Entrepreneurship and Small Business Management

This assignment delves into the crucial roles of entrepreneurship and small business management within economic development. It requires students to examine the defining characteristics of successful entrepreneurs, explore the diverse challenges and opportunities faced by small businesses, and analyze the broader impact of these entities on economic growth.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship..........................................................................................................................3
P2 Similarities and differences between entrepreneurial ventures..............................................4
TASK 2............................................................................................................................................5
P3 Influence of micro and small business on the economy of the United Kingdom...................5
P4 SME as well as start up contributes within the growth of the social economy after Brexit...6
TASK 3............................................................................................................................................7
P5 Determine the characteristics, traits and skills of two successful entrepreneurs which
differentiate them from other business managers........................................................................7
P6 Assessing how aspects of the entrepreneurial personality, reflect entrepreneurial motivation
and mindset..................................................................................................................................8
TASK 4............................................................................................................................................9
P7 Background and experience can hinder or foster entrepreneurship.......................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The concept Entrepreneurship as well as small business management emerges as the two
pillars that are driving the economy of United Kingdom. With the assistance of entrepreneurship
the country possess the ability to make utilization of new products and services that are being
offered by the Entrepreneur. By the means of SME the economy of UK has the ability earn
greater amount of revenue (Abreu and Grinevich, 2013). The present report lays emphasis over
the contribution made by SME within economy of UK after Brexit. Apart from this it would
focus on the varied kinds of ventures that are being established by the Entrepreneur in
accordance with their aims as well as objectives. After the evaluation of the difference among
them, the features, skills and traits of entrepreneur would be discussed that assisted them in
becoming successful within their venture. The two successful entrepreneur Richard Branson as
well as Mark Zuckerberg hurdles would be focused that affects the growth within their career.
TASK 1
P1 Different types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship
Entrepreneurship could be stated as setting up of business that is established by an
individual for earning profits. Such individuals possess an innovative idea which relates to
convert the same in practical application so that desired results could be attained (Cerrato and
Piva, 2012). Following are the different entrepreneurial ventures which are discussed underneath
in relation to assess different aims and objectives such as-
 Small business entrepreneurship- It is one of the best entrepreneurial venture that helps
individual to start a new venture with a unique or innovative business idea. There are
different types of businesses that are involved in SME such as small grocery stores,
barber shop, plumbers, travel agent etc. However, main aim of such small business
entrepreneurs that they possess innovative idea and through that they earn profits. Within
UK such type of businesses are easily witnessed and thus help individuals to achieve
their targets. Carrying out SME helps in serving customers and also raising opportunities
for other people for getting job such s helper so that their standard of living could be
enhanced (Drucker, 2014). Thus, government encourages such entrepreneurs to start
their ventures and therefore it helps them to attain desired results. Here, typology is that
individuals earn profits to feed their family.

 Sealable start up entrepreneurship- Further, it is another type of entrepreneurial venture
and thus it is related to innovation that helps in influencing investors who wish to pitch
for their favourite business ideas. Here, the vision of investor is that business idea of
entrepreneur is favourable and it will bring change in the world. Thus, because of their
long term vision, it helps business to build different growth potential and thus enhance
their brand reputation in market (George and Bock, 2011). The typology of such venture
is that they aim to provide innovation and different unique products or services in regard
to attract customers.
 Social entrepreneurship- The stated meaning of such method assesses that such
entrepreneur assists in providing social services to people for the benefit of society.
However, they do not work for attaining profit and thus carry out welfare of people. In
such type of ventures entrepreneur possess the ability to render services and helps in
overcoming the issues so that desired targets could be attained (Grenier, 2011). Here, it is
being categorized as non profit organization and thus establishes the business in terms of
serving society.
P2 Similarities and differences between entrepreneurial ventures
It can be assessed that there are various differences and similarities between the ventures
which are as follows-
 Size and structure- The size of SME is very small as they are made to meet the
requirements of their owner. While, large businesses are huge in size. Such businesses
aims to generate huge amount of job opportunity within the country and thus it possess
impact upon the employment rate so that economic growth could be attained. Similarly,
in UK, businesses such as TESCO and ASDA are large firm that helps in enhancing the
economy so that best results could be attained (Haeussler and Colyvas, 2011). While, in
case of SME it is one shop and thus possess all the functions that are being carried out in
relation to attain success. Also in Sealable start up entrepreneurship the size and structure
do not matter as in the initial stage and thus ideas are different from each other.
 Aims and objectives- It is another main difference within entrepreneurial ventures so that
aims and objectives could be attained in terms of attaining success. In regard to carry out
social entrepreneurship, business focuses upon serving the society for its welfare and not
for earning high profits. Entrepreneurs obtain the opportunity to make the life better

through introducing innovative idea and thus enhance the revenue of firm. While,
Sealable start up entrepreneurship helps in providing innovative ideas and earn high
profit and market share for long term growth (Storey, 2016). It can be assessed that small
business helps in serving the clients through providing them best quality products and
thus earn profits so that better strategies could be attained.
 Sources of finance- Further, it is another difference that assesses that entrepreneurship
possess the sources of finance. Within UK there are various SME running their
operations and thus they obtain their funds through different sources such as sponsorship
and financial institutions. Also, business helps in expanding the business operations and
therefore they take loan for the same (Welter and Smallbone, 2011). While, SME
requires few funds and they are not so popular in terms of capital and brand image,
therefore, businesses are required to take finance from their own relatives, family, friends
etc in regard to start up the venture. On the other hand, social entrepreneurship aims to
carry out social welfare and do not interested in earning profit. They work from the funds
obtained from donations and thus execute their operations. While, large businesses are
also carrying out main functions and thus obtains funds from different sources of finance
such as banks (Wennekers and et.al., 2010).
TASK 2
P3 Influence of micro and small business on the economy of the United Kingdom
There is greater impact of the small business firm on the economy of UK. The difference
is in relation that influence of large firms can be viewed but the contribution of the small firms
cannot be viewed. After Brexit there is greater decline in the economy of UK that has greater
impact on the small firms (Carraher and Paridon, 2015). This is due to the reason that small
businesses are regarded as the lifeblood. The influence of small firms on the UK has been
enumerated in the manner stated as under:
 Contribution by means of employment: Within the small business firm there is presence
of 250 or lesser employees who are performing function in the business. Thus in
accordance with such half of the employment is being produced by such organizations. In
comparison with large firms, micro businesses are greater that offers employment to the
individual that acts as an aid in enhancing the GDP of the nation. Within the year 2014

there was presence of 5.2 million small and medium size business that were operating
within the country (Fayolle, 2013). By the means of figure it can be viewed that in UK
economy there is greater contribution of small business.
 Economic impact: Growth in the economy can be viewed by means of SME. These are
regarded as small firms that promote innovation which act as an aid in the growth of
economy. They attract the people who are creative and innovative within their areas.
Moreover apart from this the SME assist the large firm in terms that several functions of
the big business are conducted by medium firm that is referred to as outsourcing. Such
business act as an aid for the economy in gaining stability (Hatten, 2015). In UK at the
time of recession SME acted as helping hand that took the economy out of the particular
condition.
P4 SME as well as start up contributes within the growth of the social economy after Brexit
Brexit was considered as one of the shocking decisions that were being taken by UK.
Under this decision was being made by UK to quit EU. Such has huge influence on the firms as
well as nation’s economy. Through Brexit there was greater difficulty for SME to carry out the
activities in other nation. Because of EU the business was free to trade to varied cities. As a
reason of such the profitability of the business has decreased, this influenced the growth of
economy. But through the start up as well as SME the economy has gained the stability. Such is
due to the reason that by introduction of new firm the small business enterprise is offering
employment to the person and has greater contribution to the social economy (Karlan and
Valdivia, 2011). Because of employment the citizen earns their livelihood that assists them in
living in comfortable manner. Moreover this facilitates the cooperatives and charitable business
as with this they gain the finance for conducting activities.
In addition to this through Brexit the another problem that has emerged within the
economy of UK was related with funding as for several projects EU was considered as one that
offers funds for conducting the organizational operations. But in situation of SME such was
easier as start up need few funds in order to conduct the firm. Because of such reason the
economy of UK lay emphasis on opening of small scale business for assisting in the growth of
the economy (Lee-Ross and Lashley, 2010). This has been viewed that half of economy of UK is
SME based. This is rightly stated that small business can effectively adjust with the condition
that is faced by the economy at the time of Brexit. Because of such reason SME made the

economy stable that has assisted in the social development. With the small scale business the
living standard of people has enhanced and this contributes in growth of economy.
TASK 3
P5 Determine the characteristics, traits and skills of two successful entrepreneurs which
differentiate them from other business managers
There are different types of skills and traits possess by entrepreneurs that are different
from other individuals. However, there are wide variety of entrepreneurs available in the world
who are serving the nation by their innovative ideas and thus increases their standard of living.
Likewise, one of the famous entrepreneur is Richard Branson who is the owner of Virgin Group.
He possess innovative ideas and skills which results in expanding its business operations in
worldwide market. Further, another entrepreneur is Mark Zuckerberg who possess high skills
and knowledge which helps him to connect the world with the help of Facebook (Ligthelm,
2010). Following are the different skills and characteristics of entrepreneurs which are different
from managers-
Characteristics and traits
 Plan everything- It is one of the characteristic that helps entrepreneur to plan everything
and attain desire d results. Richard Branson possess the skills that he started from a small
magazine but now he has become the owner of Virgin Group as he plans every step by
step and make investment in order to make the business profitable. While, in case of
manager they do not possess leadership attribute as they are not able to pre plan their
activities while they accomplish the assigned task. Thus, in regard to complete the task
they plan the way and move ahead so that it can be assessed that entrepreneur are
different from manager (Longenecker and et. al., 2013).
 Creating competitive edge- Further, it is another characteristic and thus it helps individual
to possess innovative and unique idea so that they attain competitive edge. But it is not
the same case with manager as they do not overlook beyond the activities assigned to
them. While, they possess the work to manage the assigned task and obtain results.
Further, Mark Zuckerberg obtain effective skills and characteristics such as innovation
that helps him to develop greater connectivity within market (Mariotti and Glackin,
2014).

Skills
 Risk taking- Both the entrepreneurs, Richard Branson and Mark Zuckerberg possess
effective skills such as risk taking that helps them to obtain desired results. However,
entrepreneur is not successful if they are not able to take risk so that they need to identify
the risk and thus try to overcome them so that best results could be attained (25 Common
Characteristics of Successful Entrepreneurs. 2017). Also, in order to become successful person,
entrepreneur possesses effective risk taking approach while as compared to manager they
do not possess such skill. Managers of business always play their role in safer side and do
not take risk in order to accomplish business targets.
P6 Assessing how aspects of the entrepreneurial personality, reflect entrepreneurial motivation
and mindset
Entrepreneur possess the ability to encourage and motivate the individuals through its
skills, actions and characteristics. They also posses motivating power which results in
influencing individual to perform their assigned work. In general the person is being motivating
and develops positive mindset so that they could perform their task effectively and efficiently. In
the case of Richard Branson and Mark Zuckerberg both these personalities possess different
skills and characteristics (Business and entrepreneurship skills and experience. 2017). They
possess patience, dedication and motivation in results in carrying out effective results in terms of
attaining high results. Further, carrying out risk taking approach obtains personality and
determination that helps in encouraging individual to perform their actions so that best results
could be attained.
Further, in the case of Mark Zuckerberg he was neglected various times by the top
management but through his dedication he develops his own empire and thus enhance the
business functions so that Facebook could be used by each and every person for personal
connectivity. All such entrepreneurs possess an motivating factor that results in obtaining
effective skills and personalities that results in setting an mindset so that workers could be
directed to follow their path (The Role of Small Business in Economic Development. 2017).
Further, there are different individuals who possess the capability to achieve heights and conquer
the world and also overcome their fear so that they could become successful in their lives. Thus,
Mark Zuckerberg and Richard Branson could become famous and eminent personalities through
trying again and again to attain results. Further, entrepreneurial skills need to be developed due

to changing mindset of individuals. It has been assessed that an individual need to be
foresightedness or have long term vision so that future plan could be made in terms of
accomplishing future goals. However, entrepreneurial are considered as the ideal for various
people and also they possess effective skills and attributes so that various individual follows their
path. Richard Branson identifies various methods through which his business ideas could help
him to earn high profits while Mark Zuckerberg could become more successful through
overcoming their weaknesses (Abreu and Grinevich, 2013).
TASK 4
P7 Background and experience can hinder or foster entrepreneurship
Background and experience possess huge impact upon entrepreneurship and thus it
hinders or fosters the same therefore, it is essential for them to adopt innovation and skills of
individuals so that different tasks could be accomplished. Also, it possesses different
entrepreneurship ventures and thus helps individuals to possess effective background and
experience which results them to affect their innovation and creativity (Cerrato and Piva, 2012).
They need to obtain effective factors that impacts the success of business and thus possess the
ideas through which it helps them to match with the background and experience of firm and thus
become difficult for entrepreneur to execute the activity which hinders the growth of firm. Also,
at certain time due to lack of knowledge and information of specific field it affects the
entrepreneur as they require time to understand the business objectives. For instance, Richard
Branson was suffering from Dyslexia and thus it was the main hurdle that hinders the
performance within his life. Through such disease, he was not able to properly read or write and
thus created disadvantage for him (Drucker, 2014).
Similarly, the same case has been noticed that with Mark Zuckerberg as he was not
financially sound and was not having enough finance to start up the venture. Thus, all such
hurdles hampers the performance of entrepreneurs and therefore they need to overcome all such
by pitching investors and providing them their business ideas. Thus, through such way it helps
them to overcome their hurdle and foster growth and performance so that desired results could be
carried out (George and Bock, 2011). Entrepreneur alone is not able to grow the business while
they need support of all the individuals who are linked with the firm and thus identify the hurdles
and try to overcome the same so that confidence and motivation could be boosted.

CONCLUSION
From the study it can be concluded that entrepreneur are considered as the most skilled as
well as talented personnel as with this innovation they are offered many things to the world. But
after the analysis of the report it can be stated that small business entrepreneurship has assisted
within the growth of UK economy. By means of SME only after the Brexit the economy was
stable as well as smooth working is being conducted within the nation. As the SME has greater
contribution towards offering employment to the person and even it has assisted in enhancing the
GDP of the nation. Apart from this it has been inferred from the present study that entrepreneur
possesses greater skills as well as talent that differentiate them from the normal human. They are
considered as the one who offers motivation and change the mindset through encouragement and
affecting the people towards attainment of the target objectives. Through the example related
with Richard Branson and Mark Zuckerberg it can be stated that because of several hurdles they
have attained success. The major issue that was being experienced was associated with financial
condition of the person that obstructed the development.

REFERENCES
Books and journals
Abreu, M. and Grinevich, V., 2013. The nature of academic entrepreneurship in the UK:
Widening the focus on entrepreneurial activities. Research Policy. 42(2). pp.408-422.
Carraher, S. M. and Paridon, T. J., 2015. Entrepreneurship journal rankings across the
discipline. Journal of Small Business Strategy. 19(2). pp.89-98.
Cerrato, D. and Piva, M., 2012. The internationalization of small and medium-sized enterprises:
the effect of family management, human capital and foreign ownership. Journal of
Management & Governance. 16(4). pp.617-644.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fayolle, A., 2013. Personal views on the future of entrepreneurship education. Entrepreneurship
& Regional Development. 25(7-8). pp.692-701.
George, G. and Bock, A.J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Grenier, P., 2011. 10. Social entrepreneurship in the UK: from rhetoric to reality?. An
introduction to social entrepreneurship: Voices, preconditions, contexts. P.174.
Haeussler, C. and Colyvas, J.A., 2011. Breaking the ivory tower: Academic entrepreneurship in
the life sciences in UK and Germany. Research Policy. 40(1). pp.41-54.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Karlan, D and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on
microfinance clients and institutions. Review of Economics and statistics.93(2). pp.510-
527.
Lee-Ross, D. and Lashley, C., 2010. Entrepreneurship and small business management in the
hospitality industry. Routledge.
Ligthelm, A. A., 2010. Entrepreneurship and small business sustainability. Southern African
Business Review.14(3).
Longenecker, J. and et. al., 2013. Small business management. Nelson Education.
Mariotti, S. and Glackin, C., 2014. Entrepreneurship and small business management. Pearson
Higher Ed.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Welter, F. and Smallbone, D., 2011. Institutional perspectives on entrepreneurial behavior in
challenging environments. Journal of Small Business Management. 49(1). pp.107-125.
Wennekers and et.al., 2010. The relationship between entrepreneurship and economic
development: is it U-shaped?. Foundations and Trends® in Entrepreneurship. 6(3).
pp.167-237.

Online
25 Common Characteristics of Successful Entrepreneurs. 2017. Available through:
<https://www.entrepreneur.com/article/200730>. [Accessed on 12th April 2017].
Business and entrepreneurship skills and experience. 2017. Available through: <
https://www.innovationpolicyplatform.org/content/business-and-entrepreneurship-skills-
and-experience>. [Accessed on 12th April 2017].
The Role of Small Business in Economic Development. 2017. [Online]. Available Through:
<http://isbdc.org/small-business-in-economic-development/>. [Accessed on 12th April
2017].