Small Business Management and Entrepreneurship

This assignment focuses on the core principles of small business management and entrepreneurship. It examines various aspects such as business ethics, success criteria for owners, the impact of entrepreneurial education, and the unique challenges faced by female entrepreneurs in managing both business and domestic roles. The document also explores the role of small businesses in developing countries and their contribution to economic growth.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1 .....................................................................................................................................4
P1 Different types of entrepreneurship ventures and typologies...........................................4
P2 Similarities and differences in entrepreneurial ventures..................................................4
M1Diverse range of entrepreneurial ventures.......................................................................5
D1 Examine the scope development and growth of ventures...............................................5
TASK 2......................................................................................................................................6
P3Assess how SME impact on the economy.........................................................................6
P.4How SMEs will contribute to growth of social economy ...............................................6
M2 Effect of small, medium and large business on the economy.........................................6
D2Critically examine how SMEs impact on levels of economy...........................................7
TASK 3 .....................................................................................................................................7
P.5Characteristics and traits of successful entrepreneurs .....................................................7
P.6Entrepreneruial motivation and mind-set.........................................................................8
M.3 different lines of arguments regarding characteristics of entrepreneurs........................8
D.3 characteristic traits, skills and motivational drivers of successful entrepreneurs...........9
TASK 4 .....................................................................................................................................9
P.7examine how background and experience can hinder or foster entrepreneurship...........9
CONCLUSION .......................................................................................................................10
REFERENCES.........................................................................................................................10

INTRODUCTION
Entrepreneurship is something which is related with starting a new business by an
individual which wants to gain profits and sustainability. Entrepreneurship has been
traditionally defined as to design, launch and start or also to running a business operation of a
firm by which entrepreneur can earn profits and their desired goals. Entrepreneurship
generally begins as a small business for an example start-up company, offering a product,
process or service for sale or hire (Lee-Ross and Lashley, 2010). The people who start up
their own business firm are called Entrepreneurs.in this present report it has been discussed
that there are many forms of entrepreneurship which are now in very much form or hike. In
addition to this it has also been discussed that there are many types of entrepreneurial
ventures and their typologies. Also, there are similarities and differences between different
entrepreneurial ventures. Furthermore, it has been reported that there are some characteristics
of successful entrepreneurs which make them different from others in this industry. Also,
micro and small industries also affect entrepreneurship as well as on economy. It contributed
to the growth of overall economy of country.
TASK 1
P1 Different types of entrepreneurship ventures and typologies
Entrepreneurship ventures means different forms of entrepreneurship which exist in
current world. Entrepreneurship means starting up of business venture and putting efforts to
run, operate their operations which will accomplish their desired and set goals and objectives
of company. In other words, it can be said that it acts like a start-up company which proposes
foods and products or services for sale and hire purpose. Entrepreneurship Enterprise can be
defined as a willingness and capacity to perform different types of functions which are related
to the development, organization and managing a business organization. There are different
forms of entrepreneurial ventures that are as follows:
 Small business entrepreneurship: this is the foremost kind of entrepreneurial
ventures in the market area of industries. Small scale business entrepreneurial
ventures are those in which start-up is done at the small level (Storey and
Greene,2010). It includes various small business entrepreneurs which includes
hairdressers, consultants, travel agents, internet commerce start up etc. The main aim
of small business is to feed the family.
 Large company ventures: large companies have infinite life cycles. Large
companies are those business enterprises which aim to make profits and sustainability.
The main focus of the owners of these companies are to build their image in the
competitive world. They want to explore new things and innovations which can foster
their performance in the market area.
 Social entrepreneurship: social entrepreneurship venture is those in which main
focus is on the creation of those business products and services which are for the
beneficial for the society. These are those social products which are formed to solve
the social needs and wants of societal people.
Different types of typologies that an entrepreneur are engaged with are;
 Serial Entrepreneur: It is the entrepreneur which starts or commences their
business after other or also begin multiple business at the same time.

 Social entrepreneur: He is an entrepreneur which is related to the betterment
of society. This type of entrepreneur performs various types of functions
which are related to social aspect and for overall development of society.
Their basic aim is to create goods and services which serves as a basis for
overall and entire development of people and society.
 Female Entrepreneur: These are those entrepreneurs who revolutionise or
innovate any business activities are called as female entrepreneurs.
P2 Similarities and differences in entrepreneurial ventures
There are many entrepreneurial ventures that are presented in the market industry. It is
to be recorded that there are many similarities and dissimilarities between them.
Entrepreneurial ventures are those which are related to each other in the context of business
enterprises.
The various similarities between small business entrepreneurial ventures and large
scale business enterprises are as:
 Both are the types of business entrepreneurial ventures. These are related to
start-up also, to run, operate and conducting its business creativities.
Small scale business enterprises and large scale business are formed to give an individual to
use its own skills and capabilities by which they can complete their targets and tasks (Burns,
2010).
There are also many dissimilarities between them are as:
Small scale ventures Large scale enterprises
 These are operated by an
individual because to feed and
fulfil the needs and wants of
their families.
 This form of enterprise mainly
focuses on to nourish the wants
of the family.
 Their definition of success is not
to make profits of 1 billion or
over.
 This business enterprise venture
is mainly focus on to make
profits and gains.
 They use their innovation skills,
offers new products to its
customers, that are variant to its
core products.
 Their main motive is to make
profits over 1 billion and over of
it.
There are many differences that are recognised between different types of entrepreneurial
ventures that can be defined as;
Lifestyle entrepreneurship Serial entrepreneurship
This is a form of entrepreneurship which is
related to the art of an entrepreneur whose
way of choice happens or causes to be his
business.
He can be classified as conscious capitalist.
This is an another form of business
entrepreneurship which is related to seeking
or searching the next person with whom he
can share his art.
He can be regarded as business man.
Female entrepreneurship Male entrepreneurship

It is an entrepreneurship, which is started by
female.
Also, mostly female entrepreneurs are older
than male.
Women are attentive on a concept which is
related to good aspects.
It is an entrepreneurship which is
commenced by male.
Male entrepreneurs are comparatively young
On the other hand, men entrepreneurs blame
market forces for any kind og negative
effects.
M1Diverse range of entrepreneurial ventures
Entrepreneurship is the process in which an individual buys a product at a certain
price to resell that particular product at an uncertain price and also there by taking the risk of
profits and loss. Entrepreneurship is the art which has been used by an individual who has an
exceptional insight into societal needs and the abilities to fulfil the needs and wants. There
are many different range of entrepreneurial ventures that are as: Scalable start-up entrepreneurship ventures: these are the small business start-up by
an individual which relates to their vision that they could change the whole world by
exploring new things and services. They have a powerful source of investment from
their venture capitalists.
Small business entrepreneurial ventures: it is that kind of ventures which are small business.
They employ non-governmental ventures. And also they are formed with the mission to feed
their families and to their wants and desires ( Stokes, Wilson and Wilson, 2010). Social entrepreneurship ventures: social entrepreneurs are those innovators and
producers of goods and services who aim to create the products and services that
resolve the issues and problems of people living in the society.
 Large company entrepreneurship ventures: these have finite life cycles. These
enterprises sustain and grow through bringing innovation, offers new products that are
complimentary with their main products.
D1 Examine the scope development and growth of ventures
There is a huge scope, development and growth of business entrepreneurial ventures.
These are very vital for the overall development of a particular country. Entrepreneurial
venture can be defined as a business set up which has been formulated by the individuals for
satisfaction of their desired goals and objectives. These are the activity form which involves
the crucial contribution of the skills and development of an individuals as well as work for
the betterment of the society.
Also these contributes in the total progress of a particular country. As, the small
business enterprises employ the non-governmental employees. They make up of 99.7 percent
of all the companies in UK. Small business enterprises accounts for 38% of the gross
domestic product and also 47 % of the total business employment (Bridge and O'Neill, 2012).
It is clearly clarifying that these entrepreneurial ventures are developing at a speedy rate.

Small and medium business enterprises lay an important role in establishing development in
any country.
Small business entrepreneurs and ventures also subsidise in the job creation and also
helps in an analysis of their value to the economy. Also it has he great impact on the tax
system of the company. These are considered to be an important and crucial because it
enables the entrepreneur to enhance their skills and capabilities.
TASK 2
P3Assess how SME impact on the economy
The small business enterprises impact the economy on the great extent.
Entrepreneurship is the form which gives an individual an opportunity to be cultivated,
motivated and remunerated to the greatest possible extent. Entrepreneurship can change the
way of working and living. Small business enterprise can impact the economy of the country
as well as also the other big institutions. Entrepreneurship can add value to national income
of the country. The small business entrepreneurship can also affect the economy by offering
improved products or technologies from entrepreneurs are able to enter new market to be
developed and new wealth is also created.
It has also been assessed that the small business enterprise contributes around 42% of
the GDP. The GDP can be termed as overall sum of all the gods and services produced within
the country. Also the small business enterprises also effect the political parties of the country.
Also it has been said that there are many other few things that are highly impacted by the
government and other issues. Also, in today’s world, four out of five jobs are created by the
small business enterprises. Small business creates jobs for unemployed people and also
economic growth along with tax revenues that finance the welfare in the country. Small
business enterprises employ large number of people and also diversify the scope of economy.
They are flexible and ready to adapt each and every type of changes in their business
operations (Mariotti and Glackin, 2014 ).
Small and medium enterprises are those enterprises which has a turnover of less than
25 million pounds. Also, if there are less than 250 employees in an organization, then it can
be considered as a SME. In UK, there are around 99.3 percent SMEs, which are a part of a
Private sector of economy of UK. On the other hand, large business are enterprises which has
a turnover above than 25 million pounds. Also, there are employees more than 250. Also, it
has its turnover more than 50 million pounds.
There are different types of business which can be classified as:
 Sole proprietorship: It is considered as the simplest and easiest form of commencing
business. It is that type of entrepreneurship which is started by one individual. he is
accountable for its own profits and losses.
 Partnership: it is an association which is formed with two or more like kind of person
having common goals and objectives. In this two or more partners are there which
form their association for achieving their set goals and objectives. Also, partners are
held responsible for each other acts or deeds done. Partnership deed is formed with a
view to include all terms and conditions which are related to their partnership. It
should be in written.

P.4How SMEs will contribute to growth of social economy
Brexit is a term which is related to the withdrawal of UK from European Union.
However, it is proposed till yet, by British government. In addition to this, the terms an d
conditions of withdrawal have not been specified till now and UK still remains as a part of
EU.
It has a great importance in different parts of world. It can be realised in the terms of
social and economic growth, reduction in poverty etc. It also leads to increased revenue to the
government and improve infrastructure. Also, it will lead to overall development of economy
of UK. In addition to this, it can lead to the improvement of the social security of UK.
Small business enterprises or small business start-up contributes to a much extent to
the social growth of an economy. They produce the gods and services which are likely in the
interest and benefits of individuals and society. The performance of the economy is highly
affected by the Brexit n the UK. The GDP of country has shown an expansion of 0.5 % in the
economy, 0.2 percent above the expectations (Schaper and et. al., 2014). The impact of
Brexit on the UK economy as well as on the small business enterprises is wide ranging
because they are the life line of UK. Also, falling GDP will record a huge impact on the
economy of UK in terms of the overall activity of business and consumers buying their
perspective regarding the products and services.
The 0.5 percent growth is only in the services sector lifting declines in constructing
and manufacturing. Small business enterprises are also more susceptible to shocks since they
generally have a lower field of operation. Small business enterprise is also very useful for the
social growth of an economy. It impacts the economy in such a way that it creates benefits for
all the people living there in (Hatten, 2015). The small business enterprise form strategies and
policies and strategies to make the society more beneficial and happy. The main objective of
enterprises is to change h world through their vision and mission.
M2 Effect of small, medium and large business on the economy
There are many forms of industries in the economy. These can be classified into
small, medium and large business organizations. They impact the economy in their own way.
These companies impact the business enterprises in their separate way.
Impact of small and medium business enterprises are as:
These are the focal point in shaping enterprise policy in the EU. The commission
considers SME s and entrepreneurships as a key which ensures economic growth, job
creation, and social integration in the EU. SMEs are in general can be determined as an
organization in which there are employees who are less than 250 in number (Scarborough,
2012). SMWs are very important part of the economy as it offers around 99% of all the
enterprises and employ on the increasing number of persons. SME s are mainly presented in
manufacturing and to lesser degree in knowledge intensive business enterprise services. Also,
SMEs are vital in terms of employment and gross value added, which is especially in smaller
countries.
On the other hand, large business enterprises also impact the economy in a great way.
Large enterprises implement a higher number of GVA in high and medium or low technology
manufacturing sector. Also, large enterprises can be more enhanced by trade integration,
globalisation and industry consolidation and also explains business cycles even better.

D2Critically examine how SMEs impact on levels of economy
Small business enterprises are generally do not generate high income as large business
enterprises but then also they are important and critical component and also a major
contributor to the strength of local business economies. They impact the different levels of
economies in their own separate ways. These are the business enterprises which employs less
than 250 employees in tier business enterprise. Since 1995. SMEs generated 64% of new jobs
and pays 44% of the total United States private payroll. SMEs have an ability to adapt the
economic climate changes (Dennis Jr, 2011). This is due to the effect that small business
entrepreneurship ate very small business oriented. Also, a flourishing local business will
generate higher taxes, including local taxes also. This money is then contributed to the
establishment of schools and colleges.
Also, small business enterprises affect the other levels of economy. Entrepreneurship
also affect the local, regional and national level of an economy of a particular country. In this
context, novel products, production, modalities, organizational schemes and product market
combinations are created. Also, the entrepreneurship on economic growth also refers to the
entry and exist which however appears to have minimal contributions to the growth of an
economy in the short run. It also encourages self-employment in the country’s individual
which positively affects the social economy of a country.
TASK 3
P.5Characteristics and traits of successful entrepreneurs
To become a successful entrepreneurs, ne should have significant features and
characteristics (Neck and Greene, 2011. ). They have their own skills and abilities which
makes them different from others. In today’s world, there are two one of the most famous and
popular entrepreneurs are namely; Mark Zuckerberg and Steve jobs. The skills and
capabilities of these two are:
 Passionate: the two said entrepreneurs are very passionate about their work. It
contributes a lot to the economic growth and also in accomplishment of their set goals
and objectives.
 Resilient: it is one of the important trait of the business entrepreneurs. It means that
the above said entrepreneurs are very determined towards their work and career.
 Self –Possessed: for becoming a successful man, one should be self-possessed and
also be true and confident to his work.
 Disciplined: It depicts the situation that one should be confident and disciplined while
performing their business operations. They should be disciplined while performing
their activities so that targets can be achieved.
 Goal Oriented: This is an another trait of a successful entrepreneur. The
entrepreneurs form their goals and objectives for which different strategies are
formulated, to achieve high profits. For an instance, Steve Jobs had a goal of founding
I Phone and I pod, so for achieving this purpose, they have planned approaches and
achieved set aims.
Difference between manager and entrepreneur are:

Entrepreneur Manager
 Creates an enterprise by taking
financial risk in order to get
profit.
 Focus is on the business start-up.
 He is the owner of the enterprise.
 Main reward is the profit which
is the result of accomplishment
of the goals and objectives.
 Who takes responsibility of
controlling and administering
the human resources
 Focus is on the ongoing pertains
of firm.
 He is an employee of the
company.
 The reward can be determined in
the context of its salary.
P.6Entrepreneruial motivation and mind-set
In today’s world, people are very much influenced by the entrepreneurs and their
capabilities. These are those people which are upcoming entrepreneurs in the market area.
The successful entrepreneurs have those skills and capabilities which influence and impact
the mind set of other people. They have a mind set to become like effective and compatible
entrepreneurs which have accomplished their desired goals and objectives. In this context,
characteristics of Mark Zuckerberg and Steve jobs have been discussed (Gorgievski, Ascalon
and Stephan, 2011). The interest to become a successful entrepreneur has also been
developed in the today’s world environment because it gives them an opportunity to use their
skills, capabilities and other abilities to accomplish their desired goals and objectives. In
addition to this, there are certain many other things that attracts a person to adopt the talents
of successful entrepreneurs. Mark Zuckerberg has changes the mind set of individuals as at
very short age he has created a successful social site namely Facebook. It has created a
positive mind-set that everything is possible if someone has the determination and will power
to attain the set goals and aims. N the other hand, Steve jobs was the founder of Apple
Company. He has influenced the perception of people by becoming self-confident and
innovative. He proves that being confident and determined towards their work is been the
most wonderful thing.
It can be considered that different traits and characteristics of person plays an
important role in developing positive mind set and entrepreneurial motivation among new
entrepreneurs. They get motivated with different qualities and features of famous
businesspersons. They become influenced by various topographies like determination, self-
motivated, positive thinking etc. furthermore, it can be said that these factors play an
important role in development of entrepreneurs. For an instance, Mark Zuckerberg is a
personality which is full of determination and disciplined. It generates a positive sparkle in
the minds of young generation. They get highly influenced through qualities of successful
entrepreneurs.
M.3 different lines of arguments regarding characteristics of entrepreneurs
There are many characteristics of successful entrepreneurs that are as:
 When a person is set out to become an entrepreneur, it will need to set the objectives
and goals along the way. To ensure the growth of the business, increasing the sales
and hiring new employees and other micro goals require some determination in the
entrepreneurships.

 Entrepreneurs are not afraid to take risks. Profit is the reward of risk taking.
Entrepreneurs ensure high level of confidence in themselves. They think that the job is
properly done if it is done with great level of confidence (Raposo and Do Paço, 2011). They
focus on the most challenging factor which makes them different from others and also they
end up with the finish line with a reward.
A successful businessperson always tries to learn something new and innovative. Industries
constantly change and evolve but only those will survive which constantly learn something
different for their objectives (Sampaio, Thomas and Font, 2012).
 In addition to this entrepreneur also understand that failure is the part of the game and
accepts it with all their heart. It also provides some learning experiences which
provides them an opportunity to learn from them and overcome of it.
 Entrepreneurs are also passionate about their business and abilities. It means that they
have an opinion that one should love and respect their work.
D.3 characteristic traits, skills and motivational drivers of successful entrepreneurs
Entrepreneurs are the persons who have the skills and capabilities to take risks and
gain profit as a reward. They have different traits and characteristics which make them
different from other managers and people. Entrepreneurship can be defined as in which
companies are set up on the basis of the short level as well as like start up business. These are
the persons who run, operate and conduct its business operations in an amicable manner.
There are many kills and traits as well as tactics of business entrepreneurs which motivates
and guide other people as well. They make them as their ideal person (Ligthelm, 2010). For
an example, Mark Zuckerberg has the ability to face the challenges and opportunities which
made him one of the successful entrepreneurs among all in very short age. It is an inspiration
to each and every upcoming entrepreneur. Also, the traits of successful entrepreneurs
motivate its employees too. These people set the standards till which they expect its
employees or workers to perform.
For an example, Bill gates is the richest man in the world. His basic rule of success is
to be focused on what is required and needed to fulfil the set goals and objectives. in addition
to this, Steve jobs is also one of the famous and successful man in the world. He believed that
one should love and respect his or her work, which will enable them to move forward in the
direction of their goals and objectives.
TASK 4
P.7examine how background and experience can hinder or foster entrepreneurship.
Background and experiences play an important role and foster the entrepreneurship.
These play an important role in developing the entrepreneur skills in the people. Background
means that one’s family is also involved in the same business. If an upcoming entrepreneur
will get a positive background, then he will be able t learn all good and bad experiences from
his family. That will also help them to learn the lessons whether it should have been one or
not. Background is somehow interrelated to experience in any manner. Experiences can also
hinder and foster the performances of the entrepreneurs (Fassin, Van Rossem and Buelens,
2011). If he is having god experience, then he will let that increased so as to enhance its
productivity and efficiency. On the other hand, if he does not have good experiences it will

hinder the performance as well as lead him to again why he has started this business.
Background is also very important because it gives a person an experience which can be good
or bad. Good experiences can lead to better productiveness and efficiency and bad
experiences can lead to decline in the rate of success of their enterprise.
There are different rewards and drawbacks of entrepreneurship which can be
classified as:
Advantages:
 New ideas and innovations are created by entrepreneurs.
 Many entrepreneurs find this form of business very interesting and innovating along
with different.
 It involves freedom given to person who wishes to enter into entrepreneurship in the
form of making their own decisions and set own goals and objectives.
Disadvantages:
 It involves the contribution of long hours for working and emotional and physical
torture etc.
 Also, it creates a possibility of failure at times during working and conducting their
operations.
Various aspects are there which affects the working of entrepreneurs, that can be
characterised as background, education family, social networks along with gender and
nationality etc. if the background and family of a person is of entrepreneurship nature, then it
will create a positive impact and benefits of a person. On the other hand, education also, has a
great influence on entrepreneurship.
It can be analysed that social network of a person also has a great impact on
development of entrepreneurship. If a person is in a contact with wide range of persons, then
it will foster its area of operations. If social network of a person is not in a good aspect, then
it will not enhance the working area of business and ultimately lead to hinder the
performance of entrepreneurship.
CONCLUSION
From the above report it has been analysed that the entrepreneurship is the most
popular and upcoming highlighted thing in today’s era. This is concerned with the ability of
the person to run and operate those enterprises which are under their control. It is an
opportunity given to them for utilising their expertise and know- how so that they can fulfil
their dreams and objectives for which their business enterprise has been established. This
report also includes that there are many characteristics and traits of business entrepreneurs
which make them different from the managers.

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