Entrepreneurship Theory and Practice

This assignment presents a literature review exploring various aspects of entrepreneurship theory and practice. It delves into topics such as institutional theory and its influence on entrepreneurship, entrepreneurial motivations, the growing field of social entrepreneurship, and the role of knowledge management in small and medium-sized enterprises (SMEs). The review draws upon influential works and research to provide a comprehensive overview of current trends and debates within the discipline.

ENTRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different type of entrepreneur venture and relation with typology of entrepreneurship. .3
P2 Difference and similarities between different ventures.....................................................5
TASK 2............................................................................................................................................7
P3 Impact of micro and small business on the economy........................................................7
P4 Contribution of small businesses and business start ups to the growth of social economy
after 'Brexit':..........................................................................................................................8
TASK 3..........................................................................................................................................10
P5 Traits, characteristics and skills of Bill Gates and Steve jobs which differentiate them from
other business manger..........................................................................................................10
P6 Reflection of entrepreneurial motivation and mindset....................................................11
TASK 4..........................................................................................................................................13
P7 Background and experience that foster or hinder entrepreneurship................................13
CONCLUSION ...........................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is an important task for the growth and development of the economy.
Entrepreneurship is the capacity to develop and organise business to earn profit in future for
example starting of new business. Land, labour and resources are required to start up a business
and to grow and earn more profit in future. Factors of risk is also essential part of the
entrepreneurship because business can not be started without taking the risk. Risk is essential
part of the business (Alsos, Carter, and Ljunggren, 2011). An organisation can earn more profit
by taking risk because business is not possible without risk.
Small businesses are small in size as comparison to large business scale and does have
small number of employees and worker and also have low volume of sale. Small businesses are
generally operated by privately as sole proprietorship, partnership etc. Small business
management requires to compile education, knowledge and experience to run their business to
the growth.
TASK 1
P1 Different type of entrepreneur venture and relation with typology of entrepreneurship
Entrepreneur is the one who has innovative idea to develop a business plan and make it
possible to reality. Entrepreneur is an individual who invest his money to the company and take
risk that is associated with the business. Entrepreneur runs a small business and take all the risk
and reward of the business and has the leadership on the business. Entrepreneurial venture covers
many aspect to run the business as idea generation, feasibility analysis, starting of new company,
raising of capital, sales and marketing strategy for the product that they develop, attracting a
capable team, creation of new culture, growth for the business (Awogbenle, and Iwuamadi,
2010).
Entrepreneur venture-
1. Survival venture:
 Survival ventures provide basic help to the entrepreneur and his family.
 Such kind of the businesses are generally not registered and have few assets.
 It operates on barter basis and do not have premises to run their business. It operates in
high competitive market.

2. Lifestyle ventures:
 Lifestyle ventures provide income to the owner.
 Reinvestment are made in business to create more competitive environment in the
market.
 Such ventures have premises to operate their business but does not have future growth to
the business (Barringer, 2012).
 These ventures have employees but they are constant. It is incapable to achieve
economies in operation of business.
3. Managed growth ventures:
 Managed growth ventures achieve growth in future as to reflect in occasional product
launch, entry into new market.
 It develops its local and regional brand to achieve the growth to the business over the
time.
4. Aggressive growth ventures:
 These venture are based on the technology with innovational technological development
and innovation capabilities that target to the growth of the business.
 These ventures are generally funded through equity capital. They have focus on national
and international market (Bosma and Levie, 2010).
Relation of ventures to the different typology as-
1. Serial entrepreneur-
Serial entrepreneur is the one who start his business with new idea and after the staring up of the
business, assign roles and responsibility to other and then take move toward the new venture.
Such entrepreneur innovate new ideas to the business. It is good thing to consider new ideas to
the business but it has negative impact on the business when such idea do not succeed. Different
venture opted the new idea but it is required to move with idea so that it can give growth to the
business. One of the leading serial entrepreneur is Oprah Winfrey.
2. Social entrepreneur-
Social entrepreneur is the one who has innovative solution to the problem that are faced by the
society by changing the system. It is important for the venture to consider society while doing
their business because business is for the society and by the society, social entrepreneurs are

visionaries as well as realists. They present user friendly and ethical idea. One of the leading
social entrepreneur is Florence Nightingale (UK).
3. Female entrepreneur-
Female entrepreneur is required to be in the business. Aggressive growth venture is related to the
female entrepreneur because it makes focus on the technological development so that their
business can achieve targeted growth. Female entrepreneur has focused on participation of
women in equity and employment of business enterprises (Bruton, Ahlstrom and Li, 2010).
Women Enterpriser venture Adafruit Industries UK founded by Limor Fried in 2005.
P2 Difference and similarities between different ventures
Difference between women and men entrepreneurial venture are as follows-
Women Entrepreneurial venture Men entrepreneurial venture
Women have nature to focus on different
choice and options that is available to them.
Men generally do not focus on different option,
they have focus only on their task.
Women have less focus on their objective and
goals of their business.
Men entrepreneur make focus on their goal and
objective of their organisation.
Women generally not opt risk factor in
different opportunities that is available to them.
Men have nature to opt risk factors that are
associated with their business.
Women have social nature and they can easily
connected with the society.
Men are less oriented toward social factors.
Similarities between Women Entrepreneurial venture and Men Entrepreneurial venture are as
follows-
1. Women Entrepreneurial venture and Men Entrepreneurial venture both are goal and
objective oriented (Carraher and Paridon, 2015).
2. Both have focus to increase profitability as well as productivity of their organisation.
3. Both motivate their organisation toward future growth and motivates people associated
with their organisation to earn more and more so that organisation can achieve better
growth in future.

4. Both focus on the financial security of their business.
5. Both make focus on social characters that may have impact on their business (Carsrud
and Brännback, 2011).
Difference between Lifestyle Entrepreneurial Venture and Serial Entrepreneurial Venture are as
follows-
Lifestyle Entrepreneurial Venture Serial Entrepreneurial Venture
Lifestyle entrepreneur focuses on the objective
of their business and moves forward with their
idea.
Serial entrepreneur is the one who start his
business with innovative idea and after the
staring up of the business move toward
different venture and idea.
Reinvestment are made in business to create
more competitive environment in the market.
Investment is required to move forward with
their new idea and it is also required to move
with new venture.
It is not capable to achieve economies
operation.
It is capable to achieve economies operation.
Similarities between Lifestyle Entrepreneurial Venture and Serial Entrepreneurial Venture are as
follows-
1. Innovation:
Lifestyle entrepreneur and the serial entrepreneur both have focus on the development of new
idea to create more competitive environment in the market (Chittithaworn and et. al., 2011).
2. Time management:
Time management is important task for the business. When organisation have effective time
management policies than it may succeed in the business. Lifestyle Venture and Serial venture
both focus on the time management.
3. Motivation:
Both the business venture focuses on the motivational factors so that they can motivate their
employees to work with more efficiency and skills.
4. Ideas-

Both the business ventures have focus on the new ideas that may give strength to their business
and it is also required to beat the competition in the market.
TASK 2
P3 Impact of micro and small business on the economy
Micro and Small businesses have large impact over the economy (Dacin, Dacin and
Matear, 2010). It provides boost power to the economy of any nation and help in the
development of overall nation. Micro and Small businesses provide many services to the society
and to the community and have large impact over then economy. Small business are important to
the overall economy. Small businesses give strength to the community and shape the community,
economy of any country. Small and micro businesses provide better and more growth
opportunity as well as creates more employment opportunities for the individual. It minimizes
the unemployment chart which have large impact over the economy. When an individual starts
new business then such business creates more employment opportunities for the individual of the
nation so it overall reduces the unemployment as well as poverty graph of the nation.
Small and micro enterprises creates better job opportunities for the individuals of the
nation, when better job opportunities are available in the nation then foreigners also get attracted
toward the country to come and work in the country. Small businesses required small premises to
run their business as comparison to large organisations so it requires low overhead cost and it
provides low rate product to the market so crises of inflation do not arise in the market
(Defourny and Nyssens, 2010).
Following are the limits of investment in following sector:
 Manufacture sector-
Micro enterprises: investment in plant and machinery can not exceed twenty five lakh rupees.
Small enterprises: investment in plant and machinery can be twenty five rupees to five crore
rupees.
Medium enterprises: investment in plant and machinery can be five crore to ten crore rupees.
 Service sector-
Micro enterprises: investment in equipment can not exceed ten lakh rupees.
Small enterprises: investment in equipment can be more than ten lakh but up to two crore.

Medium enterprises: investment in equipment can be more than two crore but up to five crore.
The Small and micro enterprises play very important role in the economic growth and
development of the country. Small and micro enterprises affect the labour turnover contribute to
the employee income to large extent. The Small and micro enterprises are the backbone of the
economic growth of the nation. Small businesses are the major source for employment and
generates revenue to the government which help in for the development of country. Economical
growth through innovative ideas of entrepreneurs can also be achieved. When new opportunities
are available to the country then people who are highly qualified and skilled will not move
outside the country for the job so it also help in to retain intellectual and skilled employees in the
country (Dennis Jr, 2011).
P4 Contribution of small businesses and business start ups to the growth of social economy after
'Brexit':
Brexit is a term which means 'British exit' relating to the UK decision to leave the
European Union(EU). There was great fall in British currency. Brexit affected the business of the
nation in very adverse way. In January 2017 the British prime minister confirmed that UK
government would not continue their membership in the single market and incorporate European
union (EU) laws into the UK domestic laws (Drucker, 2014).
Following are the contribution of small businesses and new start ups to the growth of the social
economy:
 Employment:
After Brexit, small business and start ups took place and it provided employment opportunities in
the nation. Small businesses and start ups provided stability to the nation and help in to eliminate
the financial crises that were faced by the individual after Brexit.
 Economic and social development:
Small businesses and new start ups have a great impact on the social and economical
development. It creates many opportunities to the nation which overall resulted in the growth of
the nation. Opportunities helps in the development of the social standard of the people of the
nation.
 Property and assets prices:

After moving toward UK, country has big issue that was poverty. There was huge fall in the
value of the currency, so it affected the real state business. Many people have lost their jobs and
employment so it created the poverty in the nation. Small business and new start ups create job
opportunities for the individual, which overall contribute to economic as well as social growth
(Ebert and et. al., 2014).
 Infrastructure Sector:
Small businesses and start ups contributed to the infrastructure sector. It provides facilities and
resources for the development of infrastructure sector. Many good opportunities to this sector for
future growth and better performance are available so that it provides boost power to the
infrastructure sector.
 Improve economic growth of UK:
after the Brexit, new start ups took place which help in to the growth of the economy of the UK.
UK provided many opportunities to the new start ups so that they can improve their business
standard and provide employment to the individual who have lost their job due to Brexit
(Fayolle, 2013).
 Generation of more revenue:
New start ups create revenue to the government and government provide some advantages as tax
deduction advantage to new start ups so that economic and social development can be possible in
the nation. Few businesses traded globally so it increases the foreign revenue of the nation.
Difference between start ups and small businesses-
 Start up:
Start up is a young company that is just started their work. Start ups are usually small in size.
Start ups focus to provide product or service to the public that is generally not available or to
provide any services that is not offered in the market. Government provide many advantage to
the start ups so that new start up took place.
 Small businesses:
Small businesses are privately owned businesses as partnership, sole proprietorship. Small
business have less number of employees and have less revenue. Small businesses have low
volume of sale. Small business management requires to compile education, knowledge and
experience to run their business to the growth.

TASK 3
P5 Traits, characteristics and skills of Bill Gates and Steve jobs which differentiate them from
other business manger
Bill Gates and Steve jobs are the two great business man to whom other business man follows.
They have skills and traits that differ them from other business man. They have great intellectual
skills as well as good visionary power which make them more effective as compare to other
business man (Carland, Carland and Stewart, 2015).
Following are the skills and traits of Bill Gates and Steve jobs that differentiate them from other
business manager-
1. Voracious reader:
Bill gates and Steve jobs have a good habit of reading which help them to explore new area of
knowledge and innovative ideas of the business. Such great personality does not believe in
reading e-books, but they believe in reading hard books to enhance their understanding of the
world.
2. Quality of how to prioritize:
Prioritization and time management helps in to achieve new opportunities. They manage their
work and time precisely to fulfil the important commitments on time. It is the great quality of
such a great leader that they know how and when to say NO like if he does not believe that he
should not be in the meeting then he will not attend it.
3. Focus and determination-
Both the great man have the quality of determination, they believe that diversion of mind creates
hindrance to the mind and impose negative impact on their business so they have concentrated
and focused towards their goals which made them an achiever (Drucker, 2014).
4. Not afraid to take risks-
Business is the game of risk. Person who accept risk can succeed in market, otherwise not. Bill
Gates and Steve Jobs are always ready to accept the risk that is associated with their business.
Many business man get afraid of the risk factor that are associated with their business but such
great personality do not afraid of risk (Kirzner, 2015).
5. Result oriented-

Great business man do not believe in to achieve the small task, they focus on the large goal and
make their policies and plan their work according to the final result. They are result oriented and
for achieving the targeted result they consider all the risk factor that are associated with their
business.
6. Confidence-
Confidence is the key character of the business man. It must be in every business man because it
helps in to achieve the targeted result. Confidence is necessary because it motivates one to
achieve their goal. If business man not have self motivation and confidence then there will be
lack in the performance (Shepherd, 2015).
P6 Reflection of entrepreneurial motivation and mindset
The great personality as Bill Gates and Steve jobs have many traits and qualities that differ them
from other business manager. They do not afraid to accept the risk factor that is associated in the
business because they believe that business is not possible without the risk factor.
Following are the factors covered in exposure of personality to have traits of good entrepreneur
as follows:
1. Openness to experience:
Openness reflects curiosity and level of creativity that are different from person to person. It is
an appreciation for adventure, unusual idea, curiosity. Sometime, high openness have negative
impact on the business and it shows lack of focus. Openness shows ability of a person to learn
more which help in to achieve the target. Innovation is an essential part of openness, it helps in to
learn new things that are flowing in the market. Breadth and depth of an individual is also part of
openness.
2. Extraversion:
Extraversion is an energy of an individual to work,to have positive attitude toward the work,
assertiveness, sociability, talkativeness are also extraversion.
 High extraversion shows attention seeking and domineering (Fayolle, 2013).
 Low extraversion shows a reflective personality which can be self absorbed.

3. Conscientiousness:
Conscientiousness means self discipline, goal oriented, prefer plan behaviour but does not mean
spontaneous behaviour.
 High Conscientiousness derives problem as stubbornness and obsession.
 Low Conscientiousness shows flexibility and spontaneity but also shows reliability.
4. Neuroticism:
It measures unpleasant behaviour as anger, depression, irritation, feeling of blue. It measures
control over himself.
 High neuroticism shows stable and calm personality.
 Low neuroticism shows reactive personality.
5. Agreeableness:
Agreeableness measures cooperativeness, helpful nature and trust on others. It does not measure
incredulous and inimical to the others (George and Bock, 2011).
 High agreeableness as submissive.
 Low agreeableness as competitiveness.
Great personality Bill gates is always openness to experience and he always adopts new
things so that they can implement it effectively in their business. He has Conscientiousness,
Agreeableness personality dimension which provide him growth and development in their
business. This great personality always accepts new changes so that they can offer better services
to the society as per market environment.
One of the greatest entrepreneur like Steve jobs has many traits which differ him from
other. He is open minded and always tries to provide better product and services top others. He
has quality of cooperativeness, Agreeableness, Extraversion, control over himself,
Conscientiousness. These are the traits that are behind the success of him.

TASK 4
P7 Background and experience that foster or hinder entrepreneurship
Background have an impact over the business and on the performance of the individual in
the business. It is said that person who is from business family background may lead the
business. Many cases available in which if a person is not from business background then also
lead a business in effective way, it is only a skills and knowledge of a person that play important
role in this regard. There are many factors of background as education, family, social network,
experience, gender and nationality and ethnicity that foster and hinder the growth of
organisation. Background of a person affect the business because individual can get support from
their family to work more harder in adverse situation. It helps to solve many problem like if they
face any problem then he may consult the problem with their relative or family member and they
can provide better solution of it (Carland, Carland and Stewart, 2015). There are many
entrepreneurs as Bill Gates and Steve jobs who have business background and it provides
assistance to solve the issues and run their business in more effective way. They faced many
issues while running their business but due to their educational background and skills they have
solved such problems.
Experience lead into the perfect result that one can get only through the experience.
Experience help in to achieve the target as soon as possible and to achieve the target on time.
Experience come with the time when an individual work constantly to achieve the objective.
Great personality like Bill Gates, they are successful just because of they have experience and
they get experience with the time. Experience and background foster the leadership style as well
as entrepreneurship. It helps in to achieve the targeted result. Background and experience give
more growth to the business which result in to achieve the targeted result. Experience helps in to
solve the problem that the business enterprise face because there are few problem that can be
solve only if they adopt proper measurement to solve the problem and that can be happened just
to have the experience. Experienced person can solve the problem as mush easier as other no
experienced person can not (Kirzner, 2015).
CONCLUSION
Entrepreneur provides growth to the business which overall result in to the development
of the nation. Small and new start up business create more growth opportunities to nation as it

develops the new employment opportunities for the individual. Great personality like Bill Gates
and Steve jobs have good leadership quality and have great skills so that they can improve their
business. Small business creates many job opportunities so that they can people can have facility
to achieve the job and targeted result.

REFERENCES
Books and Journals
Alsos, G.A., Carter, S. and Ljunggren, E. eds., 2011. The handbook of research on
entrepreneurship in agriculture and rural development. Edward Elgar Publishing.
Awogbenle, A.C. and Iwuamadi, K.C., 2010. Youth unemployment: Entrepreneurship
development programme as an intervention mechanism. African Journal of Business
Management. 4(6). p.831.
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
Bosma, N.S. and Levie, J., 2010. Global Entrepreneurship Monitor 2009 Executive Report.
Bruton, G.D., Ahlstrom, D. and Li, H.L., 2010. Institutional theory and entrepreneurship: where
are we now and where do we need to move in the future?. Entrepreneurship theory and
practice. 34(3). pp.421-440.
Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 19(2). pp.89-98.
Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to
know?. Journal of Small Business Management. 49(1). pp.9-26.
Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Dacin, P.A., Dacin, M.T. and Matear, M., 2010. Social entrepreneurship: Why we don't need a
new theory and how we move forward from here. The academy of management
perspectives. 24(3). pp.37-57.
Defourny, J. and Nyssens, M., 2010. Conceptions of social enterprise and social entrepreneurship
in Europe and the United States: Convergences and divergences. Journal of social
entrepreneurship. 1(1). pp.32-53.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management.49(1). pp.92-106.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Durst, S. and Runar Edvardsson, I., 2012. Knowledge management in SMEs: a literature review.
Journal of Knowledge Management.16(6). pp.879-903.
Ebert, R.J. and et. al., 2014. Business essentials. Pearson Education Canada.
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.
Herrington, M. and et. al., 2010. Tracking entrepreneurship in South Africa: a GEM perspective.
Graduate School of Business, University of Cape Town.
Online

Business and entrepreneurship skills and experience. 2013. [Online]. Available Through:
<https://www.innovationpolicyplatform.org/content/business-and-entrepreneurship-
skills-and-experience>. [Accessed on 15th April 2017].