Entrepreneurship and Small Business Management

This report discusses the importance of entrepreneurship in the global economy, different types of entrepreneurial ventures, characteristics of successful entrepreneurs, and the impact of small businesses on the economy.

Running Head: Entrepreneurship and Small Business Management
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“Make it Work”
Entrepreneurship and Small Business Management
6/19/2019

Entrepreneurship 1
Contents
Introduction......................................................................................................................................2
Activity 1.........................................................................................................................................3
Activity 2.........................................................................................................................................7
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Entrepreneurship 2
Introduction
The main aim of the report is to state the importance of the entrepreneur in the global economy.
There are diverse types of entrepreneurial ventures are there which w0069ll be stated in this
report. A diverse range of entrepreneurship ventures will be demonstrated in the corporate and
the public sector. The report will also put the major focus on the possibility, development and the
expansion of the entrepreneurship ventures (Mason and Brown, 2014). With the help of the
statistical data, it will be evaluated how the minor business impacts the economy. The
importance of startups in the economy will also be stated. The report will also state the
characteristics traits which are needed for the successful entrepreneur. The impact of the
background of the entrepreneur also affects the growth of the business which will also be
elaborated.

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Activity 1
Different types of an entrepreneurial venture and Relate to the typology of
entrepreneurship
There are four categories of the entrepreneurship venture which are a minor business, scalable
Startup, big company and community entrepreneurship. Small business entrepreneurs are those
who underway their business with lesser capital such as grocery stores, plumbers, consultants,
etc. Their key motive is to earn the income and not to take over the industry. Scalable
entrepreneurship is the startups in which they start the company whose vision is to change the
world (Fairlie, 2013). They attract investors and make huge expansions. Large companies are the
entrepreneurship which has large finite cycles. Their culture and size are very large and they also
make disruptive innovation. Social entrepreneur is the one which makes the products and
services more creative so that they can solve the social needs and problems. Any entrepreneur
can be successful if they will start the start their ventures like Bill Gates and Peter Jones.
Bill gates are the entrepreneur who is also an investor, programmer, philanthropic and the major
creator of the Microsoft. He is the chairman of the Bill Gates Foundation and they have
constructed the world’s major software business. Many business tactics have been followed by
them and they have done much technological innovation with Microsoft (Acs, 2016).
Peter Jones is a British Entrepreneur who has an interest in several fields such as the television,
media, mobiles, property, etc. He is the businessman of the television presenter and also made
personal computers in his own brands. He started the business by investing in different accounts.
The entrepreneurship business is based on the new technology model. Being a good employee of
the firm Make it work, it is advised to focus on the new technology and up gradation system so
that the new venture can have rapid growth in the market. The new venture can emerge through
the technical entrepreneur (İrengün and Arıkboğa, 2016).
Similarities and differences between entrepreneurial ventures
Similarities: Every entrepreneur ventures have started with some motive. It can fulfill the needs
of the market or provide social service. In every entrepreneur venture, there is one owner who

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takes the financial risk and operates the financial business. Each entrepreneur faces some
challenges and they have to compete with the other business which is running in the market.
They recognize the opportunity in the market and convince people to invest in their ventures
(Edwards-Schachter, 2015).
Differences: Small business ventures generally deals in the established products and services
while the big ventures generally focus on the innovation and the updated technology. In small
business venture, the growth is small and the profitability is limited but in the bi ventures the
rapid growth can be seen and the returns are very high. Social ventures are not made for the
profit motive their core goal is to serve the people (Drnovsek, et al., 2016).
Understanding of entrepreneurship in the public and corporate sector
Public sector entrepreneurship is designed for innovative ideas and the new design. When in any
entrepreneurship the development of the new services are done and it results in the innovative
activities then it is considered as the public sector entrepreneurship (Campopiano, et al., 2014).
Corporate entrepreneurship is the development of new ideas and the opportunities for the growth
and the innovation of the company. Corporate entrepreneurship mainly focused on the
profitability and competition and they majorly focus on the development of the new ideas. The
main objective of the corporate entrepreneur is required freedom and flexibility so that goals can
be achieved. The main focus on the new and the innovative ideas, updated technologies and
techniques and they also concentrate on both the internal and the external environment. The
public sector entrepreneur main objective is to maintain their organization and not to attain the
profit. Their main aim is to create the value for the citizen and they generally use the external
forces to achieve the internal change.
Scope, development, and growth of entrepreneurial ventures
The scope of entrepreneurial ventures facilitates the growth in the business. The operation of the
business can be enhanced and the revenue of the business can be increased. Enterprise
development ventures are very important as it creates business value. The growth in the
entrepreneur is very important as it helps in achieving the objectives of the company by
expanding the turnover, quality, and quantity (Kasseeah, 2016). Expansion and evolution of
entrepreneurial ventures bring innovation in the economy which also helps in improving the

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standard of living. Entrepreneurial ventures prosperous for a good society and create many jobs.
With the expansion and the evolution of the entrepreneurship ventures, the condition of the
society is flourished. Entrepreneurial ventures are very essential for the other business also as
people will invest in the new ventures which will help in running smoothly to the other
organization. As per the statistical data, it is evaluated that the small and business medium
owners can have their growth and development in their ventures and there is the scope of the
growth for this ventures when they will rise with the development.
Micro and small businesses impact the economy
Micro and the small business has a excessive influence on the economy as they contribute to the
local economies which bring invention and the development to the society in which the business
is executing. They bring opportunities for employment and they also contribute to the new
market. The small and micro business generates 50% of the GDP and contributes to the growth
(Drnovsek, et al., 2016). As per the statistics data, there is a large .competition in the job market
but still, they are adding more respondents as they need more employees to operate their
functions. The growth rate in the small business has increased and they bring more employment
opportunities for the economy.
Differences small, medium and large businesses make to the economy by using relevant
data and statistics
Small Medium Large
The business starts up with the
less capital held by the
founder family.
The equities in the business
are privately held and
sometimes they are also
owned with the public.
The equity in the business is
held by public investors.
The owner of the small
business managed the work
and they also take the
effective decision in the
company.
The owners and the
professionals managed the
medium business and the
decisions are also taken by
them (Nieto and Santamaría,
2010).
In the large business,
professionals and managers
operate the business and they
take the decision by
organization hierarchy.

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They have short term plans
and have the informal process
so their capital is met by the
leveraging personal net worth.
They have long term plan and
have the formal process so
they need a limited source of
capital to access the work.
They have the long term plans
and formal structure and they
have a wide range of funding
sources to diversify the market
(Neumark, et al., 2011).
How important small businesses and business start-ups are to the growth of the social
economy.
For the growth of the community economy, commercial startups are very essential. The
economic development has been seen through the startup as the new startups bring the
innovation in the market which is the driving force of the economy (Zaridis and Mousiolis,
2014). The new startups increase productivity and they are the best mechanism for commercial
technological. The new technologies can be easily developed which brings growth to the
economy. When the new startups take place it also brings opportunities for employees so it also
helps in contributing to the development of the social economy. In the economic system, the new
competitive dynamics are brought which keep the social economy vital, healthy and diligent. The
values of the society have been changed and the responsibility of the work is created with the
startup entrepreneurship.
Impact of small businesses on different levels of the economy (local, regional, national) and
in an international context
Local context: The innovation and the growth in the economy are contributed by the local
economies. Small business provides employment to the people who did not get opportunities
through large companies. They bring innovation in the local economies and give growth and
opportunities to the people.
Regional context: The inflation and the interest rate are rising in the country so small business
ventures bring the growth to the regional economy. In the regional economy, there were many
dimensions have been seen through the small ventures which provide the knowledge to the
consumers, businessman and the government (Bruton, et al., 2013).

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National context: The national economy is getting affected by the small business as they
provide both jobs and goods and services. Minor corporate can do the business more effectively
and understand the needs of the consumers that what they want. So it is helpful in evaluating the
stability in the economy and creates the number of jobs which brings the growth in the national
context (Kearney and Meynhardt, 2016).
International context: Small business has a excessive influence on the international trade
Centre. Small business pays to the world’s economy and provides the job world widely. When
the trade is increased at the international level the growth of the small entrepreneurs can be seen
at a large level.
Activity 2
Characteristic traits and skills of successful entrepreneurs that differentiate them from
other business managers
Characteristic personalities and skills of effective entrepreneurs are stated below:
Discipline: When any business is startup then the Discipline towards the work is very important.
The owner of the business should eliminate the hindrances and focused on the work so that the
goals can be achieved. They should take effective steps in a disciplined way so that objectives
can be achieved (Ribeiro-Soriano, 2017).
Confidence: The entrepreneur should be confident while taking any decision of the business. He
should be worthy of the success and execute the confidence in everything they do or execute. In
business, there were many risks which the entrepreneur has to be taken so he should be confident
towards them.
Competitive: There is a enormous number of rivalry in the market so, the entrepreneur should
be competitive and should have the ability to fight against them in a better way. He should know
how to take competitive advantage and should have the ability to track the external markets.
Creativity and innovation: An entrepreneur is the one who knows how to make their products
more creative and innovative so that it can be differentiated with competitive products. The
creativity and innovation is something that attracts the customers and it will enhance the growth

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so if the entrepreneur has this trait then he will come up with the great growth in the market (Al-
Damen, 2015).
Analysis of the characteristic traits, skills and motivational drivers of successful
entrepreneurs, supported by specific examples
There are the different characteristics which the entrepreneur requires such as the optimistic,
confident, self-disciplined, etc. The entrepreneur should be innovative and creative and the new
ideas should cross their path. There are many traits which are needed for successful
entrepreneurs such as passion, determination, open minded, competitiveness, etc. An
entrepreneur should be confident and motivated whenever any business decision is taken. If he
will be demotivated then the business decision will not be taken effectively. The de-motivated
entrepreneur is also not ready to take the huge risk in the business and this results in the
declining the growth of the company (Bamiatzi and Kirchmaier, 2014).
Example: A Bill gate is the motivated person and he is also very creative in establishing new
ideas. He invented the windows and then brings new creativity in that by modifying the new
versions. So he has a strong determination that he can take the risk and makes the more creative
product so that the customers will get be attracted.
How background and experience can hinder or foster entrepreneurship
There are several details which can adoptive entrepreneurship. The development and the failure
of the business entrepreneur are dependent on certain factors such as caste, race, family
background, religion, etc. There are many aspects which affect the business entrepreneurship
such as type of education, national culture, characteristics traits, economic conditions, etc. To
become a successful entrepreneur there should be certain traits which the person should have
then only the growth can be seen in the market (Khosa and Kalitanyi, 2015). When the difficult
situation arises in the company or when there were many fluctuations or changes happens in the
company then motivation has to be given to the employees so that they cannot feel afraid with
harsh situations. If the person’s economic condition is not good and he did not have enough
funds to start the business then the growth of the small ventures does not take place. If the
entrepreneur does not have taken the proper education then the growth of the business ventures

Entrepreneurship 9
also gets declined as they were unaware of the execution and directing the things in the proper
way.
A critical evaluation of how background and experiences influence the entrepreneurs in
both the positive and negative way.
Positive aspects: The background of the entrepreneur has a great impact on the performance of
the business venture. If the background of the entrepreneur has enough capital to invest in the
business then the growth can be seen easily as the business venture will not lack from money. If
the entrepreneur is well qualified then he knows how to direct and execute the business
functions. If the family members were supportive in starting the new ventures then the
innovation and creativity can be done at the extent level (Audretsch, et al., 2014).
Negative accept: If the background of the entrepreneur is not good then it is difficult for the
company to arrange the funds and capitals. If the background of the entrepreneur is not educated
then he will not be able to support him and guide him in the right directions. If the family
members of the entrepreneur are not supportive then they will not motivate the entrepreneur to
do the execution and it will result in a negative way (Bertoni, et al., 2013).

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Conclusion
From the above report, it is concluded that entrepreneurship is very important for the economy so
that the growth and the development of the small and large business can be done. Working in the
consultancy of the Make it Works, I have advised the clients that to be successful in
entrepreneurship there should be certain traits requires in the entrepreneur such as optimistic,
confident, self-disciplined, innovative, creative, competitive, etc. There are four sorts of business
ventures which are explained in this report and every entrepreneur starts their business with some
different motives. In this report, the many focuses have been put on small business which has to
face many challenges and obstacles ion taking the growth in the market. Small business has
contributed to the economy also and increases the rate of GDP by providing the new innovation
and opportunity of employment.

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