Entrepreneurship and Small Business Management

This report discusses the different types of entrepreneurial ventures and their relation to the typology of entrepreneurship. It also covers the impact of small and macro businesses on the economy, the importance of start-ups and small businesses to the growth of the social economy, and the traits and skills of successful entrepreneurs. The report includes case studies of Jeff Bezos and Mark Zuckerberg.

ENTREPRENURSHIP
AND SMALL
BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.Different types of entrepreneurial ventures in relation to the typology of entrepreneurship
................................................................................................................................................3
P2.Differences & similarities between entrepreneurial ventures...........................................5
TASK 2............................................................................................................................................6
P3 Interpretation and assessment of relevant statistics to understands impact on economy. 6
P4 importance of start-ups & small business to the growth and improvement of the social
economy.................................................................................................................................7
TASK 3............................................................................................................................................9
P5 Traits & skills, characteristics of a successful entrepreneur which can distinguish them
from other business managers. ..............................................................................................9
P6Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset.................................................................................................................................11
TASK 4..........................................................................................................................................12
P7 Background and experience which can act as hindrance in Entrepreneurship...............12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is a process of launching new business which is of small scale. It is basically
development and implementation of the idea in order to generate profit. A person who performs
this task and operations is an entrepreneur. Entrepreneur starts their business at small level in
order to minimize the risk and attain the goals. They take risk such as time, financial an do on
with a hope of generating profit(Akinboade, 2015). In this present report, types of
entrepreneurial ventures and their relation with types of entrepreneurship typology is discuss.
The affect of small and macro business on the economy is covered in this report. In addition to
this, it covers the importance of start-ups on growth of social economy and the qualities of a
successful entrepreneur which help them to attain their objectives and make successful at
marketplace.
TASK 1
P1.Different types of entrepreneurial ventures in relation to the typology of entrepreneurship
Entrepreneurship refers to the willingness and ability of a person to develop and manage
a new business with an aim to minimize the risk and earn profit. Entrepreneur is a person who
analyse the need and demand from the market and perform operations according to it. There are
various kinds of entrepreneurial ventures that is described below in detail:
Social Enterprises: An entrepreneur who launch and produces goods and service in order to
solve the issues and needs of society(Al Saiqal, 2015) . The primary objective is to improve the
conditions of society and make a good environment in the society rather then earning profits.
The Create Foundation CIC in UK , a community company established in year 2007 provide
training sessions & job opportunities for the people who are jobless, homeless and marginalised
and help them to rebuild and improve their lives.
Scalable Entrepreneurship: The entrepreneurs who start their business with an objective to
change and alter the world. They recruit the talented staff so that company can work with full
efficiency and productivity. Scalable entrepreneurship is funded by the venture capitalists. They
work on small proportions so that risk is reduced. Trouva, an online company in UK deals in
bricks & mortar boutique and established in year 2013. The company first start its business
offline on a small scale proportion and then starts operating online. Now it is one of the leading
entrepreneurship in UK in terms of revenue and profitability.

Large company enterprises: These type of entrepreneur has develop and sustain by offering
innovative and new product in the market. Change in laws, technologies, customer preferences
affect large companies and push them to offer something new in the market. These companies
either acquire new companies or change their product line in order to provide innovative things
in the market(Al-Ansari, Xu and Pervan, 2014) . For instance, Peter Jones a famous personality
and entrepreneur of UK who is popular for BBC2 television series . This person deals in large
scale and interested in industries like phone, travel, mobile, real state and so on.
These enterprises perform action in business environment which plays a crucial role in
the development of different typologies. It affect the behaviour and manner of taking decision of
an entrepreneur. Different typologies are described below:
Typologies
It means the classification of something based on its categories & types. Below are some of the
typologies of entrepreneurial ventures discuss in detail which are as follows:
Typologies Meaning
Lifestyle ventures Those ventures whose main aim is to satisfy
the income level of a person rather than
expansion & growth. They have limited
number of employees and operates on a small
space. Small business entrepreneur is the
example of lifestyle ventures.
Aggressive growth ventures They are based on the innovative technologies.
The main objective is to expand its operations
globally. Instance for such ventures is large
business enterprises.

Survival ventures The primary goal of these ventures is to satisfy
the basic human needs or improve the living
standard of people. Micro ventures is good
example of survival ventures.
Managed growth ventures Hiring the best talent, develop new products,
expand business is the main aim of these type
of ventures.
P2.Differences & similarities between entrepreneurial ventures.
The aim, size and number of employees is different as per the type of enterprise. Below is the
difference between these entrepreneurial ventures(Appiah-Nimo, 2019) :
Differences Social
Enterprise
Scalable
venture
Large
company
venture
1 The main goal of
social enterprises is
to increase the
standard of the
people of society
and development of
society.
Their main is to
capture the maximum
market share and
earns high profit.
Their main aim is to
increase market
share by giving
quality good to its
consumers.
2 Number of
employees in social
enterprise is not
fixed.
The employees is not
more than 30 in
scalable venture.
In large enterprises,
the employees is
greater than 250.
3 The idea of business
is to bring changes
and make aware
people about the
They bring
innovative at
marketplace in order
to attract large
They adopt new
technologies in order
to survive in the

new trends, cultures
of society.
number of people
and gain market
share.
market and maintain
their customers.
Similarities between social, scalable and large enterprises
 The first similarity between these ventures is that they are developed to gain
profits by offering services to the customer.
 These ventures analyse the need and trend of the market and then offer goods
according to the wants of the customers.
 These ventures look for good opportunities in order to maximize their market.
 The social, scalable and large enterprises is contributed to the economy and work
for the welfare and improvement of society. In addition to this, this ventures offers
good job opportunities to the public.
 Social, large and scalable entrepreneur put their best efforts so that they can make
their business a big success.
TASK 2
P3 Interpretation and assessment of relevant statistics to understands impact on economy.
Role of Micro enterprises: Micro and small business organisations play a very important part in
overall development and growth of a country's economy(Christopher Weber and Geneste, 2014).
They create various employment opportunities in economy which is essential for growth and
reduction of various economic problems taking place in economy. There are many economic
issues which UK economy is facing such as poverty low per capita income which can be solved
with the help of empowerment of such micro enterprises in country.
Contribution of small business: Small business play a very crucial role in every country's
economic development. They consists of approximately 90 % of employers and are contributing
in 60-80 % of jobs in a country. In case of UK also it can be said that such enterprise have
contributed a lot in reduction of various issues but at same time they have some negative effect
that they dominate the overall stock market which leads to high volume fluctuations in
functioning of economy.

From above statistical data it is concluded that small and medium enterprises which contribute in
the development of economy of UK. It has been observed that micro enterprises provide a
contribution of around 20 % which is a high percent for a country's economy(Davey, Hannon
and Penaluna, 2016). There is a contribution of approx 23.4% of small business. Hence it can be
said that both micro and small business have a significant contribution in development of UK.
This will help in solving of various economic issues prevailing in the country. Which leads to
increase in standards of people of UK. Various employment opportunities are developed and new
ventures enhance innovation in country.
P4 importance of start-ups & small business to the growth and improvement of the social
economy.
Social economy: Social economy can be defined as a third sector which consists of capitalist
economies which is different from public and private sectors. The social economy can be a not
for profit, cooperative or voluntary.
Four pillars of Social economy:

Mutuals:Mutuals are part of social economy they are providing various non-life insurance
various security schemes . They are also a very important part of a social economy and one of
four pillars of social economy.
Foundations:
Foundation are those which are having major objectives which are related to a trust or a
corporation. Founders of such organisations posses abilities to control overall functions of
operations and goals. They are based on a specific purpose which they have to achieve in a
limited period of time (Duma, 2014) .
Charities:
Charities are also a part of social economy in every country they are formed basically for helping
society in solving any serious issue which they are facing. They are having major motive to
attain their laid objectives and not to maximize their profitability ratio.
Associations:
This basically means various associations operating in UK which are part of social enterprises
and also a pillar of social economy. Example of one such association of UK is association of
corporate treasures. Such type of association firm very important part of social economy and
help in achievement of their objectives.
Importance of start-ups on overall growth of social economy:
Start-ups play a very essential role in increasing the economic activity in nation. For expansion
of various economic activities it becomes very essential for them to accommodate new people
who are looking for job. From view point of society it helps in solving a big issue of
unemployment and also in usage of technology for overall development of nation.
Importance of small business on growth of social economy :
small business are able to provide various business opportunities to various entrepreneurs for
providing various job opportunities in community (Katona, 2014) They help in gibing
importance to talent possess by people which helps them in taking of risks so that they are bale to
get both quantitative and qualitative reward based on their profit earning and creative
satisfaction. At same times such business benefit overall society in encouraging innovation and
creativity of people which helps in solving problems of people which is being faced in the
society.

TASK 3
P5 Traits & skills, characteristics of a successful entrepreneur which can distinguish them
from other business managers.
A successful entrepreneur is an individual who has the ability to manage and establish an
enterprise so that goals can be attained and the requirements of customers fulfilled. The main
function of an entrepreneur is not earning profit but it also includes activities such as motivating
employee, decision making, risk management, time management, brings new technology and so
on. For doing this research, the famous and big entrepreneur selected that is Jeff Bezos and Mark
Zuckerberg (Kiminami, 2019).
Jeff Bezos, the founder of Amazon that basically deals in different types of services and
brings new technology. He was starring a successful and impressive job, earning heavy amount,
ahead of quit everything & started Amazon . At present, Amazon is one of the leading online
company and first in terms of providing good service to the customers. This is due to his hard
work and efforts.
Mark Zuckerberg, who is famous as the founder and CEO of Facebook. Facebook is a
social networking website and leading as world best website to connecting people. New
innovation and hard work by Mark Zuckerberg is the key behind the success of Facebook. The
The key characteristic, traits & skills observed in Jeff Bezos and Mark Zuckerberg are:
Mark Zuckerberg Jeff Bezos
Traits
 Innovation: The idea executed
by him is innovative and
creative that attracts a lot of
people and influence them to
use it.
 Feedback Approach: He
believes in feedback approach
that is working according to the
suggestions of the people so
that the company can grow
faster (Militaru, Pollifroni and
 Innovation: Providing number of
services and products at a single
platform is the creativity of Jeff
Bezos which makes him a good
leader.
 Experimentalist: He believes in
experimenting and applying new
things rather than working with
existing things.

Niculescu, 2015).
Skills
 Motivator: He always influence
its employees and team in order
to make them more productive.
 Communication: Effective
communication is the key of
sharing ideas and thoughts
effectively according to Mark
Zuckerberg (Mutandwa,
Taremwa and Tubanambazi,
2015).
 Focused: He always believes in to
be more focused on work.
 Mindfulness: He act as a stepping
stone of success for many of the
people , as he knows how to solve
issues and problems effectively.
Characteris
tics
 Team-Player: Mark
Zuckerberg believes that team
working is more productive
rather than individual working.
As the knowledge of team
members is more rather than an
individual.
 Problem Solving
Mark Zuckerberg has the ability to
solve the problems easily as he
motivate people that problems does not
define him, he defines the problems.
 Risk-taker: He takes risk in his life
to become an successful
entrepreneur.
 Leadership: Jeff Bezos has a
leadership quality which helps him
to attain goals and mange the team
in an appropriate manner.
The difference between business managers & successful Entrepreneur are as follows:
Dimensions Successful Entrepreneurs Business Managers
Focus Developing and producing new
business is the main focus of a
successful entrepreneur.
Bringing and carrying our the
operations effectively is the main
focus of upper level authorities.
Status The owner of the profits and risk is Manages are the part of business as

entrepreneur itself. they work for the objectives of a firm.
Motivation Profit motivates entrepreneur to do
effective and hard working.
Managers are motivated by incentives,
appreciation, appraisal and promotion.
This motivate them to work with full
energy for the firm.
P6Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset.
The features, traits and skills of these successful entrepreneurs Jeff Bezos & Mark Zuckerberg
contributed them in their success. The model that is taking into consideration is OCEAN model
which is described below:
OCEAN Model
This model consist of five different types of traits of a personality that helps in
identifying responsibilities which are as follows:
Illustration 1: OCEAN Model, 2019

(Source: OCEAN Model, 2019)
Openness: It defines the level of creativity of an individual. It advises people develop products as
well as services in curiosity as well as showing their art and creativity. Jeff Bezos & Mark
Zuckerberg both have graded high in openness.
Conscientiousness: It describes how entrepreneurs manage work load of them. Jeff Bezos
& Mark Zuckerberg organized their work in systematic manner and motivate employees to do
the same (Pihie, Bagheri and Asimiran, 2014).
Extraversion: An extrovert person is easily make connections with people as compare to
the introvert person. Mark Zuckerberg and Jeff Bezos are introvert from their childhood but their
ideas builds confidence and make them a extrovert personality.
Agreeableness: The ability of an individual to being trusted by others. Both these
entrepreneurs are introvert personality and their agreeableness rank is high.
Neuroticism: It defines how a person control its emotions in difficulties and
circumstances. Mark Zuckerberg and Jeff Bezos both the entrepreneurs are very helpful as they
easily get emotional and ranked average in these type of personality.
From the above study, both entrepreneurs are successful as their skills, personality
traits is high.
TASK 4
P7 Background and experience which can act as hindrance in Entrepreneurship
Entrepreneurship refers to a process in which there is development, management,
organisation entrepreneurs are from a family background which can hindrance or foster their
performance which is explained below:
The family background, educational background and personal experience foster (support)
the entrepreneurship:
Family background plays a very effective role in fostering performance of a entrepreneur as this
helps them in creation of a experience which is more reliable based on their family background.
Family background also plays a very effective role in the overall process of generation of a
innovative ideas and overall process of establishment of a venture. Family context is asocial
factor which is having a considerable relationship with entrepreneurship. The available evidences
of family helps any individual in having rich role models of entrepreneurial role (Al Saiqal,

2015). Which provide support on establishment of a model. Entrepreneurs have high preference
for engaging in innovative business of their family in which they can adds value by their
creativity which can lead to expansion of business. Family background of Mark Zuckerberg and
Jeff Bezos have a background which has helped a crucial role in their journey of becoming
successful entrepreneurs.
The family background, educational background and personal experience hinders the
entrepreneurship:
Sometimes the background of family makes difficulties for an entrepreneur, Mark Zuckerberg
belongs from the American family as it is difficult for them to understand the culture and needs
of Indian families. He drop his studies in middle due to its family conditions and starts business
of his own interest. Jeff Bezos have no personal experience about the trends of the market , he
faced a lot of difficulties in implementing his ideas and thoughts in the market. Mark
Zuckerberg faced difficulties in gaining higher education in life but this makes him strong as
well as a successful and an inspirational business tycoon. This elements plays a crucial role in
their life and makes them a successful personalities and entrepreneur (Akinboade, 2015).

CONCLUSION
From the above study it has been analysed that types of entrepreneur who is working at
marketplace contributes to the economy as well as its development. Entrepreneurs brings
motivation and creativity in market and they have the capability to smoothly run the activities of
businesses. They are different and unique from others by their skills and qualities that help them
to grow in the market. In addition to this, the similarities and differences of entrepreneur is
discussed in order to understand and define the activities and nature of an entrepreneurs. The
background, experience and education of entrepreneurs supports and sometimes creates
difficulties in executing their plans and ideas.

REFERENCES
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