Entreprenurship and Small business management

ENTREPRENEURSHIP
AND SMALL
BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Types of entrepreneurial ventures and typology....................................................................3
P2 Differences and similarity between entrepreneurial ventures................................................5
LO 2.................................................................................................................................................6
P3 Impact of Micro and small business on economy..................................................................6
P4 Importance of small and medium enterprise in the growth of social economy.....................7
LO 3.................................................................................................................................................8
P5 Skills and traits of an Entrepreneur........................................................................................8
P6 Reflect entrepreneurial motivation and mindset....................................................................9
LO 4...............................................................................................................................................10
P7 Obstacles in Entrepreneurship.............................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
Books and Journal.....................................................................................................................12

INTRODUCTION
Entrepreneurship is a process which includes launching, designing and making a new
business run on a small scale and people who run these kind or types of businesses are known as
entrepreneurs. There should be willingness and capacity in an entrepreneur to develop or create a
new business no matter what the risks are and make a profit in the end. There are a lot of
entrepreneurs who have not been able to become successful because of the lack of founds every
year.
Small business are those businesses which are privately owned, partnership or sole and
have a very small number of employees working under them. Businesses are defined as small
because they can not afford the government support and are not qualified enough for privileged
for the tax policies. The companies which have started as a small business take a lot of planning
and have to take a lot of risks to get a profit and get a brand name or a good portfolio in the
market. The right steps have to be taken in the market otherwise they will not be able to grow.
The report will have a detail study on the types of businesses, typologies, entrepreneurial
ventures, small business impact on the economy, trait and skills of a successful entrepreneur,
motivation and aspects of entrepreneurs and experience help in hindering the foster an
entrepreneur.
LO 1
P1 Types of entrepreneurial ventures and typology
Entrepreneurial Organization
There are a lot of changing the strategies and policies in the business because the
businesses are new to the industry. There are a lot of tools and techniques also used to make a
business work.
Public Organization
The public organizations are those organizations which are having stockholders in the
company who are not just the owners but from the outside the company also (Volery and
Mazzarol, 2015). The profit of the company is also shared by the limited shareholders of the
company. The companies which have public organizations there is no personal say in the
decision-making but every shareholder/ stockholder has a say in the decision-making of the

company. There will be a lot of conflicts in the company which the members of the company
will have to face because they will waste a lot of time coming to one decision.
Private Organization
There is a limited stockholder in this type of company and the profit is also divided
between the shareholders only (Mugler, 2017). The decision-making is very simple after
analyzing the factors of the company because there are not too many brains working together so
there are fewer chances of conflicts in the company. Mckinsey company is a private company
and the decisions which are taken by the company are very appropriate for the company
therefore the company is doing so well and making a good amount of profit in the market.
Social Organization
There are unlimited shareholders in the company and the profit of the company is not
shared by everyone because the profit is invested in helping the society and making the world a
better place to live in. But only a few have a decision-making power in this type of organization.
Typology Ventures
There is a trait which is followed in a business which helps the company's and
organizations to grow very quickly in any type of industry or market. Different types of ventures
can also lead to high profitability in the market.
Managed Growth Ventures
Managed growth venture focuses on the products by investing research and development
department and innovative ideas so that they can make more selling of their products which will
make the investors and the company make a lot of profit. The company also invests in
developing their employees so that they can make the employees work efficiently and produce
more products so that they can grow even faster.
Lifestyle Ventures
The company's in this venture focus on the quality and services they provide to their
customers so that the customers can have a standard living because of the products which are
being produced (Mazzarol and Reboud, 2017). Disadvantage of this venture is that the company
does not focus on the managerial aspect of the company which does not let the efficiency in the
company take place.
Survival Ventures

The focus in this type of venture is that the company does everything possible to make a
profit in the market and to stay in the market for as long as possible. The company's with this
type of venture does not plan anything for long term but for short term only because this will
help them know there position in the market.
Speculative Ventures
The entrepreneurs focus on showing the investors and competitors that they are making
innovation, creativity and efficiency in the company. There will be potential of the ventures and
they make a profit in the market because of their purchases in the market.
P2 Differences and similarity between entrepreneurial ventures.
Similarities
 The focus of all the other ventures focus on satisfying the customers and all the
entrepreneur enterprise are focused on the costumers.
 All the ventures have a tendency to expand in their own fields.
 The ventures can increase their sales and productivity of the products whenever want to
so that they can capture more market and become even better.
 The similarity in all the ventures is that all the ventures can earn a lot of profit with there
cost and their strategies being using in the ventures.
 There is risk factor which all the ventures have to take no matter what therefore that is a
huge similarity between them all (Saleem, 2017).
Differences
Differences Public Private Social Micro
Time horizon The focus is on
the increase of
productivity to
get more
customers.
They focus on
stability for long
term and also
improve the
quality of
products.
The company's
focus is on the
long term because
of the funds
which have been
taken by the
company.
The company
does not focus on
the long life of
the company but
on the profit.
Investment in
technology
The focus is on
surviving in the
To get better
output and low
To get a
competitive
The investment
which this

market and only
user the
technologies
where required
and do not invest
in technologies
much (Järvi,
2015).
employee rate
under them they
get technologies
to get efficiency
in the company as
well.
advantage this
venture uses
technologies as
there strength to
survive longer in
the market.
company has
been very little to
invest in
technology.
Employee's
managerial focus
Hierarchy of
managerial
delegation is used
in this venture.
Many strategies
are used in this
venture because
they have a
handful of
employees.
The focus is on
the productivity
of the venture and
employee's.
There are more
managers who are
employed in the
market.
LO 2
P3 Impact of Micro and small business on economy
The small and micro of the business has a huge impact on the economy of United
Kingdom and it contributed to 47% in the overall growth of the economy United Kingdom (Yan
and Yan, 2016). Small and medium enterprises plays a major factor in the employment of the
population because that results in the per capita income and creates a standard of living in the
country. Small and medium enterprises creates a huge motivation for the people to start their
own business because of the low investment which is required in the company to establish
themselves. The country's economy is majorly on the private sector in the country because there
focus is on the profit that the company earns and it also gives a lot of the population employment
therefore the growth of the country's economy is on the upward direction and gives a lot of
opportunity for the people. Free investment and start-up loans are also provided to the people in
the country to start their own enterprises.
It was noticed in 2016 that 99% of the population is from the small and medium
enterprises sector and therefore the government of United Kingdom invested a lot of strategies so

that it would motivate the people more to increase the number of small and medium enterprises
in the country for the growth of the economy of the country. There was a growth in the GDP of
the country which make the exports and imports in the country more inflation and the value of
currency of United Kingdom increased and due to the imports and exports in the country also
made the country have more currency come in the country (Amato and et.al., 2017). There is a
large variety of products coming in the market which means they also have power over the
market of switching the products whenever they want to. Liquidity of cash in the market because
of the disposal of net income of United Kingdom which means the small and medium enterprises
can sell their products at a higher price and more profits can be made and this cycle will make
the capital growth of the economy of the country.
P4 Importance of small and medium enterprise in the growth of social economy
Small and medium enterprises plays a major role in making the economy of the country
grow because Small and medium enterprises helps the economy to grow faster this way and that
has been proved by the reports of the past few years which increases the efficiency of the country
and also give a huge opportunity to employment of the population. Small and medium
enterprises is the backbone of the country because it provides a lot of employees to get employed
and make them have a standard living of their own (McKeown, 2017). Small and medium
enterprises also provides the population to have a choice of their own when it comes to selecting
their own products from the market because there are so many varieties of products coming up
because of the many businesses which are coming up. The help is given to the banks also by this
method because they can reduce there rate of interest which will help the enterprises to create
more quality products and work even more efficiently. There is an increase in the technologies in
the world therefore many companies have become e-commerce and have started coming online
because are way cheaper and attracts more customers than in the market. There is a rapid growth
in the sales, production and supply of the products because there is a huge demand of products in
the market which is because of the innovation and creation of many products that has resulted in
reduced liquid cash flow in the market.
Small and medium enterprises also helps the employees get a better skills and knowledge
of the work and makes them grow there personality which results in the employee's
achievements of personal goals and manners. The big enterprises have started getting there raw
material from the Small and medium enterprises because that is a lot of time and cost friendly.

The classes like middle and low class are also getting a rise because they are getting employed
which is resulting in no limits on the income (Burns and Dewhurst, 2016). There is high range of
innovation which is taking place in the market which makes the company's put out there entire
information to the customers so that they can easily choice there products properly. There are
low chances of mismanagement in the organizations because there will only be one person
giving the command in the enterprise which is the entrepreneur of the company.

LO 3

P5 Skills and traits of an Entrepreneur
Entrepreneur is a person who takes a lot of risks financially to make a business run
weather for a small or a long run, but they have to do that and for doing that there are certain
skills and traits which are required in them to make this function. Following are the traits and
skills which is required by them.
There has to be a trait of self motivation within the entrepreneur because that is the only
way they will be motivated to take risks financially and whole decision-making. There is a lot
of responsibility on the entrepreneur because he the person who is running the business and
there are a lot of employees under him, so he need to be motivated so that he can motivate the
other employees. The entrepreneur should have the skills of a great leader because it is him who
will give the direction to the business and the employee in the business to work towards a goal
and aim (Fayolle and et.al., 2017). A great leader has the ability to strong communication and
making the team work together in the same direction. The entrepreneur must know the basic
ethnic and integrity of the business because ethnic creates a transparency between the clients
and the employees of the business and integrity creates a standard of the business. The
entrepreneur must also have innovation and creativity in them because that will make the
products of the business grow in the competitive market.
Difference between an entrepreneur and business manager
1. Responsibility- There is a lot of responsibilities of an entrepreneur of the business
because the decisions are made by them and the company's manager has to make the
employees follow the decisions is a less responsibility of the manager.
2. Orientation strategic- The entrepreneur has to create ideas and convert them to strategies
for the growth of the business in the market but the manager has to make strategies
regarding the current sources of the business (Hatten, 2015).
3. Management structures- There is a direct communication between the employees and
the owner and share a good relationship with one another. The managers follow the
hierarchy formalized in which the employees can not directly communicate with the
management of the business.
P6 Reflect entrepreneurial motivation and mindset
Every human being has a different approach to a situation and the big five personality
model will discuss those factors. The model is divided into five major traits of a person which

are openness, Conscientiousness, extraversion, agreeableness and neuroticism. These traits of
the employees can be analyzed and motivation can be made accordingly for them so that the
company can work efficiently. The method will also help the entrepreneur to analyze the
behavior of the customers and increase the sales by understanding them (Burns, 2016).
Openness
People with this kind of trait will be more innovative and creative because they can
portray a product in mental thinking. People with this trait love being challenged and also are
interested in many things. By analyzing these factors the company will be able to hire better
people for the company because it is very important in an enterprise.
Extraversion
In this type of trait people are very open about there emotions and are had a good
communication skills and also very social people in nature. There is a sense of determination in
doing work and a habit of judging people. This will make the people have the right knowledge
spread in the business and that will not just create a friendly environment in the office but also
create a good environment for the people to work in.
Conscientiousness
In this trait the people understand and are very thoughtful about everything around
them. They have a high tolerance level, and they can react to circumstances very appropriately
(Millsteed, Redmond and Walker, 2016). For efficiency in the company the business will need
such kind of help and this trait makes the entrepreneur focus on the employees and motivate
them to continue there efficient work for the business.
Agreeableness
There are characteristic of courtesy, decency and faithfulness are the traits which are
found in this. The people with this trait talk very politely and are very obedient in nature. They
understand the emotions and feeling of others very well and the people with this trait do selfless
activities which are admired by everyone. On the bases of the traits the entrepreneur will
accordingly motivate the people for the efficiency in the business.
Neuroticism
People with this trait have a high tendency of facing depression because they overthink
and make small issues so big or things which should not be even affecting them affect them the
most. Employees under entrepreneur must be motivated and suitable methods should be taken

for them by the entrepreneur so that they do not face troubles.
LO 4
P7 Obstacles in Entrepreneurship
Richard Branson
Richard Branson is an entrepreneur who achieved his success after a lot of struggles, and
he made the people who are to become an entrepreneur that the path is not easy but it can get
easy if the right skills, determination and knowledge is used at the right time. Richard was born
in 1950 and opened his first business when he was just 16 because he had the determination of
becoming successful one day, and he did eventually (Ayandibu and Houghton, 2017). Richard, is
the CEO of Virgin group, and he also operates a lot of other businesses because he invested in
other businesses which give him more profit than he was with the business he has invented. The
entrepreneur started working from a very young age and now is so successful because of his hard
work and determination of doing something and also because of experience in the market
industry.
David and Simon Reuben
The two brother were born in Mumbai in 1941 and 1944 respectively and then the family
shifted to United Kingdom and sold metal all over Russia. This production of the metal became
so famous that the company became the third largest company in the country and the brother
thought of expanding this venture and planted factories all over the country. Brothers also
exchanged aluminum in return for metal from the market because there was shortage of metal,
and then they started extracting metal from the ground. The brothers made millions of money
from this venture and then slowly shifted to mining and that also became very successful for
them, and then they turned to selling estates in United Kingdom (Cole, 2018).
CONCLUSION
There are a lot of entrepreneurs every year wanting to become successful but are not
becoming so because they are not so determined and motivated in doing so but if they are they
become very successful and not just for themselves but even the country gets dependent on them.
There is a brief description of David and Simon Reuben and Richard Branson because they also
started one the ground, and they are very famous now. The role of SME is also important in a
country which is also discussed in the above report.

REFERENCES
Books and Journal
Amato, C and et.al., 2017. Regulatory modes and entrepreneurship: the mediational role of
alertness in small business success. Journal of Small Business Management. 55. pp.27-
42.
Ayandibu, A.O. and Houghton, J., 2017. The role of Small and Medium Scale Enterprise in local
economic development (LED). Journal of Business and Retail Management
Research. 11(2).
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Cole, R.A., 2018. Bank credit, trade credit or no credit: Evidence from the Surveys of Small
Business Finances. Trade Credit or No Credit: Evidence from the Surveys of Small
Business Finances (July 31, 2018).
Fayolle, A and et.al., 2017. Entrepreneurship in Family Firms, Business Families, and Family
Business Groups.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Järvi, T., 2015. Production of entrepreneurship in small business activities of students. Journal of
Small Business and Enterprise Development. 22(1). pp.180-191.
Mazzarol, T.W. and Reboud, S., 2017. Entrepreneurship and innovation. Tilde Publishing and
Distribution.
McKeown, T., 2017. From entrepreneurship to small-to-medium enterprises: Exploring the
challenge and the opportunities. Journal of Management & Organization. 23(2). pp.165-
166.
Millsteed, J., Redmond, J. and Walker, E.A., 2016. Small business ownership for occupational
therapists: Key factors for success. International Journal of Entrepreneurship and Small
Business. 27(4). pp.425-440.
Mugler, J., 2017. The climate for entrepreneurship in European countries in transition. The
blackwell handbook of entrepreneurship. pp.150-175.
Saleem, M.A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of society and space. 8(1).
Volery, T. and Mazzarol, T., 2015. The evolution of the small business and entrepreneurship
field: A bibliometric investigation of articles published in the International Small
Business Journal. International Small Business Journal. 33(4). pp.374-396.
Yan, J. and Yan, L., 2016. Individual entrepreneurship, collective entrepreneurship and
innovation in small business: an empirical study. International Entrepreneurship and
Management Journal. 12(4). pp.1053-1077.