Entrepreneurship: Theory and Practice

This assignment delves into the realm of entrepreneurship, examining theoretical frameworks, practical applications of business models, and the crucial role of entrepreneurship in fostering economic growth. It draws upon various academic sources to analyze key concepts, explore the evolution of entrepreneurial thought, and discuss the contemporary challenges facing entrepreneurs.

ENTREPRENEURSHIP
AND SMALL
BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P.1 Different types of entrepreneurship ventures and their relationship with typology.............3
P.2 Similarities and differences between entrepreneurial ventures...........................................4
TASK 2............................................................................................................................................5
P3 Impact of the micro and small business enterprises on the economy....................................5
P4 Importance of the small business and business start up to grow in social economy.............6
TASK 3............................................................................................................................................8
P.5 Characteristics, traits and skills of successful entrepreneurs................................................8
P.6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set................................................................................................................................9
TASK 4..........................................................................................................................................10
P7 Impact of the background and experience on the entrepreneurship....................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Efforts make generate production by a man force to provide employment to unemployed
peoples(Bruton, Ahlstrom and Li, 2010). An entrepreneur starts a small business to develop it till
to enlarge their business structure. Many types of risks are available to start up a new business so
they have to analyse all the risks which can affect on the business. Entrepreneurship is an
essential factor to start up, it helps to a person to develop their financial status and as well as in
their country's economy. This present report is based on the small business enterprises which is
essential for the nation to develop the economy and as well as to reduce the economical threats
of the UK. This is report is having content on the different types of entrepreneurial ventures like:
small business, large company and social entrepreneurs. This report will show difference
between ventures and having type of similarities in them. Enterprises which are working on the
small effects on economy of the UK which will be elaborate in this report. Background and
experience can impact on the entrepreneurship so it is essential for the entrepreneur to have some
experience in their field.
TASK 1
P.1 Diverse range of enterprises and relationship with typology
Entrepreneurs is a term which means initiating their idea,values and thoughts in manner
of starting a venture which offers different services and products to sale. This is also been
defined as willingness or capacity to create something new, organizes although managing a
venture taking so many threats for a motive of making profit (Alsos, Carter and Ljunggren,
2011). It involves high risks in start up of business. Risks can occur through insufficient funds,
limitations in the fund investment, lack of fluency in the work. The Venture authority should
successfully work over these problems to increase its strategies and strengths. Some of the newly
developed enterprises are here:
 Small sized: It involves start up of business by entrepreneurs. Small business ventures
are those who operates its own business. Local workers or people has been hired by the
owner with the main aim or motive to make profits. Small business entrepreneurship
includes grocery stores, hairdressers, travel agents plumbers and electricians etc. The
main aim of small business entrepreneurship is to allow customers to purchase products

to satisfy their needs and wants and earn profit out of it, not to grow a industry with
worth 1500 billion dollars (Awogbenle and Iwuamadi, 2010). They do not have any
source of loan or venture for funding of business, so entrepreneurs take loans via family
or friends or small business loans. Scalable start up ventures: Scalable start up business are established to change vision of
the world. In this they attract investment from venture capitalists. Scalable start up
ventures aim to have a maintained profit after some period of time. In this type of
ventures best and brightest employees are hired in order to accomplish the objectives of
entrepreneurs. Their focus is on the rapid expansion of business. This form of venture is
not adopted by entrepreneur because it attracts almost all of the risks capital. Large company venture: Large company venture is that form which involves a huge
amount of capital investment by the owner (Carraher and Paridon,2015). The major
factors which enable it to grow are; sustaining innovation, offering new products and
services in order to attract customers, that are in addition to its core products etc. large
companies have finite life cycles. Changes in preferences and taste of customers,
legislation and new competitors can create pressure for more disruptive innovation. Social venture: These kind of business setup are having focus to resolve issues of the
society by their workings, mainly these business are having focus on the social problems
and these provides products and services to resolve possible social needs. This type of
entrepreneurship is working for the societal purpose.
These above mentioned types of entrepreneurship is somehow related with typology.
Entrepreneurs of Small business have lack of knowledge, experience and money. Entrepreneurs
basically focuses in making profit for feeding hi family. On the other hand,large business
comply, with all strategies and norms by company in order to achieve the goals and objectives
with new ideas and innovations (Carsrud and Brännback, 2011).
P.2 similarities and dissimilarities in between ventures
Entrepreneurial venture is the type of entrepreneurship. There are different similarities
and dissimilarities between entrepreneurial ventures. Business entrepreneurial venture is no
ending of finding new avenues for wealth creation, by the firm for its employees. Although,

social venture works for the society as whole. Some of the variations in between small and social
entrepreneur are as follows:
Goals: Entrepreneur is one for whom success is achievement of financial and business
goals that are in accordance with the interests of shareholders. On the other hand social venture
solve the problem of society so that they can live in a better way.
Mindset: The huge difference in between social and small venture is related to mindset.
Mindset of entrepreneur in social venture is to work for society and its well being. Although the
aim of small business is to earn profit by his work in market.
Value creation: Small business provide satisfaction to its customers by providing the
product and service in competitive prices and social ventures is having aim to serve society by
creating a positive impact of their target customers and provides their hand in economic value.
(Chittithaworn and et. al., 2011).
Resemblance in between the social and small business are:
The social and small business is initiated and taken to growth by small entrepreneurs. They have
new ideas and skills of creating and developing a business. They start with small amount of
capital in initial stage. Entrepreneurs are one who take calculated risk to earn profit. The main
objective of both ventures is to start a venture for achieving its goals and targets. Entrepreneurs
are owner of firm and they can take any decision at any time. (Dennis Jr, 2011).
TASK 2
P3 Affect of small and medium business over the economy
Small and medium businesses are the base of developed countries, so it is required for
UK to have more these types of business in the UK to support their economy. These types of
organisations are having direct and indirect on the influence. These business enterprises are not
having a large turnover to contribute in the economic growth and most of the business are
running in the local markets(Defourny and Nyssens, 2010). But these are having so much
importance in the UK economy. Some points are here to describe the impact of the UK economy
of the small business enterprises;
Direct impact:
Support in the economic growth: Both types of business supports in the economic growth and
in year 2016 small ventures had their share of 1.8 trillion(47% is of private sector). Most of the

enterprises are owned and taken care by private entrepreneurs. They do have many sources of
raising funds for their ventures.
Increase in the employment rates: Increase in the employment rates- in UK there are many small
business are run by private entrepreneurs who gave employment to every youth and this is
increasing the rate of employment. There are large number of small ventures are run in UK. So
these venture introducing new opportunity that help in declining number of unemployment rate.
Public of UK are now attracted towards the new job which has a big impact on employment
increased rate. The increment in employment made a big difference from 1971 to 2016 (Dacin,
Dacin and Matear, 2010). The rate has taken growth from year 1971 and it has reached to 74.6%
Indirect impact:
Employment: These organisations are providing opportunities to their unemployed peoples to
make their contribution in the economic growth. By this entrepreneur is using their unskilled
peoples to execute their business activities.
Support in the big structured organisation: Most of these types of organisation are making
supplies to the big structures organisation. These are a supplementary organisations which are
working for them.
Change in the business ideas: Most of the the small business enterprises are having new business
ideas to generates products and services. Somewhere it helps the other organisation to make
changes according to their ideas and thoughts.
These above presented points are impact on the UK economy which is supporting to the
economy. These private organisation are providing opportunities to unemployed peoples and
using them in the activities which is supporting their economic growth of productions. By this
UK economy can reduce the negative affects of the external economical factors(Welter, 2011).
Which helps them to make strong base of economy which helps in the recessional conditions.
P4 Importance of small and medium business for start up and grow in social economy
Social Economy: Private and public organisations are working as joint ventures for
cooperatives, for non profit organisation,for society and charities. This is a third sector of the
economy which is a combination of the privates and public organisation. Small business
enterprises are having a vital significance to grow social economy, most of these organisation are
having direct influence on the social economy. Some points are here to describe the significance
of the small business enterprises on it:

Job creator: These small and medium business create new job opportunity and provide job to
public living in society. Most companies use their internal contact to hire people for job.
Somewhere these kind of things helps in the growth of economy as unemployment declines and
money rotates in market. So, the entrepreneurs use their own contact in recruitment and selection
process of candidates.
Innovative thinking: Most of the entrepreneurs are using their innovative minds and thoughts to
start up a new business. They are having new business tactics which helps to the company to
increase their products and services(Bosma and Levie, 2010). As well as it has huge importance
on the society to improve the level of thinking of the peoples. By this people in companies
increases the level of thinking. The entrepreneur spread their level of innovative ideas in society
so that people can see the things with different point of view.
Providing skills: Most of the peoples which are involved in the organisations are not
fully skilled according to the organisation. Most of the persons are not having skills according to
the demands of the enterprises. So they are providing training and development program to their
employees to be them according to the need of the organisation. Entrepreneurs are providing
skills to their employees for their betterment which is a making peoples skilled which is a type of
betterment of the society. By this they are skills to unskilled peoples which is making their
productive for the organisation's needs.
Motivator for self development: Most of the small business enterprises are motivating
unemployed peoples for employment. Peoples are getting influenced by the employment so they
are getting motivated by the employed peoples for their financial development. They can
increase their standard of living by increasing their earnings.
Financial supporter: These organisation provide financial support to people who are
living in society. The firms are having their direct connections with employees so that they can
provide them financial support when required in critical situations.
The above given thoughts are related to significance of small business enterprises in social
economy(Barringer, 2012). Most of the entrepreneurs are using partnership with the public
enterprises to use their technologies and techniques.

TASK 3
P.5 Successful entrepreneurs kills and different traits and characteristics
Businessman is a person who exercises initiatives by organizing a venture for utilizing an
opportunity and also act as a decision maker of business firm. Decisions can involve what,
how,and how much of goods and services will be produced by firm, etc. The entrepreneur is a
person who provide capital risk, take risk, monitors that and controls the whole activity. There
are two successful entrepreneurs across world who have given the definition of good
entrepreneurship (Durst and Runar Edvardsson, 2012) . MARK ZUCKERBURG, he is the man
who introduced and developed the application “Facebook”. Through this application people gets
connected across the world. Facebook helps to share photos, videos etc. and the other one is
BILL GATES, co-founder of Microsoft company and he is the richest man in this world. It need
some important characteristics and traits to be a successful entrepreneur The main characteristics
of are as follows:
Innovative : it is very important to have innovative skills in the personality of an
entrepreneur. Innovation leads to better production and offerings of new products and services
Disciplined: The entrepreneurs are discipline in nature of their work. It means they are
focused on what they want to achieve or on work and eliminates hurdles or distractions to
achieve their goals. Entrepreneurs are those who plan each and everything by their own like
strategies and outline the tactics which help to accomplish them. They are disciplined enough
who takes step forward to achieve their objectives. (Ebert and et. al., 2014).
Confidence: entrepreneurs are confident about what they are doing. They are ready to
take risks in any manner. A good entrepreneur is confident about their knowledge and have faith
own themselves that their business will succeed. They exclude everything which affects their
confidence in whatever they do.
Open minded: They have a thinking that every situation and moment is a business
opportunity. Ideas are generated for workflows in firm as well as efficiency along with the
people skills and their potential for generating new business. Entrepreneur has an ability to look
around and focus on their goals (Fayolle, 2013).
Self motivated: a good entrepreneur is self motivated as there is no financially reward in
the beginning stages of starting new business. They patiently wait for progress and success in
further stages by doing efforts like taking actions that are necessary to facilitate these things.

Full of determination: a good entrepreneur is full of determination, which helps him to
set the goals and objectives clearly. Growth of business, increased sales and hiring new
employees requires several micro goals which can be accomplished having full determination
(The Role played by Small Business in Economic Development. 2017).
Difference between Entrepreneur and Business Managers
Entrepreneur Manager
Enterprises are created by taking risk to earn
profit.
Managers are those in organisation who is
having responsibilities of controlling and
administration.
This mainly focuses on business start up Managers has its control over ongoing
operations.
Entrepreneur are the one who is motivated
through their business goals and achievement
priorities.
Managers motive is to get power
It is considered as the owner of its firm
(George and Bock, 2011).
It is an employee which has been hired by the
owner of company in order to manage the
operations of business.
He is having confidence and self motivated
person to achieve the goals.
Managers has to motivate its employees in
order to achieve the set targets and objectives
of company.
P.6 Assess what aspects of the entrepreneurial personality reflect
entrepreneurial motivation and mind-set.
Entrepreneur have the ability to operate business in their way by risk
taking risk and earning profits. They have many features which make them
unique in world among other entrepreneur (Infographic: Why Business
Growth Is Essential To the Great Britain. 2016). Other upcoming
entrepreneurs can be motivated and they make ideals to existing

entrepreneurs so that they can learn their tactics and skills to become a
successful entrepreneur. As earlier we talked about, MARK ZUCKERBURG
and BILL GATES they are most powerful and richest person who had
inspired many people with their new thoughts and ideas. Both
entrepreneurs are one who has innovative ideas, technicalities and
determination to achieve something makes them unique from other. (Jones
and Rowley, 2011). Mark Zuckerberg shows way that it is not necessary to be
of old age to start up a business. He has a capability of inspiring many
people and increased their thought power and they are launching new
application in the world of technology. A good entrepreneur should have
discipline in it so that all the plans and goals can be achieved and
completed at time. Also, Mark Zuckerberg has created the passion and
spirit in the minds of new entrepreneur to continue till the work has done or
completed(Leitch, Hill and Neergaard, 2010). On other side, BILL GATES gave an
opinion as “if someone dies poor than its his/her biggest mistake, with this
thought the bill gates has changed many thought of people and brings out a
passion of doing something in their lives of new entr3epreneurs. His open-
minded nature and self motivation are important factor in being successful.
One should have a self confidence and abilities to work hard and effectively
manner than anybody else. This should not turn into overconfidence. Both
are of views that one should overcome its problems and issues by utilizing
its power and skills, abilities in a best possible manner. They are also taught
the entrepreneurs that there should be an effective communication in the
business firm. Also they have conveyed a message to people that everyone
should rise early in the morning (Martin, McNally and Kay, 2013).These thoughts
makes a person motivated and effective. Also, new entrepreneurs get
motivated by the abilities and thoughts of Mark Zuckerberg to never give
up on work till its done. Failures are the learning experience of getting
success. They created a passion and enthusiasm for entrepreneurship
among people. In today's world, people are getting influenced by the

abilities and achievements of Mark Zuckerberg and Bill gates (Onetti and et. al.,
2012).
TASK 4
P7 Impact of background and experience on entrepreneurship
Background of entrepreneurship has a big impact. Most of entrepreneurs are influenced
by their status, background and history. Each entrepreneur is having their own culture and they
are having their own educational and standard of living. The backgrounds are making people
influenced in their business activities. Backgrounds determines the thinking as well as the point
of view to consider the different aspects of themselves. It sets the status of mind to think positive
and negative (Business and entrepreneurship skills and experience. 2013). So it is required for
the entrepreneur to think beyond their background. If people has faced financial crisis or poverty
in their lives, it make an influence on financial considering, somewhere these entrepreneurs are
having a positive thinking for below poverty level people and they are helping others by their
business ideas (Herrington, and et. al., 2010). Entrepreneurs has influenced their mind set by
their educational backgrounds, most of the business man who want to set their business are using
their education in starting their business. It helps to them use their educational learnings in
practical conditions.
Experience is also influencing entrepreneur to take decisions, start up give an experience
to the entrepreneur about what are the positive and negative for them. It helps them to considers
things and helps to them to use positive aspect for them. Bad experience makes a negative
impact on the business man and it decrease their motivations so they have to learn by these
negative impacts to use them positively. Experiences can be divided in to two parts good and
bad, good experiences increase the motivational level of the entrepreneur. This helps to them to
increase their productivity and efforts for their business. So it can be foster factor for them to
increase their potentials and as well as efforts for their small business enterprises. It makes a
positive impact on the decision making power(Kirzner, 2015). Bad experiences are a type of
demotivating factor for them, it affect their decision making power which is a hinder for them. It
makes a compulsion for them to take better decisions to reduce the risk of wrong decisions.
Entrepreneurs have to learn from the bad experiences to reduce the chances of the same.

So experiences and backgrounds are having huge impact on the entrepreneur and
entrepreneurship so it is based on the entrepreneur to takes this in a positive may to use their
experience for organisation well fare. It is essential for the entrepreneur to take learnings of their
backgrounds in a positives manner for the betterment of the business ideas and as well as their
decision makings.
CONCLUSION
The above report is having detail research on entrepreneurship in UK and how this is
having influence over the economy. Somewhere entrepreneurs have some experience in their
field to make better decisions in different sectors like; finance, management, marketing etc.
Feature and competencies increases the efficiencies of entrepreneurs. Discipline, confidence and
self motivation helps them to take better decisions related to their work field. Some
entrepreneurs uses their ideas like they start with small business. Few changes in business
priorities can help them to increase the effectiveness and productivity of business as per demand
of stakeholders. Small or medium scale entrepreneurs are essential because they help in the
economic development and it reduces errors from there.

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