Entrepreneurship and Small Business Management

This report discusses the types of entrepreneurship, differences and similarities between various entrepreneurial ventures, and the impact of micro and small businesses on the economy. It also explores the traits and characteristics of an entrepreneur and the aspects of entrepreneurial personality.

ENTERPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1. Different types of entrepreneurial ventures and their relation with typology...............................3
P2.Differences and similarities between various entrepreneurial ventures........................................4
P3. interpret and assess relevant data and statistic to illustrate the impact micro and small business
have on the economy.........................................................................................................................5
P4.Role of Small Scale industries......................................................................................................6
TASK 2.................................................................................................................................................7
P5. Traits and characteristics of an entrepreneur...............................................................................7
P6. Aspects of entrepreneurial personality.........................................................................................8
P7.Relevant example.........................................................................................................................8
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10

INTRODUCTION
Entrepreneur is the person who is the soul source of the new innovative concept as he
always tries introducing something creative and better. For this process he sets up
entrepreneurial ventures which have various aims. This report includes the types of
entrepreneurship and the difference between it and intrapreneurship. Also a relevant
statistical information has provided for the impact of small scale industry in the economy
along with the role of small scale ventures for the particular area. It has also been including
about the nature of the characteristic skills and traits of an entrepreneur that are responsible
for differentiating them from others. Also the factors which can influence the mindset of the
entrepreneur from upbringing, lifestyle and the role of the society. Also a relevant example
has been discussed which has proved that every person who sets up the entrepreneurial
ventures for people. It provides a deep discussion of the factors supporting the venture’s
success (Storey, 2016)
TASK 1
P1. Different types of entrepreneurial ventures and their relation with typology
Entrepreneurship is defined as the process of bringing up some innovative ideas in
market in order to reduce the human labour. Entrepreneurship plays a major role in making
the world technological advanced. Behind this concept of entrepreneurship there is a person
who continuously thinks about the creative concept by thinking out of the box which leads to
the generation of entrepreneurial ideas which is very helpful for mankind in the present
scenarios. These entrepreneurs are different intrapreneurs who is an employee responsible for
taking charge of various innovation for different product and services. He is restorative in

approach where as an entrepreneur has an intuitive approach. An entrepreneur works in a
newly established firm whereas an intrapreneur works in already established one. He is
independent while intrapreneur is dependent one.
There are four types of entrepreneurial ventures which are discussed below:
Large Enterprises
These are the enterprise which runs on a large base which means have they had a very
large customer base and has a huge production of products and services. They run on a large
scale and aims for earning profit on a huge amount (Stewart Thornhill,2018). They usually
sustain through adopting various creative idea.
Small Scale Enterprises
Small Scale enterprises are those which operates on a small base and have small
investment in their business which focuses on doing business in a particular region. They
usually provides employment to local people and also have approach to smaller areas
only.They have few employees as compared to large enterprises.
Scalable Unit Enterprises
These are the enterprises which are newly born. The owner of these firms are
entrepreneur who provides unique product and services and uses latest methods for the
production of these offerings. Their aim is to provide different kinds of product which are
totally advanced as compared to existing one in the market (Keith and et.al., 2016).
Social Enterprises
These are those enterprises in which the firms wants to earn a lot of profit but the
amount generated is used for the noble cause to develop the society in various ways. These
firms totally work for the same and provide a good quality service to the surroundings so that
it can develop and get benefitted from them which is completely different from other
entrepreneurial ventures. Social Enterprises provide a different vision to the nation and
balances out the self centred nature of other kind of ventures (Elert, Andersson and
Wennberg, 2015).
P2.Differences and similarities between various entrepreneurial ventures
Differences
These various entrepreneurial ventures have many differences such as all these large,
small and scalable ventures has a aim to provide a unique product in the market whereas
social ventures does not concentred on the features of their product. These private firms has
tge aim of increasing their shares in the market so that they can increase their customer
whereas social firms does not have these kind of concerns. Social organisation has the aim for
earning profit but using it for noble causes and other charity works whereas other companies
tries to build lots of profit so that owner can get many benefits and can sustain more in the
economy of market. These large and small firms faces competition and formulate many
strategies for survival whereas social firms does not have much concern on it because they
neither compete nor want to create a threat for the survivals of others. Small and large
entrepreneurial ventures completely works for the expansion of their business but social

ventures focuses on the particular area for creating impact on the society. These social firms
works for the local community they promote them and provide various services but private
ventures focuses on their employees and provide various monetary and no monetary benefits
which can motivate employee to provide quality services which ultimately affects their
business. Social firms may promote their products and services at the local region where as
other private firms always want to promote their offerings to much larger customers so that
more potential buyers can get attracted to them.The main aim of the social entrepreneurs is to
provide benefit to society whereas other kinds of firms seek for their benefits and advantages
only (Burns, 2016)
.
Similarities
There are also many similarities between these different firms as they completely
focuses on their customers. They have certain mission, objectives and vision which provides
them a direction where they can work for. They formulate strategies just to accomplish their
aims. They have a major concern for profit earning as it would help the business in many
ways. They always work on their products and want to increase the sales of the products and
services. They contribute to the economic development of the area where they are operating.
Focuses on the company’s production as they want to produce the best quality of offerings to
the customers. They always have an objective to gain a huge customer base. There fore
provides many attractive offers to attract them.
P3. interpret and assess relevant data and statistic to illustrate the impact micro and small
business have on the economy

Small Scale industries are considered as the crucial part of the nation’s economy as it has the
majority of shares regarding the private sector of the market. They are the largest
employment generators. These enterprises are known to be independent and do not belong to
any other groups of companies. The gross value added (GVA) has the major contribution
from these industries. They almost employ upto 34% of the total employees as compared to
other entrepreneurial ventures. They have a wider scope for the international trade and are
open for it. It has the largest export contribution and also encourages other for exporting the
goods. They provides the largest contribution in the value added for the various service
sectors (Goss, 2015).
P4.Role of Small Scale industries
Small Scale industries plays an important role in the industry because of the
following reasons:
Employment generations
These entrepreneurial ventures has the ability to generate many employment
opportunities in the particular region where it operates .They require different kinds of
workers from managers to lower class staff along with suppliers. This provides opportunities
to those who seeks for earning money for their living (Khedhaouria, Gurău and Torrès,
2015).
Regional Development
It leads to the development of the region as the living standards, people living their
has jobs which leads to their development in the living standards ultimately impacting the
economy of the area. It seeks for various chances that helps to contribute to the economy of
the area in monetary as well as non-monetary aspects.
Resource Exploitation
Every company requires raw material from which it can produce some quality
products that can satisfy the need of the customers. The production of these organisation
searches for the required resources and allocate them properly so that it can further be
exploited in a way that it provides benefits to the firm and the customers as well.
Cultural Promotion
These companies work on the regional level and provide goods and services which
are associated with the particular area. These include many firms such as handlooms, home
products which are influenced from the local communities and sell them to the customers
belonging to different areas.
Support to the Large Scale Industries
These small scale firms provides support to large ventures as they are the secondary
providers of half processed materials which are required by big firms for the final production
of the products and services. These small industries have a major importance for these
companies as all the supply of raw materials and pre processed products are send to them for
further operations which has lead them for many collaboration with each other as both are
mutually dependent on each other.

Promoting export
As their products are influenced from the local communities which are used as the
positive factor for the export as they concentrates more on supplying their offerings to other
countries so that export can promoted at an immense level. This lead to contribute more in
the gross domestic product of the economy and also many companies which are operating at
the lower level get encouraged to report their products at abroad which helps them to
generate greater amount of revenues giving them more opportunities to grow and expand
their business (Glaub and et.al., 2014)
.
TASK 2
P5. Traits and characteristics of an entrepreneur
As an individual entrepreneur has certain traits and characteristics which creates a
difference in their personality which are discussed below:
Innovative
It is the basic trait of the entrepreneur as he always believes in thinking out of the box
which forces him to bring some unique concepts to the market which can make the obsolete
work easy and can provide relax to humans. They continuously works for this concepts.
Focused
They are very focused as they already established their goals and objectives and
works in the direction of accomplishing these aims which are very necessary for the growth
of their ventures which would provide them success in their concept regarding their products
and services.
Determined
In the path of successful entrepreneurship they face many failures which does not
affects their attitude and they take it as a learning rather than loosing hope which makes them
to attempt as many times until they can succeed (Burton, Sørensen and Dobrev).
Visionary
They have a far vision regarding any concept which they think about.Theuy can
predict the future trends and also the opportunities for the business he is going to set
up.Thisvision provides them a direction on which they can work so that they can accomplish
their goals completely.
Analyser
They are regarded as a good analyser because they performs the research on the areas
which are taken for the business and also collects every information related to the market and
their demands followed by the competitors which is very necessary and from the knowledge
of that he analyses and predicts for the future aspects.
Optimistic

They are very optimistic and takes very challenges with a positive attitude and never
gets disappointed for any failures and tries to attempts with an attitude to complete itches
considers these challenges as the building blocks of his ventures and has the courage to take
risk for the business so that it can expand efficiently.
Leader
They have a strong leadership skills as they are able to lead huge subordinates who
follows his directives and works accordingly. He is able to influence people and also
motivate them to provide great contribution to the work for achieving their goals (Keith and
et.al., 2016).
P6. Aspects of entrepreneurial personality
The mindset of entrepreneur is developed in his childhood only. He is a learner and
always seeks for the opportunity from which he can bring out something new. Innovation is
the thing he always thrive for and perceive every stimulus from the surrounding in an
cognitive way.He is a motivational spirit and tries to motivate every person around him to
bring out something new for the world and perform every task in the best possible manner by
optimally utilising the available resources. His attitude depends on the three step which is
affected , behaviour and cognitive which includes when he observe the surrounding , a
particular behaviour is developed and then he reacts towards the stimulus. He is a charismatic
personality and wherever goes influence the people a lot. Also the upbringing and lifestyle
of an entrepreneur plays a crucial role to develop that spirit in him. As when the person is
bought up in a family which is open minded and provide freedom to very individual then the
person is able to describe his emotions and set of thoughts that is coming in his mind to elders
with that it develops a kind of strong bond which lead the person to whatever he thinks he can
explain it to someone and he can get a feedback for that in a positive manner (Amato and
et.al.,2017). Therefore whatever he thinks related to any subject in an innovative manner he
always tries to explain it, which was not possible in a family where he was not allowed to
express himself. Also the lifestyle plays an important role as when an individual lives a life
where every one motivates each other to do something effective and motivating than the
person continuously works for that and his thought procedure becomes the same. He tries to
attempt things which are different and can bring revolution to others life. Here society also
plays an effective role as when it welcomes the creative idea of the individual then he gets
truly inspired to bring something new which can definitely provide benefit to them and works
continuously for it but if the society has a negative behaviour for the entrepreneur then he
definitely gets motivated and he does not have confidence on his ideas. All these factors
mould together to form the mindset of an entrepreneur who can do wonders for the society by
bringing new concepts which can make their ordinary time consuming task into something
which can reduce their time and even efforts for performing that task.
P7.Relevant example
An example for the best entrepreneur can be Sam Waltan who is the owner of
Walmart.He has an entrepreneurial mindset from his childhood only. He was having an
effective leadership skills from childhood and wanted to perform something new which is
creative and also reduces the time and effort of people. He made the largest store of retail
where buyer can buy anything at a low price. He had a zeal to bring anew concept to people
so that he can surely change their old way of shopping. He as an entrepreneur was very

collaborative in nature as he always treated his associates as a partner because he believed
that every person with their suggestion can bring out something which is totally unexpected.
He was totally committed to his business and always brought something which can improvise
his business (Halabi and Lussier, 2014). He was a motivating source for the partners and as
well as employees that is why they provide the best quality services to the customers.
Communication was a necessary tool as an entrepreneur because he was very communicative
to his employees and business partners and always shard his ideas and thoughts for improving
the business. He always celebrated his success so that every one who is linked too it can
cherish his contribution for the same. He brought out services in such a manner that it
exceeded the expectations of every customers who was availing their services.
CONCLUSION
It has been concluded that a person who is responsible for introducing a newer
concept is known as the entrepreneur. There are majorly four types of entrepreneurial
ventures like small scale, large scale, scalable and social which has different aims and
provide various benefits to the society. There is a major difference between the private and
social firm which is the objectives as the private firms are self centred and social ventures has
a aim for providing contribution to the society by performing some noble works through
profit earned. Also the role of small scale industries plays an effective role in an area and also
provides a great contribution to the economy by providing employment opportunities,
utilising the resources, regional development and cultural promotion. Also the skills of
entrepreneur has been discussed such as he is a good analyser, optimistic, motivating,
innovative which helps him influence others.Also an example of Sam Walton has been
discussed who is the owner of Walter world’s largest retail store.

REFERENCES
Books and Journals
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Keith, N.and et.al., 2016. Informal learning and entrepreneurial success: a longitudinal study
of deliberate practice among small business owners. Applied Psychology, 65(3), pp.515-540.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Glaub, M. E and et.al., 2014. Increasing Personal Initiative in Small Business Managers or
Owners Leads to Entrepreneurial Success: A Theory-Based Controlled Randomized Field
Intervention for Evidence-BasedManagement. Academy of Management Learning &
Education.13(3).pp.354-379.
Keith, N. and et.al., 2016. Informal learning and entrepreneurial success: a longitudinal study
of deliberate practice among small business owners. Applied Psychology.65(3).pp.515-540.
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(S1), pp.27-
42.
Halabi, C. E. and Lussier, R. N., 2014. A model for predicting small firm performance:
Increasing the probability of entrepreneurial success in Chile. Journal of Small Business and
Enterprise Development.21(1).pp.4-25.
Burton, M. D., Sørensen, J. B. and Dobrev, S. D., 2016. Call for Papers–Entrepreneurship
Theory and Practice January 2016 Special Issue: Careers, Organizations and
Entrepreneurship. Entrepreneurship Theory and Practice.
Khedhaouria, A., Gurău, C. and Torrès, O., 2015. Creativity, self-efficacy, and small-firm
performance: the mediating role of entrepreneurial orientation. Small Business
Economics.44(3).pp.485-504.
Elert, N., Andersson, F. W. and Wennberg, K., 2015. The impact of entrepreneurship
education in high school on long-term entrepreneurial performance. Journal of Economic
Behavior & Organization.111. pp.209-223.
Online
Stewart Thornhill.2018.Entrepreneurial Ventures.[online].Available Through <
https://michiganross.umich.edu/courses/entrepreneurial-ventures-8682>
Statistics on small and medium-sized enterprises.2018.[online].Available through
< http://ec.europa.eu/eurostat/statistics-explained/index.php?
title=File:Number_of_enterprises,_GVA,_persons_employed_(FTE),_SME_share,_and_perc
entage_share_of_de-
pendent_enterprises_in_SME_category_in_four_special_aggregates,_2012.png >