Entrepreneurship and Small Business

This assignment delves into the crucial field of entrepreneurship and small business management. It examines various aspects, including models of potential entrepreneurship, journal rankings within the discipline, public policy levers affecting small businesses, perceptions of business ethics and CSR, sustainable development in entrepreneurship, the impact of education on entrepreneurship, and the role of personality traits and demographics in social entrepreneurship. The assignment also considers the importance of small businesses in developing economies and provides insights into successful strategies for managing small enterprises.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION....................................................................................................................................................3
TASK 1.....................................................................................................................................................................3
P1 Different kinds of entrepreneurship...............................................................................................................3
P2 Difference between large and small business entrepreneurship....................................................................4
P3 Effects of small and micro business on the economy ...................................................................................6
P4 Importance of small business in growth of social economy..........................................................................6
TASK 2 ..................................................................................................................................................................7
P5 Characteristics of a successful entrepreneur..................................................................................................7
P6 Effects of entrepreneurial personality on entrepreneurial motivation...........................................................9
P7 Impacts of past experiences to enhance entrepreneurship...........................................................................10
CONCLUSION......................................................................................................................................................11
REFERENCES.......................................................................................................................................................13

INTRODUCTION
The entrepreneurship and small business management inspires people to start business
or achieve opportunities of employment in small businesses. It aids in recognising
employment options in small businesses and help them to spread knowledge of
entrepreneurship and also in developing the skills and techniques of venture management
(Lee-Ross and Lashley, 2010). The business skill is also in demand for establishment of a
business which needs skills to survive. It is designed in such a way, which will help in
building knowledge.
TASK 1
P1 Different kinds of entrepreneurship
The word entrepreneur derived from a French word, “enterprendre”, which means, “to
undertake”. It refers to that person who undertakes the risk of establishing a new enterprise. It
is instituted by a person, who is tagged as entrepreneur. The process by which it is started is
called entrepreneurship.
It refers to a process of establishing, designing and running of a business which
started as a small business that helps in offering a product , services for sale. It is used as a
key to economy development. The entrepreneurial progress helps in generating the objective
of industrial development, employment generation.
Extent of entrepreneurship is as follows:
The biggest scope is to develop managerial capabilities which will help in recognition
and development of directorial capabilities. It assist an entrepreneur to enhance its skills in
decision making (Burns, 2010). It also aids in developing new technologies in place of older,
which leads to enhancement of performance.
It also results into establishment of organisations in assembling and coordinating
resources such as physical, financial and human and also supports them to work towards the
achievement of objectives.
It assist an entrepreneur to improve living standard by the establishment of productive
organisation which helps in production of goods and services that results in improving the
standard of living in society.

It also aids to maximise profit with available resources by use of creative ideas. These
are also important for the development of an economy of a country. The four types of
entrepreneurship are as follows-
Small business entrepreneurship- It includes grocery stores, travel agents,
carpenters, electricians, plumbers etc. Their objective is to satisfy the needs of their family
and make a profit only. They do not help in attracting the scale of venture capital as they
invest in business via family or loans (Stokes, Wilson and Wilson, 2010..
Scalable entrepreneurship- These are the Silicon Valley entrepreneurs. They
establish a business whose objective is to change the world. They invest in their businesses
through financial investors as venture capital.
Large Company entrepreneurship- Sustaining innovation supports in the growth of
these companies by providing new product. The factors which create pressure on
entrepreneurs to create new products are change in taste of customer, new technologies,
competitors etc. the culture and size of large company is difficult to manage.
Social entrepreneurship- These entrepreneurs emphasis on the development of
product and services which helps to fulfil the social needs and problems.
The types of entrepreneurship ventures and entrepreneur both assist in the
establishment of a new business (Dennis, 2011.). They also help to improve the standard of
living by production of new products which will supports them to satisfy the need of the
customers. They will results in increasing growth of the business.
P2 Difference between large and small business entrepreneurship
basis Large business Small business
Registration Required to be registered
under Industrial Development
and Regulation Act.
Required to be registered as
SSI under Director of
Industries
Capital Capital investment of Rs. 5
Corers or more
Maximum 1 Corer
Ownership Found as company forms Sole proprietary
Technology Higher technology and capital Labour intensive

Location Located in metropolitan and
urban areas
Rural and semi urban areas
Management Greater scope to professional
management
No scope of professional
management
Marketing Market oriented Work to satisfy local people's
need
Specialization Skilled people handle
different jobs
Done by sole entrepreneur
Similarity between large and small business entrepreneurship-
They both compete each other in particular circumstances such as in terms of product
selection. They both are supplementary of each other so that can fulfil the gap between
production and standard output. Small industry work as a complimentary to large business
which produce intermediate products for them. It will also help large business in gaining
higher profit (Nga and Shamuganathan, 2010).
Difference between social and scalable entrepreneurship-
Basis Scalable entrepreneurship Social entrepreneurship
Goals to change the world to fulfil the social needs
Mindset To provide services which
lead to change the world
Provide opportunities in the
market
Value creation designing and marketing of a
product
creating social values along
with economic values
Marketing By advertisement in mass and
media
By organic social media
Similarities between scalable and social entrepreneurship-
They both are work for changing the world by fulfilling the needs of the society.
which will emphasis on the development of products. These work for the society to provide
better services to take a step towards the achievement of the goal of changing world.

P3 Effects of small and micro business on the economy
Small businesses focus on the designing of policies of an enterprise. These play an
important role in the growth of economy, creation of jobs, innovation and social integration.
These enterprises have different structure of ownership and number of employees and
unrelated levels of activities related to economy (Carraher and Paridon, 2015).
These play an important role in an economy as representing around 99% of all
businesses and give employment to an increasing number of persons. There are some
independent enterprises which don't related to any group of enterprise.
In accordance of employment and gross value added, dependent small businesses are
more important in small countries like Denmark, Finland etc. They are also important in
Germany as approx 43% of gross value achieved in these businesses in total and also help to
contribute in employment around 34% of total persons employed. As a result, a large portion
of total growth achieved by them (Fassin,Van Rossem and Buelens, 2011). The higher
proportion of value added is created by them in service sectors.
P4 Importance of small business in growth of social economy
These are important for the growth of social economy and they also support in
creating job opportunities. Innovation, employment opportunities and adaptability are the
main factors which will assist in the growth of a economy. Small businesses that are creative
and innovative has higher rates of growth in different areas such as innovation of product and
process. It is also said that they act as seedbed for new creations. They plays an important
role in the increasing growth rate of economy in terms of employment.
Small and micro-businesses also helps to make economy more effective, competitive
and attractive to investors. They support in adding diversity in towns and cities by serving
communities. They not only add more values in regional areas but also aid to increase
competition in local markets.
Small businesses helps to make employment more phenomenal. It is showed by
official figures published by government that around 2.60 million jobs opportunities were
created by them each year.
Small firms contributes to bring growth in social economy. It will also deal with
larger companies by providing them resources and in finishing actions of business that are not
completed by large enterprises.

These are capable of attracting and giving training to new employees to produce
innovative products that helps to achieve the goal of satisfying the social needs of their local
communities.(Carland, Carland and Stewart,2015) They are more capable of dealing to
contribute towards creativity. Small businesses also help to produce goods with more
effective, creative and innovative ideas that will assist them to satisfy the need of the people
of the community in which they live that aids them to achieve the social goal resulted in
incresing the growth of the social economy.
TASK 2
P5 Characteristics of a successful entrepreneur
For becoming a successful entrepreneur is to establish a new venture which means
that having right attitude towards an enterprise and to works for achieving success. He has a
strong desire that will help him to take a step towards his success. He has a strong desire of
succeeding and ability to overcome from obstacles(Blackburn, Hart,and Wainwright,2013).
For being a successful entrepreneur an individual has certain characteristics they are
as follows-
 Passion-It will help an entrepreneur to determine the ways which are required to
become successful. If he is passionate about his success than it will helps him to
overcome from all problems and assists in achieving success.
 Learning- He needs to has a quality of learning constantly. Remaining sharp by
learning continuously will helps to achieve the organisational objective.
 Confidence level- He requires to have a high confidence level which help him to
work even under pressure. He knows that success is achieved by the challenges.
When most of the entrepreneurs work on challenges that time a successful
entrepreneur work towards the finishing line and at rewards.
 Taking risk- A successful entrepreneur never afraid of taking risk. It plays an
important role in becoming a successful entrepreneur. He is a risk takers so that he
can dive into a uncertain future. Taking risk helps him to work with more confidence
towards achieving success.
 Believe in self- He has a quality to enjoy in what he is doing. He also has a strong
believe in himself and increase level of confidence which will help him to work with

more dedication to his project. But the most important quality of an entrepreneur is
discipline and dedication towards achieving objective.
 Leadership quality- It helps him to determine the goal. The good communication
skill is very important quality of an entrepreneur which helps to work with a team to
achieve the common objective in such a way that leads to motivate employees and
work as a team more effectively.
 Self-motivation- An entrepreneur needs to be self motivated so that which will
assists him in enjoying challenges and and work more effectively to overcome from
obstacles. He is highly adaptable to change the conditions and situations which
assists to work towards achievement of goals and opportunities.
 Innovative and creative- Entrepreneur is capable of continuously developing new
ideas which will help in improving continuing process. They have ability to adapt
change very easily and leads towards their objective by improving the quality of the
product and services in order to win success.
 Competition- Entrepreneur enjoy working with challenges and He has a strong
desire of winning. Competitive spirit will help him in growing his shares in the
market.
 Monetary management- It is essential for an entrepreneur to have the knowledge of
money management which is required for financial obligations arising in present and
future. A successful entrepreneur has a balance on flow of cash as it is considered as a
important tool of any business.
 Planning- It is important for establishment of a business with available resources
such as time, money, relationships etc. Planning is very essential for everything
having solution for risk which may occur in future. It will aids him to overcome from
all obstacles to achieve the objective.
 Resourcefulness- It is essential for every entrepreneur to know how to obtain
maximum results with available resources. Resources are very limited so that they
will be utilise fully to meet the expected results.
 Analytical abilities- He should be capable of identifying aspects of business through
finance, marketing and sales.

 Goal-oriented- He is all about planning his goals and putting efforts to achieve the
goals so that he is very passionate to obtain the success of their business.
 Hard work- He has ability to work hard with other people so that he can achieve
organisational goal.
 Expert- Being able to position as an expert in industry will help an individual to view
business with confidence and getting involved in events of respective fields.
Successful entrepreneurs are also called as industrial leaders.
Entrepreneurs are born or made means to become a successful entrepreneur has a
unique personality and have a number of qualities that can be learned through education.
Entrepreneurial skills can be developed through educational experiences in an individual.
There are the some qualities which will help in becoming successful entrepreneur such as risk
taker, independence, self motivation, adaptability,flexibility,innovative and creative etc.
Entrepreneurship skills are also important for becoming a successful entrepreneur
which help in achieving the objectives.(Luiz,2011.) They have a creative and innovative mind
that will supports them to produce goods and services according to the need of the customer
which assists to satisfy their needs to achieve the goal more effectively and efficiently.
P6 Effects of entrepreneurial personality on entrepreneurial motivation
The family upbringings, cultural differences and personal motivation play an
important role in enhancing the entrepreneurial personality. These all factors help in defining
the characteristics of an entrepreneur. These are the factors which supports in working for
achievement of goal with passion. It assist them to become more passionate to their work
which will lead in motivating their employees to work more efficiently towards achievement
of objective.
Entrepreneurs need a quality of learning from their failures so that they will never
repeat that mistake next time which supports them to be more confident to work.(Hall,
Daneke, and Lenox, 2010)
Self motivation plays an important role in enhancing entrepreneurial personality
which will help them to overcome from a number of problems. Self confident and self
motivation are also key elements of entrepreneurial identityBy which they have a ability to
convert a idea into reality.

Adapting changes and challenges is important for every business. Entrepreneurs are
very flexible to transform an idea into reality. When new informations received by them they
are capable of changing their plans.
They have a capability to see opportunities which help in developing new ideas to
improve their existing products that supports in enhancing the entrepreneurial personality to
achieve their goals and assist them to take a step towards their success.
P7 Impacts of past experiences to enhance entrepreneurship
Person's background and past experiences affect the personality of an individual
which will help him to become a successful entrepreneur. To have a positive influence over
entrepreneurship there are also a number of business skills and experiences which will assist
in managing skills and ability to adapt change.(Idogho,2011) There are so many personal
attributes which are also important for an entrepreneurship such as innovative and creative,
change oriented and visionary. These are received from education.
Business skills are important to the process of innovation that can be a more
important factor for financing. They provides the basis for dynamic and unique capabilities of
a business which help them to learn and adapt to changed circumstances. These are also
important for the establishment and growth.
Personal experiences can also be enhanced by the different levels of education. In
adopting changes and improving skills, education is very important because it will help them
to take risk and provide solutions to overcome from the obstacles occurred which also assist
in increasing self motivation and self confidence that results in reducing stress and also teach
them to work under pressure and stress which will supports them to enhance their leadership
skills to motivate their employees to work towards the projects so that it can help in
achieving objective very effectively(Brinckmann, Grichnik and Kapsa, 2010)
The risk in starting a business is the chance of damage which means an estimated
profit or outcome could not be earned by bearing a loss of investment which will results in
liability of paying debt. It will also create a problem of finding job or start again a business.
There is a increased rate of failure of new business establishment . It is very tough to examine
a idea of business without trading. The responses of competitors area also very aggressive
and they underestimate the efforts which are required for the success of a business. The
reason of failure of new businesses are the insufficient demand of the customer such as bad

market research and unrealistic plan, the responses of customers like price and promotion.
The poor execution of good idea is equally important for the failure such as poor
management by wrong people, too quick and too slow growth and fails in managing cash
flows. External factors are also leads to their non-success such as change in economy,
changes in legal, social & technology. Risk is a part of success and failure of a business.
These cannot be avoided. Entrepreneurs needs to understand the risk and the solutions to
overcome from them.(Olusegun, 2012).
Rewards of starting a new business are divided into two parts financial and non-
financial.
Financial includes-
 Profit- These are reinvested into the business
 Dividends- Taking cash and profit out of the business
 Capital Growth- Increased value of the business
Non-financial includes- Satisfaction, building something, controlling, preparing first
scale, new location opening, employment to more people, achieving an industrial award and
publicity, achieving good feedback from customers.(Carland and Carland,2015)
CONCLUSION
It is concluded from the above report that to become a successful in business,
entrepreneurship and innovations are very essential. It focused on producing new product and
services which will help in fulfilling the need of the society. The innovation and
entrepreneurship also applies on companies to change how to produce new product and
services. The companies can use innovation and entrepreneurial skills to achieve the
objective that supports in reducing the risk and challenges so it can assist in achieving
independent and personal and financial rewards therefore they can achieve their objective. It
will also supports them to work with passion and also to be confident so that they can work
towards the achievement of the goals. It enhances their skills to place a idea into reality by
creative and innovative way so that they can produce a existing product in a different way to
satisfy the need of the customers. Therefore, It leads to increase the growth of economy.

REFERENCES
Books and Journals
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and
enterprise development.20(1). pp.8-27.
Brinckmann, J., Grichnik, D. and Kapsa, D., 2010. Should entrepreneurs plan or just storm
the castle? A meta-analysis on contextual factors impacting the business planning–
performance relationship in small firms. Journal of Business Venturing. 25(1).
pp.24-40.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity.
Palgrave Macmillan.
Carland, J.C., Carland, J.W. and Stewart, W.H., 2015. Seeing what's not there: The enigma of
entrepreneurship. Journal of small business strategy. 7(1). pp.1-20.
Carland, J.W. and Carland, J.C., 2015. A model of potential entrepreneurship: Profiles and
educational implications. Journal of Small Business Strategy. 8(1). pp.1-14.
Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the
discipline. Journal of Small Business Strategy. 19(2). pp.89-98.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management.49(1). pp.92-106.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business
ethics. 98(3).pp.425-453.
Hall, J.K., Daneke, G.A. and Lenox, M.J., 2010. Sustainable development and
entrepreneurship: Past contributions and future directions. Journal of Business
Venturing. 25(5). pp.439-448.
Idogho, P.O., 2011. Entrepreneurship education and small-scale business management skill
development among students of Auchi Polytechnic Auchi, Edo State,
Nigeria. International Journal of Business and Management. 6(3). pp.284.
Lee-Ross, D. and Lashley, C., 2010. Entrepreneurship and small business management in the
hospitality industry. Routledge.
Luiz, J., 2011. Small business development, entrepreneurship and expanding the business
sector in a developing economy: The case of South Africa. Journal of Applied
Business Research (JABR). 18(2).
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and
demographic factors on social entrepreneurship start up intentions. Journal of
business ethics. 95(2). pp.259-282.
Olusegun, A.I., 2012. Is small and medium enterprises (SMEs) an
entrepreneurship?. International Journal of Academic Research in Business and
Social Sciences. 2(1). pp.487.
Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and
entrepreneurship. Cengage Learning EMEA.
Online

Entrepreneurship and small business management. 2016. [Online]. Available
through:<https://illinoisstate.edu/majors/details.php?s=major-cob-entrepreneurship>.
[Accessed on Date 29th may 2017]
Entrepreneurship and small business management. 2017. [Online]. Available
through:<https://www.mhcc.edu/Entrepreneurship/>. [Accessed on Date 29th may
2017]