Entrepreneurship and Small Business Management

Entrepreneurship and Small
Business Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different type of entrepreneurial ventures and explain how they relate to the typology..3
P2 Similarities and differences between entrepreneurial ventures.........................................6
TASK 2............................................................................................................................................9
P3 Relevant data and statistics to illustrate how micro and small businesses impact on the
economy.................................................................................................................................9
P4 Importance of small business and business start-ups to the growth of the social economy
..............................................................................................................................................11
TASK 3..........................................................................................................................................13
P5 Characteristic traits and skills of successful entrepreneurs that different them from other
business managers................................................................................................................13
Difference between entrepreneur and business manager...............................................14
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset..................15
TASK 4..........................................................................................................................................17
P7 Background and experience can hinder or foster entrepreneurship................................17
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19
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INTRODUCTION
Entrepreneurship is considered as an important procedures of launching and running an
innovative business to generate larger profitability at market place. In this, a person who give
new and innovative ideas is called entrepreneur as they take risk with the aim of converting into
financial benefits. The main focus of an entrepreneur is to establishment of new business with
new ideas that help in inviting more and more customers towards its ideas. This can be beneficial
in improving the possibilities of attaining competitive advantage (Berglund, Johannisson and
Schwartz, 2012). In addition of this, involvement of new and innovative ways is also play a
significant role in attaining success in diversified market place. The main purpose of this report
is to increase knowledge about how to become a successful entrepreneur. This report also cover
different type of entrepreneurial ventures with its typologies along with similarities and
difference between various entrepreneurial venture. Impact of small and micro business over the
development of economy is also mentioned in this project. Furthermore, it also covered skills,
traits, characteristic of an successful entrepreneur that make them different from business
managers. Entrepreneur personality that also reflect their mindset and motivation level. At last,
contribution of background and experience also hinder or fostering the entrepreneurship is also
discussed here.
TASK 1
P1 Different type of entrepreneurial ventures and explain how they relate to the typology
Entrepreneurship: It is referred as an act of determining as well as identifying their own
new ideas for staring a innovative business instead of working for someone others. Mainly, it is a
process that includes various activities related with designing and launching a new business with
the aim of generating huge profitability level. Along with this, it also includes various innovative
ways, risk factors and many more that affect the overall activities of a new venture at the time of
introducing an innovative concept at market place. Basically, it is based in different types like
small, large, social and scalable business (Bridge and O'Neill, 2012). For attaining success in
competitive market, taking risk and introducing innovative ideas are best way through which
business can easily sustain in diversified business environment. Being in the world of internet,
where companies has a open and fairly ultimate chance of increasing customer’s base “lifestyle
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entrepreneurs” are increasing on a good speed. It can be said that lifestyle entrepreneurs are those
who earn their living through online platforms thing they all need is just their laptops and a
proper connection to internet. Their main phenomena of operating a business is to “keep it
simple” and pick a profitable target audience. Basically, lifestyle entrepreneurs are likely to take
a job where they enjoy the activities and gain appropriate amount of incomes from the same.
Whereas, in relation with survival entrepreneurs the basic goal considering which they operate
their business is to meet the financial obligations facing by the company and focus on staying
with the business for a longer period of time however, this makes the employment freeze. On the
other hand, growth entrepreneurs during the initial stage of business invest a high amount of
money and engage themselves in reinvesting as their goal for achieving their growth objectives.
Concept of entrepreneurship: An entrepreneur is an individual who undertake a new
business along with some profits and at the same time also includes amount of risk. Person who
start a new business also have some creative and innovative skill that help them in improving
their business performance at market place. In this regard, entrepreneurship is also based of
creation or extraction of values by focusing on running and controlling a new business.
As there are different type of entrepreneurs who are involved in the concept of entrepreneurship
are as follows:
 Serial entrepreneurs: This type of entrepreneurs or person continuously come up with
innovative ideas in market place (Cardon and et.al., 2012). Serial entrepreneurs also have
created various companies in which some are failed and others were sold. In this,
innovation is the one of the top priorities and the monetary gain is incidental as they
always focus on start a new one in market.
 Intrapreneurs: This type of entrepreneurs is the employee who is always tasked with
identifying an innovative idea within the business organisation. The main aim of
Intrapreneurs is to enhance the company future by developing creative ideas.
 Owner managers: A person who own a business and also manages it with the aim of
attaining all the set personal goals and objectives. Owner managers also focus in
managing or controlling day to day operations within their business organisation.
 Social entrepreneurs: Some who work in under the one who have the ability to address
issues and concerns relevant to community or get a significant impact on environment.
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Public entrepreneurs with their very own interests take chances and explain their projects
to carry out initiatives that are helpful to humanity.
 Female entrepreneurs: They might have the same features as male businessmen; except
they operate their company by themselves. Women entrepreneurs, for even the most part,
work for the charitable purpose and are quite effective at empowering their workers so
that aims and goals can be easily attained.
Along with this, there are different type of entrepreneurial ventures are explained
below:
Small entrepreneurial venture: These businesses are operating their functions at small
scale and also bifurcated on the basis of market size. In this, the capacity of earning profit is low
as compare to other business. Along with this, the main focus of this type of business is to earn
their livelihood by operating their day to day activities. It also put positive impact over the
development of economic condition as it generate job opportunities for local people. Mainly, it
includes companies operate at small scale like electricians, grocery stores and many more.
Large entrepreneurial venture: These types of business are operating their activities at
big level as it is large in size and nature as well. In this regard, the main focus to large business
organisation is to provide quality services to its customers and at the same time company also
work for society development as well (Chell and Karataş-Özkan, 2014). For operating this type
of companies, high amount of capital, resources and all the necessary aspect. The nature of this
type of business organisation is that it includes different sector like manufacturing, hospitality,
retail sector and many more.
Social enterprise: The main purpose of this type of business is to provide social welfare
to people in order to develop society. In this, firm provide better satisfaction of the requirements
of needy people. In context of this, the nature of social business includes providing medical
facilities, working towards food relief and many more. It also helps in improving economic
condition of nation as it contributes in developing the living standard of people by proving them
services as per their needs and wants.
Scalable venture: This type of business is based on the creative aspects in which
entrepreneurs adopt a flexible business plan to accomplish competitive success (Dennis Jr,
2011). As the main focus of this type of business is to providence of higher returns by keeping
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more services, investment of capital. In addition of this, business also get the investment from
the anger investors to manage the enough fund so that they can easily run their business.
P2 Similarities and differences between entrepreneurial ventures
In market place, each entrepreneurial venture operates their business in their own ways
and also includes their different roles and objectives. In this regard, the comparison between
entrepreneurial ventures can be understood by following points:
Basis of
Difference
Small business Scalable start up Large company Social
entrepreneurship
Definition This kind of
venture is defined
at a small scale
because of lack of
skilled employees
and turnover.
Along with this,
small business
also covers only
geographical area
to generate
profitability.
Scalable business
venture is famous
by its continuous
innovation that
help in attaining
higher success at
market place.
Such type of
entrepreneurial
venture includes
huge amount of
investment and
also operate at
large scale in
which the focus
of this company
is to provide
satisfactory
services to its
customers as per
their needs and
wants.
These types of
ventures focus on
fulfilling society
needs and also
solve their issues
to develop
economic
condition and
improve social
welfare as well.
Features Small
entrepreneurial
venture includes
some features like
limited number of
monetary
resources,
This type of
business consider
some features that
they expand their
business with the
help of existing
business along
Large business
organisation
includes big
cycle to operate
its business. As
the focus of this
type of
Such ventures are
focus in fulfilling
society needs.
Along with this,
company also
acquire resources
from government
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