Entrepreneurship and Small Business Management

This report focuses on entrepreneurship and small business management, covering topics such as different types of entrepreneurial ventures, their relationship with typology of entrepreneurship, similarities and differences between these ventures, impact of micro and small businesses on the economy, importance of small business and start-ups for social economy, characteristics and skills of entrepreneurs, and more.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Contents
INTRODUCTION.................................................................................................................................3
LO 1......................................................................................................................................................3
P 1 different types of entrepreneurial ventures and explain their relationship with typology of
entrepreneurship................................................................................................................................3
P 2 similarities and differences between these ventures....................................................................4
LO 2......................................................................................................................................................6
P 3 Impact of micro and small businesses that has impact on the economy.......................................6
P 4 Importance of small business and start ups for the growth of social economy............................7
LO 3......................................................................................................................................................8
P 5 Characteristics and skills of entrepreneurs and difference between them and business managers
...........................................................................................................................................................8
P 6 aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset..........9
LO 4....................................................................................................................................................10
P 7 Background and experience of entrepreneurship.......................................................................10
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................12

INTRODUCTION
Entrepreneurship and Small Business Management focus on the study of companies
operating on large scale who initiated their operations with very less resources. Due to the
changes in environment way of operating and evolving is totally changed and if it is not done
in right manner then they will have to choose the ways that helps them survive in a successful
manner. This report contains a brief over topics such as Different entrepreneurial ventures
and typologies that are different. Comparison of Similarities and differences between these
ventures. Impact of micro and small business in the economy. Importance of small business
to social economy. Traits and skills of entrepreneur. Aspects of the entrepreneurial
personality that reflects the mind set and motivation and Experience and background of
entrepreneur.
LO 1
P 1 different types of entrepreneurial ventures and explain their relationship with typology of
entrepreneurship
Small business Entrepreneurship-
Businesses that are managing their operations on the scale of start up are believed to
be one of most viable as they are generating more revenue because of their quality of work
and services provided to their customers. Around 80 per cent of the businesses in UK are
dealing on this level of scale. In terms of employment they provide around 50 per cent in area
of private sector. In order to raise funds this scale of business seeks help from friends,
families or banks (Runyan and Covin, 2019).
Scalable start up entrepreneurship-
This model of business operates on the vision they have set, will of the entrepreneur
and though process put into taking decisions by entrepreneurs. This helps them to make them
explain that with their thought process They can bring change. This model is known as
scalable form of business. This form of business opts and find another options in order to
raise funds such as venture capitalist. With the help of strategies such as these they are able to
find employees with the right amount of skills. Companies such as Facebook, Instagram and
whatsapp are the ones which is a part of this model. They face difficulty in allocating their
funds. Typology of this model is scalable as they want business that is repeated (Radović-
Marković and Tomaš, 2019).

Social Entrepreneurship-
This form of entrepreneurship is done with motive of doing social deeds which is
beneficial to society. Other than working for the environment there is no ulterior motive
behind it. Typology of this model states and involves that entrepreneurs will work in a
discipline manner which is stable and they must have qualities of leadership so that they can
lead their business with innovative mind set.
Large company entrepreneurship-
Companies serving on large scales and who have been successful in establishing their
base of operations in different countries such as Google, Microsoft etc. These companies
have one aim and that is to launch an innovative idea or product and sell it at profit. This is
their main purpose to serve in market. Typology if this aspect states that in order to satisfy the
needs and wants of these products they have to come up with new and strong foundation in
market.
Typologies
There are different typologies and business implements it as per their suitability and
nature.
Lifestyle typology is selected by those businesses that operates and maintain low key
operations on small scale and owner is the one who makes decisions and work on the basis of
it individually. It is the hard work and efforts put down by entrepreneur to ensure and attain
success in market. This is because they know that if thy let their guard down then they won’t
be able to survive the tough competition around market (Loarne-Lemaire, Maalaoui and
Dana, 2017).
Another typology which is available is referred as scalable typology which is
preferred and used by businesses operating on large scale. Other than earning money it aims
on bringing innovation and creative measures in market.
P 2 similarities and differences between these ventures
Attributes Small Scalable Social Large
Objective Due to their
operations
being
Objective and
motive of these
businesses is
Target set by
firms operating
in this sector is
Main objective
of companies
operating on

maintained on
small scale they
get
opportunities
that are small
because of
which they have
a limit on
earning profit.
that they are
able (Maziriri,
Mapuranga and
Madinga, 2018)
to bring change
in market with
the styles they
have
implemented
and measures
they will bring
down.
that they have
to work for the
betterment of
society.
this scale is to
take out
maximum
returns through
which they can
generate more
profit and
reinvest that
money to
capture a bigger
share.
Financial
Source
Method of
raising funds
chosen by these
companies is
pretty simple as
they ask from
their family or
friends because
they have that
much collateral
over them.
These
companies
consider
venture
capitalist as a
viable option in
order to
generate funds
for their cash
flow.
In order to get
funds they ask
for donations
from businesses
who are
operating on
large scale or
NGOs.
This mode of
business raise
money with the
help of bank,
earnings they
have kept aside
or by going to
investors.
Organizational
Structure
These
companies build
and keep their
structure as flat.
Management of
company set
their structure
and they have
two options that
is keeping it tall
and different
but they do not
allow employee
For these
companies there
is no specific or
fixed structure
whatever is
convenient to
them they taken
on to it.
Structure of
these companies
are set to be
functional.

to raise
discussion on
any topic.
Similarities-
As per all the different scales and forms of organization they have one most common
and most important aspect and that is gaining support in terms of financial aspects. This is
needed to maintain flow of operations in smooth manner. Apart from that in every sector
every organization has to deal with high level of competition which creates difficulties for
them to manage their flow of work as per their expectations. This sometimes also cause
distress in their level of profits. All of these forms of business have to deal with threats from
external market and if analysis is not done in proper manner then chances are that it will
affect survival of company in market (Linton and Solomon, 2017).
LO 2
P 3 Impact of micro and small businesses that has impact on the economy.
The impact of micro and small business reflects on the factors such as level of
inflation and disposable income in the hands of people. If the inflation in country is high, then
it is confirm that they will have less income to spare on other expenses. This relation of
disposable income and inflation is concerned for those targeted audience who manages their
funds by dealing or trading in export and import of goods. These businesses are equally
important to large scale organizations because even they contribute to their economy and
GDP on a substantial scale. Contribution made by them in economy is thoroughly analysed
and on the basis of that they were able to understand that contribution made by them was
more than companies maintaining their business on large platforms. Due to their ratio of
success and contribution made by them they have been able to gather the support of
government. They are allocating their funds in the right area and that is the sector of research
and development which they believe will help them to bring something new in market. If they
succeed and live up to their commitments, then they will be able to get that sort of treatment
from government which will be special. Companies of medium and small scale are totally
working on area of technological improvements by putting all of their efforts. If they are
successful many sectors will gain benefit from this which will increase their profits and bring

more contribution to economy. They will be able to gain more access to funds if they increase
the level an provide more employment and with the help of that they can focus on exploring
other viable areas and take a decision to expand their business there (Lechner and Pervaiz,
2017).
P 4 Importance of small business and start ups for the growth of social economy
Creating employment-
In terms of providing and creating more opportunities for job it is the private sector
who is ahead in the area of that. It is done on the basis of knowledge possessed by employees
and the years of experience they have put in. reason behind this strategy and use of concept is
that if they allow the employee to work in their field of interest then company will be able to
get better and productive results (Kerrin, Mamabolo and Kele, 2017).
Local Improvement-
Operations maintained by small scale organizations are mostly in local areas or less
developed regions which relies the way to prosperity on the basis of their dealings. Apart
from that these businesses work in coordination and they provide help to those who are
operating as the same scale. It is because these businesses have to suffer from low flow of
cash but with their help they keep it operational. These help is provided mostly when
economy of country is not in good condition. If the business is not able to meet their
expectations then they have full support of their local regions or communities which will help
them to get their condition improve (Boermans and Willebrands, 2017).
Change in lifestyle-
Companies operating on small scale provide the opportunity to people to work with
them in exchange for money which will help them to make a change in their lifestyle.
Standard of living and change in lifestyle happens when individuals starts to earn and bring
some cash in. By the help of that they are able to make a positive change.
Autonomy and Independence-
These businesses have the authority to look out for the things that are special in that
area. On the other hand large companies work so that they can satisfy needs of people and
through positive word of mouth increase their share in market. Business operating on this

scale work on the approach which is to follow methods that are traditional. Rules and
regulations will remain same for all they don’t even care if it suits to nature of business.
LO 3
P 5 Characteristics and skills of entrepreneurs and difference between them and business
managers
Traits and skills of J.K. Rowling
Traits
Motivation-
Mind set of entrepreneurs are set on one approach and the reason behind that is they
believe that it will help them to stay focused and successful. This is because they are
determined towards their work and due to years of experience they have put in that field and
knowledge took out by them helped them to gain confidence over their work by which they
keep on motivating other people so that by their efforts put down together they can achieve
their goals. They keep their attitude positive as it helps them to break down their task with
better approach. For instance- J.K. Rowling struggled a lot and faced many difficulties but it
was her motivation that helped her to overcome those challenges and be successful (Bvuma
and Marnewick, 2020).
Skills-
Flexibility-
In order to work as per the needs and wants of people they try to stay flexible so that
they can adapt the trend and remain on the same path which is set as per the expectations of
people. Other than this they let their ego down and hear to advise of there members of team
so that they can make the best decision. For instance- J.K. Rowling was not sure how to end
her novel series and it was done by taking advice from people.
Traits and Skills of Richard Branson
Traits
Creativity-

This aspect is believed to be one of the most important traits of entrepreneurs and that
is to be creative and bring new measures or products in market so that they can attain
attention of people. For instance- it is the creativity of Richard Branson that has helped him
to be successful because of the creative and innovative decisions taken up by him (Wynn and
Jones, 2019).
Skills-
Vision-
Entrepreneurs set their mind set and plan things with a aim to serve futuristic needs so
that even with high amount of competition they survive in market. For instance Richard
Branson set his vision which helps him to serve futuristic purpose of market. This is the
reason why his investment portfolio is so unique and diversified.
P 6 aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset
There are five steps in big trait model through which mind set of entrepreneurs can be
analysed and understood.
Openness
This aspect describes and deals with qualities such as insight, foes asking, predicting the
return of decision etc. For instance- J.K. Rowling got the idea for her famous novel Harry
Potter when she missed her train. These are the type of qualities that make Entrepreneurs
different from normal people as they do not fear to prove their imagination into existence. It
all depends on the level of this trait possessed by entrepreneur.
Conscientiousness-
This aspect involves dealing in a way that is professional, with manners and habits
that impress the other audience. This helps them to automatically make their path towards
achieving goal with a focus on constant growth. It was the professionalism and discipline of
Richard Branson that helped him to make decisions that were futuristic and goal oriented and
that is why he could always tackle the competition around his businesses in market. These
people are also strict towards completing task before deadline.
Extraversion-
Another name for this stage is extroversion. Qualities such as philanthropist, making a
donation to charity or working for the benefit of other people are present in some

entrepreneurs. This is why many of them donates a part of their income in this area such as
J.K. Rowling who donated half of her wealth and that made her lose her title of being a
billionaire. Her nature tends to be an extrovert which is why it was seen at many interviews
that she was open about her past and personal life.
Agreeableness-
This trait of model states that people have to agree with other’s point of view. For
instance- J.K. Rowling was not able to find a end that wins the heart of audience she asked
for opinion of many people and on the basis of that she was able to meet her conclusion.
Other than Richard Branson also believes in listening and taking advice from other
entrepreneurs and on the basis of that he makes the decision to throw his investment in
market.
Neuroticism-
This trait helps to assess the condition and emotion of entrepreneur’s mind that
whether they are happy or sad. Qualities of this trait on a high level possessed by
entrepreneurs will affect them eventually as those of them will be less emotionally stable. For
instance J.K. Rowling was low on this trait and that is why she was able to overcome her
negative emotions and control them which did not affected her career (Belitski, Caiazza and
Lehmann, 2019).
LO 4
P 7 Background and experience of entrepreneurship
Richard Branson-
Virgin was started by Richard Branson in the year 1970 and with time he tend to grew
because of his smart and successful investments in different sectors. As per reports he has
invested in over 400 companies. In order to pursue his dream of being an entrepreneur he left
studies and initiated for business when he was around 16 his first line of business was mail
order business.
When he started making change in his career across the path he met many
entrepreneurs who were successful in the field they operate in and he understood the concept

of market and dynamics behind it from them after that he realized that everyone has to form
their own way.
J.K. Rowling-
She gained fame and recognition through the success of her novel series which is
Harry Potter after that she tried producing her own novel movies which became success and
after that she became a philanthropist. Success of Harry Potter helped her to get many awards
which increased her name and position in business. She has opened up about her past many
times which states that it is up to the dedication and thought process of entrepreneurs to
pursue in what they believe so that they can make a breakthrough by achieving that
milestone. Most important thing is she achieved all her goals on her own without anyone’s
support.
As per the background and experience of both entrepreneurs it can be clearly observed that
both of them made it on their without as they had no resources, no support, no inheritance
from family which could have helped them out. It was totally the efforts that they put in their
hard work, dedication towards their goals and knowledge that they put in market which
helped them to go far from their bad phase and live the life being successful in their
respective fields (Adeyeye, Ikupolati and Ndibe, 2018).
CONCLUSION
From the above studies it can be concluded that small and medium scale businesses
have earned their reputation by contributing more than large scale businesses in terms of
providing employment which is helping people to improve their standard of living. It is
important for entrepreneurs to analyse the market first and then make the decision so that
they can increase the ratio of their success. Entrepreneurs need to keep a balance between
their traits and skills so that they can perform by being stable in every area. Apart form that it
is important they work with professionalism and discipline as all of it is linked with their
reputation on the basis of which they develop trust with people.

REFERENCES
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