Entrepreneurship and Small Businesses Management

This document provides an overview of entrepreneurship and small business management. It discusses different forms of entrepreneurial ventures, their relationship to the typology of entrepreneurship, and the similarities and differences between them. It also explores the importance of small businesses for the growth of the social economy.

Unit 9 Entrepreneurship
and Small Businesses
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Different forms of entrepreneurial ventures and their relationship to the typology of
entrepreneurship -........................................................................................................................3
P2 The similarities and differences between entrepreneurial ventures ......................................5
LO2..................................................................................................................................................5
P3 Interpreting and assessing relevant data and statistics for illustrating how micro and small
business effects the economy......................................................................................................5
P4: Importance of small businesses and business starts-ups for the growth of social economy-
.....................................................................................................................................................6
P5 Characteristics traits and skills of successful entrepreneur....................................................7
P6 Entrepreneurial personality affects the entrepreneurial motivation and mind-set.................9
P7 Background and experience of person affect entrepreneurship.............................................9
Conclusion ....................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship and small business management are the common thing for the business.
Entrepreneurship allow the innovative and creative idea to be implemented into the profitable
product and services. Small business management needed owner of the business for using the
mix of knowledge, education and expertise in running their company. It is very useful in the
success of these organization.
In the above study it is included the various forms of entrepreneurial ventures and accessing their
relation with typology of entrepreneurship. The similarities and difference among the different
entrepreneurial ventures. The study carried forward with the interpretation of relevant data and
statistics for illustrating that how small and micro businesses directly affects the economy. The
report ends with the importance of small businesses and new start-ups for the growth of social
economy.
LO1
P1 Different forms of entrepreneurial ventures and their relationship to the typology of
entrepreneurship -
Entrepreneurship refers to the process of the developing, organizing and managing the ventures
of business along with the risk to make the profits of the company. It refers to the designing and
running of business so that the success and growth of business achieved.
Types of Entrepreneurship
Survival ventures: These are the venture with a basic goal is to survive in the market in order to
meet financial obligations of the company. Most of the start-up ventures come under the zone of
survival entrepreneurship as these firms have a long term goal to stay in the business.
Lifestyle ventures: These are the ventures which are setup and run by their founders with an aim
to sustain a certain level of income or to provide a foundation in order to enjoy a lifestyle.
Growth firms: These are the firms which has a capacity to grow faster than its competitors.
These firms generally focus on increase in revenues annually.
Small business Entrepreneurship-
In today’s market lots of businesses are operating as a small business. In UK 80% of the
companies are working as a small enterprise with the strong base of people employed are 50%
who are workers from private sectors. They do not focus to achieve profits, but they try to earn

profits for the fulfilments of needs and wants of their families and support them (Wegner and
Koetz, 2016). This kind of business usually fails to achieve the attention of venture capital. To
run these kinds of business loan is taken from friends, family or personal loan from banks.
Electricians, carpenters, consultants, plumbers, hairdressers etc. comes into these type of
businesses. Managerial firms in its traditional form is the strategy of starting new company, most
commonly new businesses
Scalable Start up Entrepreneurship
When an entrepreneur has aims and have full confidence that can change the vision then they
could run the business which is called scalable start up entrepreneurship. With the help of
venture capitalists, they collect their funds, and they recruit the best employees they can work
with. Finding this nature of business model is their ultimate goal. Then the next step is to allocate
the funds which was taken from venture capitalist. Due to the factor of risk and return of
outcomes these types of businesses are not much in the market (Dunne et.al., 2016). For instance,
Face book, Whatsapp, Instagram or any other online platforms which are successful comes under
this type of business. This type of venture is also related to its same typology that is scalable
typology they look for a repeatable business. It takes away the share of huge companies by
entering into a large market.
Large Company Entrepreneurship
Companies such as Google, Microsoft, Samsung etc. comes into this nature and type of business.
They focus on sustaining the innovation by launching new products and services into the market
with their core products (Doern, 2016). Companies do this by various ways they either buy a
innovative company or partner up with someone. To cope up with the needs and demand of
market companies come up with new products. These type of firms are aggressive growth firms
as they focus on what is the next goal and what after that. They use every resources to attain the
goal.
Social Entrepreneurship
When an entrepreneur decides to take an action for helping someone or by making products and
services specially for them. They only think of making this world a better place and not to focus
on earning wealth (Staniewski, 2016). They can be hybrid or non-profit. Typology of serial
entrepreneurship is related with these type of entrepreneurship as they have a strong discipline,

stable and strong traits of leadership and innovation and creativity and ability to set goals which
are concrete.
P2 The similarities and differences between entrepreneurial ventures
Similarities: Business structure of enterprises which falls under the private and public are
treated as separate unit from the leaders. Size The aim of the both micro and small is to sustain in
the marketplace for long term (DeTienne and Wennberg, 2016). On ownership, their main aim is
to generate high profit margin with the low investment.
Differences: The major difference is that the private limited company cannot sell their shares
whereas the public limited company can sell their shares. Meanwhile, large businesses are more
concern about their expansion and gaining huge profit margins however the small enterprises are
not much concern about that (McKeown, 2017). However, public company work for the
betterment of society whereas the private company works with their won objectives and aims.
The scope, development and growth of entrepreneurial ventures in United Kingdom-
Entrepreneurial venture are equally essential for each and every stage of company. The
scope and development sector is enhanced as recession is declining in UK nowadays. Individuals
are now investing in the new business apart from their young and own generation which are
more focused for conducting their own business in spite of serving any of the job. Thus, the
entrepreneurial scope is increasing. On other hand not a single company can run smoothly
without these three format of entrepreneurial ventures. Individual are moire innovative and so
trying to involve many ventures in company. Thus, they can have huge growth and development
in their company further. It can be stated that scope and development of venture can be totally
opened for medium and small business because around 99.30% of total businesses can be
conducted by medium and small business. Thus, it is profitable for these small business that they
will adopt ventures for the future competitive fields.
LO2
P3 Interpreting and assessing relevant data and statistics for illustrating how micro and
small business effects the economy
It mostly affects the small businesses whereas the businesses which imports and exports the good
and services it is difficult for them and has a drop in the value of money. The economy of the

UK is underperforming as compared to the other European competitors and the state recognize
how the economy is growing.
To measure turnover of the organizations can be monitor that how it is helping the economy of
UK. It is one of the most significant measurement for estimating the contribution in the
economy. It was recorded in 2018 that the contribution made by small-scale and medium
enterprises was around 2 trillion Euros and it was 52 percent of the general turnover of private
sector (Anumudu, Joseph and Chinasa, 2017). They additionally help in making employments
despite the fact that they are not essentially leaders. These kind of enterprise has utilized around
16.3 million individuals in UK which is 60 percent of all the business that was made by private
sector. It shows that the matter of small-scale and medium enterprises is developing and the
owner of the organizations are certain as work by them was high and 50 percent of them are
stating that they will begin growing their activities as their results will be sure. Enterprises
records for the majority of the organizations in each division. The most of them are in personal
care products and services, for example, consulting, financial services or beauty and wellness
(Brush and Greene, 2015). These type of organizations of UK have a relationship which is
commonly valuable for the general economy of the country. Contributions made by them are
important to the health related variables of economy and the condition of the economy of UK
influences the development of organizations which are small.
P4: Importance of small businesses and business starts-ups for the growth of social
economy-
Organizations who work from a more small-scale gives opportunities and facilities to young and
new entrepreneurs and provides facilities for communities and their neighbours (Landstrom and
et.al., 2016.). Despite the fact that on the opposite side it goes for lot of risk to run a small-scale
venture and comprehensive of that they offer opportunities for young business entrepreneurs
which put them at high risk.
Innovation and improvement
Small ventures lead their activities in neighbourhoods nearby economies and furthermore help to
clear the ways for money related relationship and trying hard for that. It is a simple methodology
that when somebody spends cash at a store which is exclusive then that cash spent by anybody
goes to a labourer to pay him who on the other hand will circulate the cash by spending at
another business. More the small businesses help each other more greatly will be their ability to

make their very own local area of business (Kuratko and Morris, 2018). This help is for the most
part required in hard and crucial time. When a business in neighbourhood battling to adapt up
and satisfy with the needs of others then the individuals from network will help the business
which is attempting to recover financially through the proportions of informal exchange or
taking out campaign for sinking and with regards to large organization nobody has never
observed a help like this from them for different firms.
Autonomy and Independence
Local and small-scale ventures have the ability to highlight the claim to honour of
neighbourhood as large organizations centre just around the new patterns and consider fulfilling
their objectives (Dana, 2015). Private ventures are working in a habitual and long-standing
manner to gain a living so that when contrasted with huge organizations who pursue the patterns
for winning an ever increasing number of dollar. Be it any sort of free business, for example, an
eatery or a drug store. They have to pursue similar services and protocol whether they are
situated in an alternate area or an alternate city.
Creating Employment -
It was seen that the vast majority of the occupations in private sector is made by small ventures.
Indeed, even at the hour of downturn these kind of undertakings pay special mind to young and
new individuals and not just they are worried about giving new openings yet they are likewise
worried about giving them employments that makes them feel fulfilled. They don't put any sort
of importance on the competitors. As employees will have their very own pride when they work
as indicated by their tendency and they will contribute more for the organization (Mugler, 2017).
How small businesses can impact on various levels of economy that is local, regional and
national level-
In United Kingdom small businesses had diversely impacted country's economy at
various levels. In regional level small business can also compete with similar type of businesses
by rendering quality good and service so that they can meet needs and demand of consumer
effectively. At the national level companies can further expand at various areas of the country
and thus there revenues can be enhanced so that they can render higher tax for country's
development. Whereas at the international level many of the small company's export their good
and service and set their branches at several countries. It is helpful for earning foreign currency
which can further contribute to country's growth and development.

Analysation of characteristics traits, skills and motivational drivers of successful
entrepreneurship-
The characteristics traits, skills and motivational drivers are very important for successful
entrepreneurs for setting their business and increase its growth. For setting up the business
various process are considered by them and those are to successfully completed by them for
further business proceed. The individual characteristics required by entrepreneurs are -
 They had the ability for generating new ideas and implementing theses into the unique
business ideas.
 They had the amazing will power and had ability to take risk in their business. As that for
becoming a successful entrepreneur they need to take risk in their business.
 They had clear goals and vision for their innovative business idea.
 They always motivate their team members and employees for keeping the good work and
working for achieving the goal and objective of company.
The individual skills which are needed as follows-
 The good communication skill is to be needed by them so that they can easily iteract with
the individual, team, suppliers, employees, clients and distributors etc.,
 A good entrepreneur will always have leadership skills so that they can develop path for
their team members so that their company's goal and objective can be achieved.
 Time management skills is very essential for completing and proceeding task on time or
before time and thus organizational goal and objective can be achieved.
P5 Characteristics traits and skills of successful entrepreneur.
Characteristics of Peter Jones
Self-motivation- Peter Jones is self-motivated. Being an entrepreneur is mist to be self-
motivated. As when the owner himself is not self-motivated he cannot motivate others.
Understand what to offer- Peter Jones is as successful businesses man. He knows what he is
offering to its customers. Whether it’s a product or service Peter Jones knows very well where to
fit in (Naranjo-Valencia and et.al., 2018).
Take risks- Peter Jones knows that sometimes it’s important to take risk. Playing it safe is never
leads to success as a business owner. Peter Jones is ready to take risk and face challenges in
business.
Skills of Peter Jones

Sales skills- Peter Jones being a successful entrepreneur have very good sales skills. He has
knowledge of market and knows very well where to sell their products. Peter Jones has a good
marketing channel to market its products, thus increases sales.
Communication skills- Peter Jones has good communication skills ie, both oral and verbal.
Being an entrepreneur it is very necessary to have good communication skills.
Project management skills- Peter Jones is always on the list top entrepreneur. He has project
good management skills. Entrepreneur has knowledge to select which on project will be worthy
to work. Peter Jones manages many project simultaneously (Belz and Binder, 2017).
Characteristics of Simon Cowell
Knows how to network- Knowing how to network is an important part of entrepreneurship.
Simon Cowell knows very well that how to connect with others and recognise partnership
opportunities which may help in business survival (Wiklund and et.al., 2019).
Flexibility- Simon Cowell is a flexible entrepreneur. As when the conditions changes according
to that owner changes himself. Simon Cowell has a talent of being flexible as it is an essential
part of problem solving.
Passion- Simon Cowell is as passionate entrepreneur. To be successful in business it is must for
owner to be passionate about the work. Simon Cowell is focused about its products and services.
Skills of Simon Cowell
Ability to be self-starter- Being an entrepreneur is is necessary to be self-starter. Simon Cowell is
creative starter, Simon Cowell has ability to calculate risk, brainstorm new ideas and execute
with precision (Davidsson, 2016).
Leadership skills- Simon Cowell has been a good leader. Entrepreneur has great leadership
skills. Simon Cowell has ability to take charge, assemble, mobilize and motivate teams.
Ambition- Simon Cowell is ambitious in nature. For becoming a successful entrepreneur is must
to be highly ambitious. Simon Cowell is hard working and committed to the task which makes
the business successful (Hardy and Maguire, 2017).
Maria Montessori
She is the social entrepreneur who was educator.
Skill
She is having great communication skill through which she makes students aware with the
philosophies of education. She has great technical knowledge as well.

Characteristics
She is very positive person that supports firm in developing relations with students. Her way to
educating people was great that has made her unique from others.
P6 Entrepreneurial personality affects the entrepreneurial motivation and mind-set.
OCEAN model describes different personality of individual:
Openness
Open mind-set affects the thinking of Peter Jones, Maria Montessori and Simon Cowell. As they
are open minded people the always ready to seek knowledge and always ready to learn new
things. As entrepreneurs have open mind-set they always keep on learning new things. Their
mind is working in such way that they keep on thinking about business only. Thus it keeps them
motivated.
Consciousness
Consciousness impacts the thinking of Peter Jones, Maria Montessori and Simon Cowell
mindsets. As they have knowledge about everything and do all work with consciousness. They
know the strength and weakness of business, so businessman always feel motivated (Parker,
2018).
Extraversion
Peter Jones and Simon Cowell has tendency to seek the company of others and talk. The
businessman is always ready to talk with others. As they keep interacting with other people their
mind-set is impacted in good way and keeps them motivated.
Agreeableness
Peter Jones, Maria Montessori and Simon Cowell are cooperative, trustworthy and helpful in
nature. Agreeableness is obvious and advantage for building teams and maintaining harmony on
the floor. All workers agree on their decision which impacts their mind set making decision and
increases the motivation level (Belz and Binder, 2017).
Neuroticism
It is the tendency to experience negative emotions such as anger, anxiety and depression. Peter
Jones, Maria Montessori and Simon Cowell can very well deal with these psychological stress.
So when they overcome these psychological stress they feel motivated and their mind also work
in positive direction.

P7 Background and experience of person affect entrepreneurship
Maria Montessori
Her father was working under ministry of finance and her mother was well educated person.
Hence family background of Maria has helped her to learn many things about education and this
has raised her interest towards education field. By this way she has worked hard to become a
successful educator, she got inspiration from her mother. This experience of her has made her
aware with the proper way of teaching to students. Her mother has encouraged her and her father
has given her lots of love. This type of supporting environment at family motivated her and she
has worked hard to fulfil her dream. That is why she has become the successful entrepreneur.
She has conducted research in psychiatric clinic, from where she got to know how such people
feels and how society treat them. She learnt about organised system that may help disable people
to work better. This experience and background has helped her to become a successful
entrepreneur.
Peter Jones
He is successful entrepreneur who has become the well-known television personality. He was
having interest in mobile phones. He was belonging from very educated family where his parents
have encouraged him to fulfil his dreams. Initially he has setup his business of personal
computers but initially he has faced loss of 200000. This failure has made him able to understand
the wrong decisions that he made in his career. In the year 2005 he has worked for social
welfare to support young women. He sold ideas of television show that has helped him to get
success. He learnt many things and all his learning has been converted into reality which has
supported him to gain success.
Simon Cowell
His mother was working as ballet dancer and his father was property developer. His father as
worked as executive in music industry. His father support and approach has helped him to make
his career in this sector. He was young in his family hence he was very responsible and
dedicated. This has supported him to manage business activities properly. He has completed his
education from renowned university which has supported Simon to know the actual path of his
career and he moved in the same direction. He has worked as A&R consultant. From where he
learnt many things about music. He has judged many talents show which has made him popular.

He was very consistent and his father support helped him to become a great entrepreneur and
become popular in this sector.
Critically evaluating ways background and experience influence entrepreneurship by both
negatively and positively by contrasting and comparing examples-
The background and experience of individual can impact entrepreneurship in both ways
positively and negatively. Maria Montessori, Peter Jones and Simon Cowell have motivation for
setting up their business and meet with various problem for growing. They had got efficient
support from their team member so that they can be motivated and effectively operates the
company. Many organizations couldn't survive for long term due to the lack of team support and
motivation for keep growing and developing ahead. The past negative experience of failure can
affect entrepreneurship very negatively. If an individual have the strong financial support and
background they risk can be beard by them for setting business and run the business effectively.
Thus, they all are motivated and supported by their family, friends and colleagues so that they
can set up a successful business and could gain huge competitive advantage in the marketplace.
Conclusion
From the above study it is concluded that the Entrepreneurship and small business management
has grown very rapidly from last some years. These entrepreneurs are coming in the market with
the innovative ideas and strategies which is helpful for them in gaining the huge profit margin
within the competitive rivals. The Entrepreneur can sustain in the market for long term with the
effective strategies and business management by which company can raise their profit margins
and gains huge success in their businesses.

REFERENCES
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