Entrepreneurship and Small Business

This document explores the different entrepreneurial ventures, their impact on the economy, and the importance of small businesses and start-ups for the economy. It discusses the characteristics, skills, and traits required for entrepreneurship, as well as the effect of background and experience on entrepreneurship.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different entrepreneurial ventures....................................................................................3
P2 Similarities and differences between entrepreneurial ventures.........................................4
M1 Investigation of range of entrepreneurial ventures with understanding of entrepreneurship
in the public and corporate sector...........................................................................................5
D1 Scope, development and growth of entrepreneurial ventures...........................................6
TASK 2............................................................................................................................................6
P3 Data and statistics to show impact of SME on economy..................................................6
P4 Importance of small business and start-ups for economy.................................................9
M2 Difference between small, medium and large businesses..............................................10
D2 Impact of small business on different level of economy................................................10
TASK 3..........................................................................................................................................10
P5 Characteristics, skills and traits for entrepreneur............................................................10
P6 Effect of entrepreneurial personality on motivation and mindset of entrepreneur.........11
M3 Argument related to entrepreneurial characteristics......................................................12
D3 Characteristics, traits and motivational driver for entrepreneurs...................................12
TASK 4..........................................................................................................................................13
P7 Effect of background and experience on entrepreneurship.............................................13
M4 Link between Entrepreneurial characteristics and influence of background.................13
D4 Influence of experience and background on entrepreneurs............................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship refers to setting up a new business taking all the risk which are related to
the business with the managerial or financial in order to earn the profits out of the business at the
end. Entrepreneurs are the person who take the risk and generate the new innovative ideas so that
it can be converted into a business and they can earn profits from at taking some risk related to
the business (Kolb, 2020). It is often seen that the ventures of entrepreneurship have a number of
different ownership structures as well as various skills and characteristics which are developed
by different entrepreneurs to start the business. It is also often seen that the personal background
as well as experience of an entrepreneur while they are growing up and have a great effect on the
ways in which they manage the organisation and also decision-making in business. In the
following report description of various entrepreneurial ventures and their effect on economy of
nation is also mention. At the end there are discussions me and all different mind steps which are
required in a business and also the experience and personal background effects on the new
businesses.
TASK 1
P1 Different entrepreneurial ventures
The different concepts of entrepreneurship
There are different kinds of entrepreneurship ventures in a business some of these are discussed
below:
Survival ventures: these are those which are directly related to the entrepreneurship for
survival of the organisation by managing different resources and achieving the short term and
medium term objectives by serving within business environment. Most common example of
survival ventures book store stationery shops and small retailers on the streets of London or other
area who are selling their products by limited capital investment and for their survival.
Lifestyle venture: It includes micro enterprises which are directly related to functioning
of entrepreneurship related to a particular lifestyle. These are basically related to the culture of
entrepreneurship where they follow the leaders in a direction to achieve goals and objectives.
Growth ventures: It includes the organisations which are related to the growth in the
organisation and our main motive to increase the business by increasing their business activities

and retaining in the market for long period of time. Microsoft Apple and Facebook are some
example of this type of ventures.
Different typologies of entrepreneurship
There are a number of different types of entrepreneurship ventures for entrepreneurs
available. It depends on the objective of the business along with the size of the business on which
entrepreneurship venture is an entrepreneur running his business. Below mentioned are various
entrepreneurship ventures and different types of them:
Small business entrepreneurship venture: Small business entrepreneurship venture refer
to all those kind of businesses which are usually run by the owner and the family members of the
owner itself. The number of employees who are hired to work in this business is very low. It is
often seen that the major revenue generation for these businesses are less and also such
enterprises are continuously focusing on attaining more clients and also developing the range of
products and services which are provided for them. The members of the family of the
entrepreneur as well as friends and partners help in running the business. However, it can be said
that there are a number of small businesses which are providing a number of Innovative products
and services to the market. Various examples can be taken as the carpenters, plumbers, small art
and craft provider and soon (Huda and et. al., 2019).
Scalable start up entrepreneurship: Scalable start up entrepreneurship are those
businesses which majorly focus on bringing in new and innovative ideas as well as services for
the customers from the beginning itself. The major motive of the entrepreneur who are running
such business is to bring a change in the world and also they require a lot of investment for such
business. The major fund for this business is attained from various venture capital list. The
entrepreneur could not attain such high capital requirement themselves. It is necessary for these
businesses to make sure that they are using brightest mind as their human resources. Major focus
is put on allotment of human resource for such business activities as all the activities are required
to be innovative.
Large company entrepreneurship: The large organisations which are already doing good
in the market come up with a number of new products and services in order to enhance their
product line. Many businesses use this venture of large company entrepreneurship in order to
extend their product portfolio. The new innovation in the product and new products are usually
generated from changing demand in the market and new requirements and needs of the customer.

It is necessary for such organisation to bring in continuous change in the product line. This helps
them to grab major market share and also stay in the market for a longer period of time. They
require a lot of investment for research and development for the new products and services.
Apple, Microsoft can be taken as an example of such businesses (Legrand and et. al., 2020).
Social entrepreneurship: Social entrepreneurship are basically the businesses which are
only organised to resolve various social problems occurring in the market. They are focusing on
the world to be a better place to live. Their major focuses on enhancing the lifestyle of people
and solving various social issues. These organisations can be profitable, non-profitable as well as
a mixture of both which is usually known as hybrid organisation. The requirement of human
resource for this organisation is not paid much attention to because a number of people
voluntarily join this organisations to serve the society. World health organisation can be taken as
an example of social entrepreneurship business.
P2 Similarities and differences between entrepreneurial ventures
Differences as well as similarities between different entrepreneurial ventures are following:
Basis Small
entrepreneurship
business
Scalable
entrepreneurship
business
Large
entrepreneurship
business
Social
entrepreneurship
business
Similarity Their only aim to
earn profits and
they do not have
any specific goals.
Scalable
enterprises also
aim to increase
the profit
The major aim of
large business
entrepreneurship
is to earn profit by
increasing the
market share.
Social enterprises
also earned profit
to run their
operation because
without profit they
are not able to to
run the business
operations.
Difference Risk is very low
with high
competition in
market
There is huge
finance required
which makes risks
higher (Calic and
Shevchenko,
Medium risks due
to already existing
products in
market.
No risk is attached
to these businesses
as they get
government

2020) support.
Not more than 50
employees
Employee depend
on structure of
business
More than 100
employees
Depends on size
of business
organisation
No proper
structure. Often
sole proprietor or
partnership
business.
Usually limited
partnerships or
corporations
Complex
structure, private
or public
companies
Trustee based
organisations
M1 Investigation of range of entrepreneurial ventures with understanding of entrepreneurship in
the public and corporate sector.
It is often seen that in public sector organisations the organisations are controlled and
managed by the government either directly or indirectly. It is seen that there is a high amount
invested by the government in such organisations along with various private organisations who
are providing help to run these businesses. They are set up to provide various different kinds of
quality products as well as services to their customers. Profitability is not the major reason to
conduct such business. Major motive of public sector organisation is to bring in social welfare
and development in the society .
On the other hand, in corporate sector the organisations are run privately and also owned
privately by individual or public as a whole. A number of different marketing strategies are
derived by these organisations after thorough market research in order to make sure that they are
providing best quality of products as well as services to their customers and also increasing their
profitability along with staying in the market for a longer period of time. There are a number of
large organisation entrepreneurial ventures as a less scalable entrepreneurship ventures which are
directly related and associated with corporate sectors who focus on sustaining in the market for a
longer period of time and developing various competitive advantages in order to gain major
market share in the industry.
D1 Scope, development and growth of entrepreneurial ventures
It is seen that the mission, vision as well as objectives of a number of different
entrepreneurial ventures are also different based on various scope and aims of the organisation.

There are a number of products as well as services which are developed by the organisation in
order to meet the requirements of the customer in the market and also sustain in the market for a
longer period of time (Anishchenko and et. al., 2019). It is required by these organisations to
make sure that they are greatly focusing on the demands and needs of customers along with
continuously bringing in market research to check for new trends and demands in the market.
The growth and development of these ventures are dependent upon the quality of the products
and services which are provided by them in the market and also various strategies of pricing and
competitive advantage in order to sustain in the market for a longer period of time.
TASK 2
P3 Data and statistics to show impact of SME on economy
It is often seen that every business industry have a number of micro and small businesses
which are contributing highly to an economy. There are a number of small and micro businesses
which are helping to generate revenue for the country providing various services and products to
the customers.
In United Kingdom is there are a number of small businesses in various industries. There
is a total of 4.5 million small and medium enterprises established throughout the country. This

provide 99% of all the businesses in the country. The revenue generated by these businesses are
highly contributing to the cross domestic product of United Kingdom. Within all these
businesses 96% of major businesses are micro businesses. They are providing 33% of
employment in the overall economy along with 22% of turnover rate.
From the above graph it can be depicted that there are a number of small and micro
businesses and they are hiring the number of total businesses when compare to medium and large
businesses. They are providing 37% of turnover and also provide 48% of employability
opportunities in United Kingdom.

In the above graph it is shown that how small businesses and micro businesses which bring
innovation in the economy. These businesses are innovators, non-innovators, non-exporters and
exporters. They are generating higher revenue for the company along with bringing up a number
of innovations in products and services. They also help the country to bring in foreign currencies
which helps the economy to grow in United Kingdom.
P4 Importance of small business and start-ups for economy
Start-up organisations to make sure that they are contributing to the social economy
through influencing a number of countries in the process of opening new organisations and
business. It is seen that start-ups come up with a number of innovative ideas of services and
products in order to meet various requirements of demands of customer which were never
realised earlier (Qin, Wright and Gao, 2019). It is also seen that start-up are growing and
capturing a number of market shares through managing higher revenue for themselves
undertaking various risk in very short period of time. These businesses are also bringing in a
number of revenue for the country as well as contributing towards the business tax in order to
make sure that they are incorporating in growth of an economy. It is seen that the requirement of
human resource for a new start up is also growing. With this growing need of human resources
start-ups are also providing employment opportunities in the economy which is leading to
depletion of unemployment rate for an economy. They are providing good salaries for their
employees so that the employees can maintain healthy way of living. In order to manage all the

work, they are employing skilled as well as unskilled employees so all the population are getting
the advantage from start-ups.
It is also seen that a number of start-ups are involved in providing corporate social
responsibility activities which are related to different problems of economy and environmental
issues. This helps them in enhancing and brand value along with bringing benefits for them self.
It is also seen that these business of providing education and other facilities along with interest
actual facilities in the poor financial background and undeveloped regions of the economy. This
is helping the growth of economy as well as the living standard of people living in an economy.
There are also a number of different start-ups businesses which are established in number of
industries in United Kingdom which contribute to growth domestic product of the country.
M2 Difference between small, medium and large businesses
There are a number of small and medium business in United Kingdom. Small and medium
business capture major market. However largest business in the United Kingdom generate higher
revenues. There are a number of large economy of a company tomorrow. It is. But small and
medium size business or more focus on providing innovative products and services to the
consumers.
D2 Impact of small business on different level of economy
Small businesses in United Kingdom have great effect on the economy. In regional level
they are competing with a number of businesses to provide products and services of premium
quality to the customers. They are also providing employment opportunities in the region. They
also help national level organisation to grow. In national level they provide revenues and higher
taxes for the government. At global level this organisation helps the government of economy by
exporting the products and services to various countries (Andonova, Nikolova and Dimitrov,
2019).
TASK 3
P5 Characteristics, skills and traits for entrepreneur
There are a number of different characteristics, skills as well as traits which are necessary
to be incorporated in an entrepreneur so that they are able to successfully run their business and
also increase the revenues and profits of the business. When an entrepreneur sets up a business
there are a number of different procedures which are to be fulfilled by the entrepreneur and make

sure that they are managing all the activities of a business themselves. It is often seen due to lack
of the capital it becomes difficult to manage it. Below mentioned are various personal
characteristics which are necessary to be incorporated in an entrepreneur.
Key traits
Innovation: It is important for an entrepreneur to be innovative at the workplace so that
it can achieve the objective related to development of new tools and technology for maintaining
a proper working environment within the organisation as well as bring in a competitive edge
from its competitors. Sir Richard Branson is a famous entrepreneur who is known for his
innovation trait.
Feedback approach: it is also mandatory to an entrepreneur to become individual who
take feedback seriously. The quality of sir Philip green which is highlighted from their working
where did take feedback from the client in an appropriate manner as well as try to resolve the
conflicts with clients so that they can maintain the client for longer period of time by establishing
relationship.
Key skills
Motivator: Motivator is also important for entrepreneur to develop the skills and abilities
of the individuals as well as staying employees for a longer period of time within the
organisation. These Qualities can be seen within sir Philippines and Richard Branson, where the
board try to motivate the staff in the organisation to achieve the goals and objectives.
Communicator: Entrepreneur must be a good communicator which can communicate
different information as well as understand the information in an appropriate manner. The quality
of our famous entrepreneur build it's who always listen the message send from its subordinate as
well as try to use simple languages. This helped Bill gates in developing better entrepreneurship
qualities where it can guide the individuals in an appropriate manner but communicating the
information (Akpan, 2020).
Entrepreneurs can be differentiated from other business managers on the following basis:
Role: The role of of managers and entrepreneurs are main differentiation between both of
them. Manager are employees to organisation whereas entrepreneurs are owner of organisation.
Motivators: Entrepreneurs are motivated by the achievements of business whereas
managers are motivated by salaries, incentives that they draw from organisation.

Approach: Approach of entrepreneurs can be informal and casual as well on the other
hand it is necessary for a manager to be very formal in organisation.
This clearly explains that there are a number of differences between entrepreneur and a
manager. It is required by entrepreneurs to be motivators, good communicators, team leader and
enthusiastic. These skills help an entrepreneur is succeeding in their
P6 Effect of entrepreneurial personality on motivation and mindset of entrepreneur
It is often seen that on top in your personality of the individuals who are setting up a new
businesses needs to be motivated as they have to deal with the number of people and also
problems as well as risk when they are starting up a business. It is seen that the characteristics
and personality of an entrepreneur helps them to generate a number of new ideas for their
business and also run the business earning profits from it. It is necessary the ideas which are
generated by entrepreneurs should meet various criteria as of demand and requirements of
customers so that the sustainability of the business in the market can be for a longer period of
time. It is necessary for the entrepreneur to have ability of taking risks and also using all the
resources which are available to them for the business carefully so that they can make optimum
use of the resources (Fal’tsman, 2019). The setting up of the goals, mission and vision in order
to develop a proper strategy is also necessary to be done by entrepreneur which requires various
abilities. There are also a number of opportunities present in in the market for the entrepreneur
which is regarded to be identified by them in order to make sure that they are increasing their
revenues as well as profits in the organisation. It is necessary for them to be self-motivated to run
the business so that they can effectively take all the risk which are related to business and also
make sure that all the goals and objectives of the business are managed well.
Example of motivational drivers include
Need for independence: Need of independence is a best motivator within an individual
this is because it is directly related to the satisfaction level of a working entrepreneur. Major
objective of entrepreneur is to work with free time limits where it can achieve the goals and
objectives in an appropriate manner by eliminating the 9 to 10 job hours.
Need for power and control: Entrepreneurship also brain power and control on the
organisation with which is act as best motivator for an individual to become an entrepreneur.
This is because while working on the jobs and cannot execute its power and control over the
organisation prior to achieving plinth within the job. It acts as an power booster for an

entrepreneur which help in removing the restrictions and increasing the opportunities for future
development.
Need for achievement: Need of achievement is a best sense which helps individual to
become an effective entrepreneur within the market. This can be seen from the CEO sir Richard
Branson, he always seeks to become a powerful person who can employ The Other individuals
on its own company. Sense of achievement healthy Richard Branson in becoming effective
entrepreneur as well as developing skills and qualities to manage different individuals
Mindset: The Mindset of an entrepreneur is also formed with the help of personality that
they own. Zack Williams was sympathetic towards students and helped them find jobs. He was
an innovator who came up with new ideas. Another personality trait that helped Zack was his
excellent communication skills which helped him to change mindset of others towards his
business.
Motivators:The personality of an entrepreneur is affecting their motivators in a number
of ways. When an entrepreneur is passionate and devoted to wards their work they will definitely
be motivated. Along with it they will also help others in organisation to remain motivated and
attain their objectives. Ms Rana Harvey had a strong personality who required full ownership
and control which motivated her and others in the organisation.
M3 Argument related to entrepreneurial characteristics
Small businesses in United Kingdom have great effect on the economy. In regional level
they are competing with a number of businesses to provide products and services of premium
quality to the customers. They are also providing employment opportunities in the region. They
also help national level organisation to grow. In national level they provide revenues and higher
taxes for the government. At global level this organisation helps the government of economy by
exporting the products and services to various countries.
D3 Characteristics, traits and motivational driver for entrepreneurs
Miss Rana Harvey is the entrepreneur of monster group. She is fascinated and motivated
business woman who runs a laboratory. She works all the activities related to the business single-
handedly. The finance which is available for business is allocated by her two different activities.
She is effectively making plans for future in order to deal with all the risk and grow and expand
her organisation (Ye, Xiao and Zhou, 2019).

Zack Williams is the owner of grand touch. They provide consultancy services to students.
Communication skill of the entrepreneur is helping him to get a number of clients and also take a
risk ability in the business. There are a number of innovative ideas brought by him in order to
help student were looking for job and also motivate them for their future.
TASK 4
P7 Effect of background and experience on entrepreneurship
Personal background as well as experiences which are seen by an entrepreneur through
their childhood itself have a great impact on the business and the kind of business they run. It is
often seen that the personal background usually consist of various family and friends and support
from them, motivation from them as well as financial help and financial background of an
entrepreneur . When an entrepreneur is getting correct support and motivation from their family
members and friends, they can efficiently set up their business. It is also seen that the support
which an individual gets often motivates them to take more risk and earn more profits in the
business. Financial background is also related to risk taking ability of an entrepreneur in a
business. It is seen that when an entrepreneur has strong financial background, they may take
more risk for their business. It is also seen that if an entrepreneur is not getting proper support
and motivation from their family members and friends, they might get demotivated while
running a business (Sabat and et. al., 2019).
The personal experiences of an entrepreneur also affect the type of business they run. If an
entrepreneur is having good experience in sport is and positive environment when they are
running a business, they may run the business for a longer period of time and also earn a number
of profits out of the business. It is also seen that if the experience is not good for an entrepreneur,
they may hesitate in setting up a business and take the risk attached to it.
M4 Link between Entrepreneurial characteristics and influence of background
Personal background of an entrepreneur has great impact on the business they run. Miss
Rana Harvey is a chemist who have a business named monster group she is self-motivated and
also participates in a number of business program so that she can effectively run all the business
by herself. All the planning and making strategies of a business is conducted by her acting as a
leader in her organisation.

Zack William is the owner of grand touch is providing consultancy services to all the
students who are aspiring to look for a job. He’s also self-motivated businessman who has good
experience with students and a number of clients so that they can motivate them. There are a
number of risks required to be taken by him in order to run his business effectively. This is an
important part for him to grow his business (Dobina and et. al., 2019).
D4 Influence of experience and background on entrepreneurs
The background and experiences of both the entrepreneur Ms Rana Harvey and Jack
Williams have motivated them to set up their business. If they do not have an efficient team and
they lack in motivation they could not survive in business and could not grow. The past
experiences have also affected them negatively as due to weak financial background and support
they needed to take a lot of risk for their business which was about their risk-taking capability.
CONCLUSION
From the above report it can be concluded that there are a number of different types of start-
up businesses which include small, micro, medium as well as large businesses. There are also
different typologies of these businesses which includes different aims and objective of business.
The requirement for human resource for this business also very. It have also been concluded that
the contribution of small and start-up businesses to an economy is very high. They help in
generating employment in an economy along with intra structure in the backward areas in an
economy. It can also be concluded that there are a number of different set of skills and mindset
which are required by an entrepreneur. These helps in entrepreneur to set up their business and
also run the business along with various decision making in the business. In this way they can
effectively handle a new entrepreneurship and also earn profits from the business losing revenue
and expanding their business.

REFERENCES
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