Effectual Entrepreneurship Research and Macro-Level Social Entrepreneurship

This assignment revolves around the review of several academic papers on various aspects of entrepreneurship and small business management. The primary studies include 'Response to Arend et al.: Cocreating Effectual Entrepreneurship Research' by Read et al., which discusses effectual entrepreneurship, and 'The Prevalence and Determinants of Social Entrepreneurship at the Macro Level' by Hoogendoorn, focusing on social entrepreneurship. Additionally, it covers topics like human capital in entrepreneurship research (Dimov & Dimov), crisis management in small businesses (Doern), women's entrepreneurship (Sarma & Borah), innovation through accelerators (Mohalajeng & Kroon), family involvement in the firm (Powell & Eddleston), and preference for self-employment (Kolvereid). The assignment also includes a personal reflection on 'Boss Life: Surviving My Own Small Business' by Boyle.

ENTREPRENEURSHIP
AND SMALL-BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurship ventures and their typologies........................................1
P2 Some similarities and differences between entrepreneurial ventures....................................2
TASK 2............................................................................................................................................4
P3 Impact of micro and small-business on the economy............................................................4
P4 Small-business and business start ups importance and contribution to the growth of social
economy......................................................................................................................................6
TASK 3............................................................................................................................................7
P5 Characteristics and traits of a successful entrepreneur in a business.....................................7
P6 Aspects of the entrepreneurial personality, reflect entrepreneurial motivation and mind-set
.....................................................................................................................................................8
TASK 4..........................................................................................................................................10
P7 How background and experience can foster or hinder entrepreneurship.............................10
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship and small-business management both are important as a business or in a
business. Entrepreneurship helps an individual to become a successful entrepreneur in the
business activities and small-business helps UK to grow economy rate by providing employment
opportunities. In this introduction the different types of entrepreneurial ventures and their
typologies are explained. There are also some similarities and differences given for the
entrepreneurial ventures. The impact of small-business and micro-business upon UK economy is
also explained. The importance of small-business and start ups and their contribution towards the
growth of global economy or social economy is also given. The introduction also includes the
characteristics, traits and skills of a successful entrepreneur, which differentiate him from any
other business manager. The reflection of entrepreneurial personality upon the entrepreneurial
mind set and motivation is also explained. Finally, the introduction ends up with the mini
research of how experience and background of an entrepreneur hinder or foster entrepreneurship.
TASK 1
P1 Different types of entrepreneurship ventures and their typologies
Entrepreneurship is so important for an entrepreneur and his business because it helps,
creating new ideas and opportunities to take appropriate decisions. An entrepreneur faces many
difficulties and uncertainties while starting a new business. Entrepreneurs are so much focused
towards their individual and business objectives, which help them to understand the future
opportunities and also to take decisions respectively as well. Here are some various ventures of
entrepreneurship:
Local or small-business ventures
Start up of a new business is very difficult work for an entrepreneur that he is alone
responsible for all the activities and decision-making (Chell, Spence, Perrini, and Harris, 2016).
Such type of businesses take support from their friends and family members for managing day to
day activities and operations. Small-business ventures are also managed and run by female
entrepreneur. Local business typologies are serial that they can sell an established business to
any other entrepreneur.
Scalable start up venture
Entrepreneurs are highly motivated and aggressive towards starting a new business and
also set the vision for changing the world. In this business, all the employees selected by
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entrepreneur are highly skilled and motivated, which help business to accomplish its objectives
and goals, while managing the firm operations. Such businesses also managed by female and
serial entrepreneurs.
Large ventures
Large businesses have ability to start their business with high amount of funds and
capital, which is helpful for an entrepreneur to make effective plans to manage its business
activities. The large ventures are focused to gain their profitability and productivity according to
the customer needs and they make plans and strategies for this objective.
Social ventures
Social businesses are those who works for the society and their all activities, operations
and objectives managed for social improvement. Such type of business, provide services and
products for the customers without earning profits. These are also known as social workers.
Determined entrepreneur
Entrepreneur with determination are mostly pacemakers instead of path followers. They
are very determined for their business activities and also make their own products and services to
gain profitability and productivity, instead of copying anyone. They always know what they are
doing and believe in individual efforts for achieving success (Gil, Zozimo, San Román, and Jack,
2016).
Serial, female and social entrepreneurs are related to the business ventures of
entrepreneurship. Small-business works for earning profits through products and services and
focused towards expanding their business activities to take future advantages. Large business
ventures are highly focused and motivated for increasing their productivity and profitability. On
the other side, social business provide their services and products to society customers without
hoping profits from them. They are the social workers. These, business activities are also
managed by female entrepreneurs.
P2 Some similarities and differences between entrepreneurial ventures
Entrepreneurs are different for business in various conditions to develop and grow the
firm activities. They have similarities as well as differences to develop a business and improve
its productivity and profitability. A common similarity in entrepreneurs for all kind of businesses
excluding social that they all work for profit and developing their business by managing and
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improving products and services according to the customer needs. The difference is also
common that their business activities and reasons are not same. They manage operations in
different conditions. Investment in a small business is smaller compared to large ventures. Social
business firm have no profit policy and focus upon improving services and products and society
as well. Social business creates their own value in the market by providing better service and
products to customers. The other business aims to improve value on the basis of quality.
Businesses have their own taste or preferences. Take a look at some differences and similarities
of different business ventures.
Similarities between business ventures:-
SMALL-BUSINESS LARGE BUSINESS SOCIAL VENTURE
Production of small-business is
low and few workers are
involved including the
entrepreneur (Gupta, Chiles,
and McMullen, 2016).
Production of large business is
high and there are so many
employees in different
departments for managing the
activities.
Social ventures also have large
number of employees as they
are working for the society.
Small business include local
workers or people for
employment and managing
activities.
They have employees from
different cities and works for
the development and growth in
economy of respective
country.
Social business increase their
employment rate through
encouraging and motivating
local people of societies.
Differences in business ventures:-
SMALL-BUSINESS LARGE BUSINESS SOCIAL VENTURE
Objectives and goals of a small
business entrepreneur are basic
and they start selling with a
single product in the market
for establishing customer base.
Objectives and goals are big
and visions are clear for
entrepreneur. So many
products and services offered
by a large business setup.
Social ventures improve the
life of an individual and their
vision is to help society in term
of services and products.
The risk level is low in the
business and lack of strategies
Risk percentage is high but
they love to achieve bigger
Social businesses work for the
welfare of society as they do
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and plans. success and also passionate for
this.
not have any risk in their work,
instead they get support from
other things.
They provide average products
and services to the customers,
sometimes better for the
customer loyalty (Kolvereid,
2016).
Quality of product and
services is good according to
satisfy the need of a customer.
They increase the global
economy, with their social
works.
Similarities between male and female entrepreneur
MALE ENTREPRENEUR FEMALE ENTREPRENEUR
Focus and control upon business activities Control and focus on business activities
Works with positive attitude and educated Level of education is good and positive nature
Knowledge of financial and business activities Appropriate knowledge of financial activities
Profit makers and goal achievers Capable to earn profit and achieve goals
Differences between male and female entrepreneur
MALE ENTREPRENEUR FEMALE ENTREPRENEUR
Decision-making is easy Decision-making difficult sometimes
Business focus upon cost and economy Quality focus and social contribution
Willing to take financial decisions Conservative for taking financial risks
Have enough information regarding business Lack of business information and details
Think logically for activities They are intuitive thinkers
Motivated and aggressive for firm expansion Sometimes, conservative about expansion
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TASK 2
P3 Impact of micro and small-business on the economy
Development and growth of any country is dependent on the economic condition and this
can be managed by improving and developing economy rates (Read, Sarasvathy, Dew, and
Wiltbank, 2016). Small-business have positive impact upon economy from their works. The
profitability of small-business is much fewer than large business ventures but they contribute
best towards the growth and development of economy factors respectively. Innovations are
different and they take position accordingly in the business. It is identified from research that
there are almost 400 employees or more than that contributing in business activities, which is a
profit for a firm. Innovations in a business ensures the quality of products and services, which is
going to deliver. Purchasing of services and products by a customer, helps to increase the
economy rate of country. UK is observing the benefits of employment opportunities associated in
small-business. The information tells that there are 90% industries in small-business segment and
supporting growth of economy.
Nature and
activity of
enterprise.
Investments (plant, machinery)
excluding land, production,
manufacturing.
Investments in equipment
excluding (land, production,
manufacturing).
Micro-business Not exceeding Rs.25.00 lac's Not exceeding Rs.10.00 lac's
Small-business More than Rs.25.00 lac's but less
than Rs.50.00 lac's
More than Rs.10 lac's but less than
Rs.200.00 lac's
Medium-business More than Rs.500.00 lac's but less
than Rs.1000.00 lac's
More than Rs.200.00 lac's but less
than Rs.500.00 lac's
Sole proprietorship
Such type of businesses and activities are managed and run by an individual, which is
responsible for taking all the decisions and engaging his employees at workplace. Profits and
debts are also managed by sole proprietor and he is liable for that. Some characteristics of sole
proprietorship is responsibilities, tax liability, ownership, considerations and risks
(Hoogendoorn, 2016).
Partnership businesses
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A business run and managed by two or more than two peoples is called partnership
business. The goals and objectives are also common for them. Each of them is responsible for the
profits, debts and risk occur in the business. Some partnership characteristics are divination of
taxes, control and management, entity, unlimited liability, profit motive and conduct of business.
Private business
Private business can be small or large, managed privately. Owners liability is limited in
such type of businesses for the shareholders and number of shares. Some characteristics of a
private business is index of members, limited liability, minimum subscription and paid capital.
The impact of micro and small-business upon economy as below:
Britain exit has direct impact on economy of UK that the government has to take
appropriate actions towards the development of small-business industries to improve the GDP
rate. The government has different subsidies on import and export to increase the economy rate.
The export process is also managed simple by the government to improve the possibilities in a
business (Daspit, Chrisman, Sharma, Pearson, and Long, 2017). Micro-business also contributing
towards increasing GDP and economy rate of respective country.
P4 Small-business and business start ups importance and contribution to the growth of social
economy
The present main issue for the UK government is the impact of Brexit, (Britain exit) upon
economy. However, after Brexit, UK government feels improvement in the economy from the
help of small-business industries and its employment opportunities. They work for the region of
UK and also able to fill the business requirements (Boyle, 2016). Large businesses improved
their profitability by giving extra or higher payments to their employees. This effective work set
up a meaning full substance for themselves and in sector of business of this global level. UK
government specially connect or get in touch with big association for executing their finance
part. Literally, small-business industries help more in the growth of economy. Here are some
more aspects, which contribute for the growth of economy in UK as below:
Employment
Businesses have different types of operations and activities which is handled by an
entrepreneur. It can be only done by the improvement in employment opportunities for the local
people of the country. This will help them to reduce the unemployment rate within UK.
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Income
Micro-businesses give their contribution towards the development of UK economy. It is
done by raising an individuals' income, which is helpful and will provide more opportunities to
deliver quality products and services to the customers. Local businesses funds for the
development of newly joined employees and the society. This will provide them social
advantages and plans to satisfy the necessities and needs and from this common things, economy
of UK affected positively.
Reduction of numerous issues
Reduction of numerous issues empower the level of wealth in or across a country.
Speculation brought up after the improving economy in theory progress. The business activities
and exercise completed for the welfare of local public and also improve the benefits which used
to feel them more easy.
UK's economy
The main effect of Brexit in the UK economy could be diminished with a special degree
of increasing financial development. This changes in economy development or improvement is
made by the local and new business start ups.
TASK 3
P5 Characteristics and traits of a successful entrepreneur in a business
A successful entrepreneur have some qualities, characteristic and traits, which is required
for managing business activities and operations with new and innovative ideas. Here are some
traits and characteristics of a successful entrepreneur:
Motivational and passionate
Entrepreneur should be a motivational personality, which motivate his employees to work
hard towards the business goals and he is also very passionate about his work at workplace.
Employees working under him always appreciates him for his work and also work with him
without any issue. Employees thinks that while working with a talented entrepreneur can also
improve their career (Dimov, and Dimov, 2017). Workers enjoy their work with such type of
entrepreneur.
Risk taker
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Entrepreneurs are confident about taking risks. They are creative from nature so that they
always try to do something new in every segment, which allows them to learn new things and
factors about the business. They make strategies and plans before taking any risk and also
ensures the gaining ratio after the implementation of plan. “If there is no risk, there is no
growth”.
Hard worker and self believer
Entrepreneurs are self believers that they always enjoy their work. They focus on making
new and innovative ideas for the business and become confident to apply them. They are the
hard workers that they never give up on anything or work. Work with discipline and concentrate
their visions.
Flexibility and availability
Entrepreneurs are very flexible in nature that they adopt every situation and condition in
the business. They handle clients very easy also make them believe themselves to provide
success. Flexible nature help them to survive in different environments in the business. They
always try to satisfy their customers for raising production and gain profit according to it.
Financial management
An effective entrepreneur always utilize his business resources very wisely. All the
businesses in the market try to improve their profitability from the other competitors.
Entrepreneur manages the funds and financial activities of the business to handle the financial
problems for the business in many ways.
Planner
Entrepreneurs always make strategies and plans before implementing them into the
business activities. They plan for the appropriate utilization of limited resources in the business
for achieving the objectives and goals. They make plans for completing the work on time at
workplace and able to save money. Planning helps him to prepare for the future uncertainties or
opportunities which he can grab from his strategies. This process is applied at the beginning of
the business to the end (Lester, 2016). Planning saves him to avoid risk factors and also keep his
authorities clear for business function.
Networking abilities
An entrepreneur knows that his network can help him on difficult stages of his life. He
has friends, family members, colleagues and relation experience, which help him to take advice
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and also in business activities in terms of financial. This is a key characteristic of an entrepreneur
that he can attract any customer or client through his nature and networking ability.
P6 Aspects of the entrepreneurial personality, reflect entrepreneurial motivation and mind-set
A successful entrepreneur have some key qualities and characteristics such as network
abilities, risk taking, passionate, motivational, flexible and hard worker about his work at
workplace in the business. Here are some points, which motivate themselves after a quality of
successful entrepreneur:
Take actions
Entrepreneurs have enough knowledge and skills from which they can take necessary
actions for their business activities. They are passionate and risk takers that they are able to take
right decisions for improvement and betterment of their organization. They are also confident
that they can do every possible within the business.
Desire to do something innovative
The flexible nature of entrepreneur makes him innovative that he always try something
new for his business activities. They learn new things and also become much confident that they
are able to face any situation in different conditions with their effectiveness and efficiency. They
are also able to take decisions regarding future opportunities and know well how to grab them
and set them within the business (Sarma, and Borah, 2016).
Independent
Entrepreneurs are independent that they are so capable of doing anything possible in the
business without any support or advice. They become successful with their own abilities,
capabilities and qualities. They set difficult goals and want to achieve them in their life.
Resource management
Entrepreneurs are also aware of their business resources weather, it is small or large
business. They make optimum utilization of available resources in the business to manage the
operations and activities of the firm (Doern, 2016). Appropriate utilization helps organization to
reduce the cost of products and services and development of new ideas as well.
Encouragement
Encouragement is a weapon which is used to destroy the problems occurs in the business
operations. Encouraged entrepreneur also motivate his employees towards hard working and
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encourage them towards their work. Employees will pay proper attention towards their
individual goals and objectives to achieve them.
Make policies
Entrepreneurs have so many qualities which affect the business positively. Entrepreneurs
make policies and plans and implement them in the business operations to increase the
productivity and profitability. Policies help them to manage business smoothly and strategies
help them to develop and improve goods and services effectively.
However, all the characteristics and traits of a successful entrepreneur in a business helps
him to take actions and decisions properly and according to the situation. Policies and plans
which help him to achieve its individual as well as business objectives and goals. This will also
fill the desire necessities of the firm.
TASK 4
P7 How background and experience can foster or hinder entrepreneurship
An entrepreneur gone through too many phases to become a successful one. These
conditions from which an entrepreneur grow up either hinder the abilities of entrepreneur or help
in forecasting the abilities. Experience and background of an entrepreneur impacts effective on
the behaviour and psychology. There are so many things or contents which can hinder the skills
and talent of an entrepreneur such as lack of education, not an experience to manage financial
management. It all depends on the psychology and behaviour of the entrepreneur which either
makes him successful or disappoint him or drags him down. Here are some points which
describes the entrepreneurship with affect of experience and background in growth and
development (Mohalajeng, and Kroon, 2016).
Cast origin
Caste system has its own influence for the mobility occupation. Social groups have
ability to produce large and capable structure of an entrepreneur than any other. This is a
suggestion that certain casts or religions encourage the growth and talent of an entrepreneur
towards his entrepreneurship. There are some casts which have ability and capabilities to expand
and develop their own business activities such as Marwaries, Parsees and Sindhees. This will
hinder the entrepreneurship. India has Baniyas, vaishyas, Khatris and Sindhees that all have their
individual source of entrepreneurship. Such type of businesses known as family business, which
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help entrepreneur to foster his entrepreneurship through managing his family business day to
day.
Family background
Family background of an entrepreneur involves the types of family and status of the
particular family. Background of an entrepreneur related to any business provide some relevant
source of industrial entrepreneurship. Family background supports an individual to become an
entrepreneur in his own business and learn the entrepreneurship skills. Scalable entrepreneurs are
opposite of that they do not accept the family business and start their own in any other sector. A
well educated family of an entrepreneur helps him to foster his entrepreneurship skills and
develop his growth towards business activities.
Experience
Experience of entrepreneurship and working as an entrepreneur helps any individual to
become a successful entrepreneur and make decisions and plans for making policies and
strategies implementation (Powell, and Eddleston, 2017). Experience allows them to face any
situation in any condition also they are able to make strategies plans for the future uncertainties.
This experiences also help him to take appropriate decision-making and can take advantages to
bring changes in the business or to foster his own entrepreneurship.
Conclusion
This report determines the different types of entrepreneurial ventures and their relation to
the entrepreneurship typologies. The similarities and differences between entrepreneurial
ventures define the particular business strategies, their limitation etc. The impact upon economy
of small-business and micro-business is also good for the business as a positive impact. The
importance of small-business start ups for the contribution towards the growth of social economy
is also positive. Characteristics, traits and skills of a successful entrepreneur in a business, which
differentiate him from others. Some aspects are also given here to understand the reflection of
entrepreneurial personality upon its mind set and motivation. Finally, the report ends with the
research of background and experience importance to hinder or foster the entrepreneurship in all
kind of businesses.
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REFERENCES
Books and Journals
Chell, E., Spence, L.J., Perrini, F. and Harris, J.D., 2016. Social entrepreneurship and business
ethics: does social equal ethical?. Journal of Business Ethics, 133(4), pp.619-625.
Gil, Á., Zozimo, R., San Román, E. and Jack, S.L., 2016. At the Crossroads. Management and
Business History in Entrepreneurship Research. Journal of Evolutionary Studies in
Business, 1(2), pp.156- 200.
Gupta, V.K., Chiles, T.H. and McMullen, J.S., 2016. A process perspective on evaluating and
conducting effectual entrepreneurship research. Academy of Management Review, 41(3),
pp.540-544.
Read, S., Sarasvathy, S.D., Dew, N. and Wiltbank, R., 2016. Response to Arend, Sarooghi, and
Burkemper (2015): Cocreating effectual entrepreneurship research. Academy of
management Review, 41(3), pp.528-536.
Hoogendoorn, B., 2016. The prevalence and determinants of social entrepreneurship at the macro
level. Journal of Small Business Management, 54(S1), pp.278-296.
Boyle, R., 2016. Boss Life: Surviving My Own Small Business. Journal of Applied Management
and Entrepreneurship, 21(1), p.89.
Dimov, D. and Dimov, D., 2017. Towards a qualitative understanding of human capital in
entrepreneurship research. International Journal of Entrepreneurial Behavior &
Research, 23(2), pp.210-227.
Lester, J., 2016. CANADA NEEDS AN ENTREPRENEURSHIP POLICY, NOT A SMALL
BUSINESS POLICY. HOW OTTAWA SPENDS 2016-2017, p.85.
Doern, R., 2016. Entrepreneurship and crisis management: The experiences of small businesses
during the London 2011 riots. International small business journal, 34(3), pp.276-302.
Sarma, P. and Borah, B., 2016. A Study on Women Entrepreneurship—Its Management and
Business Problems: An Overview. Journal of Art and Social Sciences, 1(1).
Mohalajeng, L.E. and Kroon, J., 2016. Innovation through accelerators: A case for open
innovation. The Southern African Journal of Entrepreneurship and Small Business
Management, 8(1), pp.1-9.
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Powell, G.N. and Eddleston, K.A., 2017. Family Involvement in the Firm, Family‐to‐Business
Support, and Entrepreneurial Outcomes: An Exploration. Journal of Small Business
Management, 55(4), pp.614-631.
Kolvereid, L., 2016. Preference for self-employment: Prediction of new business start-up
intentions and efforts. The International Journal of Entrepreneurship and
Innovation, 17(2), pp.100-109.
Daspit, J.J., Chrisman, J.J., Sharma, P., Pearson, A.W. and Long, R.G., 2017. A Strategic
Management Perspective of the Family Firm: Past Trends, New Insights, and Future
Directions. Journal of Managerial Issues, 29(1), pp.6-29.
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