Entrepreneurship and Small Business Management

This report explores the various types of entrepreneurial ventures and their typologies. It also assesses the impact of micro and small businesses on the economy and explains the importance of small business and startups in the growth of the social economy.

HNBS 309
ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................................2
LO1.............................................................................................................................................................3
P1 Examine different types of entrepreneurial ventures and explain how they relate to their typologies
of entrepreneurship..................................................................................................................................3
P2 Similarities and differences between entrepreneurial ventures...........................................................5
LO2.............................................................................................................................................................6
P3 Assess relevant data and statistics to illustrate how micro and small businesses impact on economy 6
P4 Explain importance of small business and business start-ups to growth of social economy...............8
LO3.............................................................................................................................................................9
COVERED IN PPT......................................................................................................................................9
LO4.............................................................................................................................................................9
COVERED IN PPT......................................................................................................................................9
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10
INTRODUCTION

Entrepreneurship and small business management refers to an creative term in today’s
business world as it shows as a heart of the every enterprise because it helps the entrepreneur to
take the risk and earns a high profit margin and large growth so that they can sustain in the
marketplace for a longer period of time. This term also helps on enhancing the living standards
and also provides benefits to the economy of the country. This report explains the various types
of entrepreneurship ventures with their typologies so that identification would be easy and
effective and this study helps in enhancing the knowledge related to the entrepreneurship and
small and start-ups business ventures by using similarities and differences of that. Further it
shows the relevant statistics and data that shows the impact on the economy. It also suggests the
significance of small and start-ups business in the social economy. Further it shows the
characteristics, traits and skills of entrepreneurs that can help in to become a successful in their
life. At last it involves their background and experience that can hinder and foster to become
successful( Alsafadi and et. al., 2020).
LO1
P1 Examine different types of entrepreneurial ventures and explain how they relate to their
typologies of entrepreneurship
Entrepreneurship- It refers to a extraction and creation of the value by taking the financial risk
for earning the higher profits and longer sustainability. This is an effective process that helps in
designing, running and launching the new business for maximizing the profits for longer survival
of firm. Entrepreneurship can be run by a person who called entrepreneurs that includes
technology, services and activities to get customer attracted(Henry, Foss and Ahl, 2016).
Types of entrepreneurship- It includes various types of entrepreneurship that can be shown
below.
 Large company entrepreneurship- This term denotes as those business ventures that
are working with high capital, more monetary value for satisfying the customer’s needs
and wants and gaining the competitive advantage in the same industry. They are mainly
worked for maximize the revenues and satisfying the customer’s demands by focusing on
adopting the advanced technology. Example- Google, Yahoo, Apple etc(Bogdanova and
et. al., 2016).

 Scalable start-ups entrepreneurship- It refers to that type of entrepreneurship that only
work with innovative ideas and for this they search for that business model that turn their
organisation for earning the new profits and getting more growth. for examples-
Facebook that is established for earning profits and revenues and this is operated by Mark
Zuckerberg
 Small entrepreneurship- This type of business venture is working with small capital and
limited resources and they work for longer sustainability to feed their individual family
members. Small enterprise can contribute more on the UK economy by providing
employment to local people so that they can sustain in market and earns small profits for
their regular livelihood. Examples- Adam Ludwin is a small and local entrepreneur of
UK.
 Social entrepreneurship- In this framework of entrepreneurship is operated for
satisfying the needs of people in the society by solving their issues in an innovative way
for the welfare of the society and their living peoples. Example- Gravity light is the best
social entrepreneurship in UK that is established by Martine Riddiford(Kuckertz and
Prochotta, 2018).
Typologies of entrepreneurship – There are various typologies that are relate with the different
entrepreneurial ventures that can be shown below.
 Social entrepreneur- This type of an entrepreneur are working for the benefits of the
society and their people and provides the best solutions to the problems by arranging the
funds from the government and charity so that goals can be achieved in time. They
essentially focus on the welfare of people and their living standards rather than earning
profits and revenues. In this social entrepreneurship ventures can be included(Belitski and
Heron, 2017).
 Male entrepreneurs- It refers to that typology which is belong to the large
entrepreneurship where working can be done with proper control and autonomy where
they only focus on working rather than emotional stability. They generally not focus on
social welfare as compare to earn profits and sustainability.
 Serial entrepreneur- In this typology scalable start-ups business are involves where
serial entrepreneurs are working with the innovating thoughts by arranging the financial

resources from the venture capitalist so that they get the funds and provides the
innovative goods and services for longer sustainability.
P2 Similarities and differences between entrepreneurial ventures
Small and large entrepreneurship similarities and differences
Basis Small entrepreneurs Large entrepreneurs
Differences Small ventures are working
with 0 to 10 employees and
they are working with limited
capital and financial resources
in the local area. in this whole
business can be tackle by an
individual person due to this
they are sole responsible for
gaining profits and bearing
risk(Antoncic and et. al.,
2015).
This type of entrepreneurship
venture are working with large
number of workforce that is
more than 250 where they
work with more capital and
resources for gaining the
market share. In this number
of people are involved who
can take risk and generate
profits on dividing it in the
equal proportion.
Similarities They majorly work for their
individual family for earning
profits and growth within the
market according to their set
resources and capital in this
they work on satisfying the
needs of customers so that
they get attracted towards it.
This type of entrepreneurs are
generally work for gaining
more profits and market share
as per their resources and
investment by satisfying the
needs of people of society so
that they can buy more goods
and services.
Scalable and social entrepreneur’s similarities and differences
Basis Scalable entrepreneurship Social entrepreneurship
Similarities In this type of
entrepreneurship entrepreneur
These entrepreneurs are
working with creative ideas

are working with innovative
ideas for getting more profits
and growth where they can
adopts the Facebook and other
social media application to
attracts the customers.
for the society people by
providing the solutions to the
problems for this
entrepreneurs can adopts the
social media and traditional
tools to promote their products
and services so that large
people get attracted(Lima and
et. al., 2015).
Differences The main purpose of this type
of entrepreneurship is to
working for earning higher
profits and maximizing
growth by providing
innovative products ands
services to the society
The major objective of this
type of firm is that they only
focus on the satisfying the
needs of customers and
demands by solving their
problems rather than earning
profits and they generate the
funds for customers by
donations and government
funding.
LO2
P3 Assess relevant data and statistics to illustrate how micro and small businesses impact on
economy
Micro business- This type of organisations are very small in size but create a major impact on
the economy of the country by providing the varieties of services. In this firm there are limited
number of employees are involved i.e. 0-9 and they earns a revenue of £2 million. This helps in
enhancing the living standard of the person by giving them employment.
Small business- It refers to those firms which involve the 10-50 employees in their business for
earning higher profits. They work with a 28 million revenues on an annual basis. They are

established for satisfying the local people needs with the innovative goods and services and
enhancing the economy of the country like UK(Kuratko, Hornsby and Hayton, 2015).
This data shows that in today’s business environment small and micro business create
more opportunities for the people and the economy of the country. It shows that small and micro
business provides 15.3% people to the employment so that they can enhance their living
standards (UK SME Data, Stats & Charts. 2020).
Figure 1 source UK SME Data, Stats & Charts
Impact of small business on economy

Small and micro business is established for gaining profits and it also impacted the
economy of UK in different level that can be shown below.
 Local level- On this level small and micro business can provides the employment and
fulfills the needs of the people by providing the goods and services as per demands in the
market. with this local people needs are satisfied on reasonable rates due to this their
living standard will be enhanced(Audretsch, Kuratko and Link, 2015).
 National level- In this level all small and micro business can helps in enhancing the
economy of the country by emphasis on the innovative thoughts for capturing more
opportunities by the business so that they earn higher profits.
 State level- On regional level this type of businesses can helps in developing the
employment and eliminates the problems related to unemployment in the country. This
helps in expanding the abilities of candidates so that they get more pay and this helps in
getting more market growth and share(Karadag, 2015).
P4 Explain importance of small business and business start-ups to growth of social economy
Social economy- It refers to that economy which is rich in differentiation of
organisations such as cooperatives, Mutual and associations, foundations etc. where they can
earn profits for enhancing their living standards and it will also enhance the social economy by
increasing the infrastructure of the society. In this small and start-ups business can place a major
contraction in the GDP of the nations. It also has more importance in the growth of the economy
and some of them can be explained below(DeTienne and Wennberg, 2016).
Importance in the growth of social economy
 Economic growth- It is the major importance of the small and start-up business because
it provides the best opportunity for producing the high quality goods and services for the
customers due to these firms may pay their taxes without facing any obligation. This
business enterprise morale boosted due to high revenues and growth and this will
benefitted the economy of the nation in an effective way.
 Enhanced standard of living- Small and start-up business can provides the major
opportunities to the people in enhancing their living standard in a varieties of ways such

as giving employment, offers innovative goods and services that is need by the customers
on reasonable prices etc(Neumeyer and et. al., 2019).
 Employment- small and start-ups business major importance is that they can provide
employment opportunity to the local area people so that they can feed their family and
friends due to this there purchasing power will increased and it will shows their better
living standards.
LO3
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LO4
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CONCLUSION
From the above explained report it is to be summarized that entrepreneurship and small
business management is a prominent term because it helps the person to enhance their living
standards by creating various effective approaches. It inculcates the different types of
entrepreneurship ventures and their effective relation with the typologies so that it is easy to
bifurcates them according to their nature and capabilities. Further it helps in enhancing the
knowledge related to importance of social economy and the importance of small and start-ups
business that will generate more innovation and employment in the country. Therefore, it also
inculcates the characteristics, skills and traits of the successful entrepreneurs in the country.
Adopting the Ocean model helps in understanding the mind of an individual that reflects the
motivation and mindset of the people. At last it shows the entrepreneurs background and
experience that can encourage or hinder their entrepreneur’s time.

REFERENCES
Books and Journal
Alsafadi, Y. and et. al., 2020. The mediating impact of entrepreneurs among administrative
entrepreneurship, imitative entrepreneurship and acquisitive entrepreneurship on
creativity. Management Science Letters. 10(15). pp.3571-3576.
Antoncic, B. and et. al., 2015. The big five personality–entrepreneurship relationship: Evidence
from Slovenia. Journal of Small Business Management. 53(3). pp.819-841.
Audretsch, D.B., Kuratko, D.F. and Link, A.N., 2015. Making sense of the elusive paradigm of
entrepreneurship. Small Business Economics. 45(4). pp.703-712.
Belitski, M. and Heron, K., 2017. Expanding entrepreneurship education ecosystems. Journal of
Management Development.
Bogdanova, S.V. and et. al., 2016. Management of small innovational enterprise under the
conditions of global competition: possibilities and threats.
DeTienne, D. and Wennberg, K., 2016. Studying exit from entrepreneurship: New directions and
insights. International Small Business Journal. 34(2). pp.151-156.
Henry, C., Foss, L. and Ahl, H., 2016. Gender and entrepreneurship research: A review of
methodological approaches. International Small Business Journal. 34(3). pp.217-241.
Karadag, H., 2015. Financial management challenges in small and medium-sized enterprises: A
strategic management approach. EMAJ: Emerging Markets Journal. 5(1). pp.26-40.
Kuckertz, A. and Prochotta, A., 2018. What’s hot in entrepreneurship research 2018.
Kuratko, D.F., Hornsby, J.S. and Hayton, J., 2015. Corporate entrepreneurship: the innovative
challenge for a new global economic reality. Small Business Economics. 45(2). pp.245-
253.
Lima, E. and et. al., 2015. Opportunities to improve entrepreneurship education: Contributions
considering Brazilian challenges. Journal of Small Business Management. 53(4).
pp.1033-1051.
Neumeyer, X. and et. al., 2019. Entrepreneurship ecosystems and women entrepreneurs: a social
capital and network approach. Small Business Economics. 53(2). pp.475-489.
Online
UK SME Data, Stats & Charts. 2020 [online]. Available through
<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/>