur in taking
correct measures and complete all business activities properly and hence this results in achieving
success of the business. Moreover, good working of entrepreneurs reflects the working on
employees or workers working in the business. Employees also works with there full efficiency
and full potential. In order to carry business activities effectively, it is necessary to maintain
performance of staff members. Entrepreneur needs to make certain steps or evaluate their
performance by doing performance management. Tom mercer is also a successful entrepreneur
and he also have these abilities and traits in him which makes hi different from others. This
results in earning and leading team effectively and results in achieving of gaols and objectives.
The personality of entrepreneur makes positive impacts on employees working in a business to
achieve better performance. In addition, there is a high necessity to maintain positive
environment at the time of working in a business. Entrepreneur needs to focus on creating
motivation and direction to the employees working in the business organisation (Turner and
Gianiodis, 2018). They are the one who can perform better and creates profits for the business.
Positive behaviour of employees will leads to positive mindset and results in increasing in sales
and revenues of the organisation.
TASK 4
P7. How background and experience can hinder or foster entrepreneurship.
The principles purpose of entrepreneurship is that they explore opportunities for the
business organisation. The ability to evaluate and exploit information are considered as one of
the important characteristics of the entrepreneur. The entrepreneur efficiency can be judge
according to some research scholars and that may be derived from there educational background,
and experiences of previous work. Need of achievement can be a sustainable trait and that
obtained from accomplishing and aiming self declaration tasks. Entrepreneurs generally seek
higher risk and business performance. The theory of locus command is a index of business
expectations and success (Wennberg and Anderson, 2020). Risk taking is the another important
element that is performed by entrepreneurs because they are one who take risk and mangers do
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not have a responsibility of talking risks. The risk depends on the age, motivation and business
experiences. In addition, risk taking is associated with need of achievement of objectives or goals
that determines the capability of entrepreneur to deal with certain decision or situations. Some of
the civilizations reflect regressive attitude towards the essence of entrepreneurship. In context of
two case studies, like in case of Elizabeth Gooch, she is now a successful entrepreneur in UK as
she is now operating a company called EG solutions. She has also various abilities and traits in
her which helps her in achievement of her goals. In case of Tom mercer, his educational
background is very well qualifies as he has done graduation from Cambridge university and also
he was management consultant with Bain and Co. in London. This makes him in building large
amount of money and become a successful entrepreneur.
CONCLUSION
Here it can be said that entrepreneurship is a significant factor required to achieve
optimum level of performance in the business in small and large industries. Entrepreneurship is a
factor that a performing company looks up to. It makes easier to make appropriate plans and
productivity in order to achieve set target in the business. This helps a company to maintain
efficiency of its business work and to develop the economy of a country. It is highly considerable
to maintain the intense level of entrepreneurship to manage proper working of small as well as
industries. To have entrepreneurial mindset for a manager in accordance to the working of an
industry provides level of profitability which has been set out. By applying such skills, a positive
mindset is developed in the employees while working on a task, hence it turns out to motivate the
employees to the utmost level. So such workers will provide effective and quality amount of
work. This will help the industry to become successful in the long run. Not only motivational
factors needs to be met, but also it is necessary to look after sustainable factors which will help
to keep environment healthy and safe. Therefore, an industry needs to maintain optimum level
of entrepreneurial involvement in the business in order to perform efficiently.
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