Entrepreneurship and Small Business Management

This document provides an overview of entrepreneurship and small business management, including different types of entrepreneurial ventures, their impact on the economy, and the skills and traits of successful entrepreneurs. It also discusses the importance of small businesses and start-ups in the growth of the social economy.

UNIT 9
ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Different types of entrepreneurial ventures and relate with the typology of entrepreneurship............3
P2 Similarities and differences between entrepreneurial ventures...........................................................5
LO2.............................................................................................................................................................6
P3 Interpret and assess data and statistics to micro and small businesses impact on economy................6
P4 Explain importance of small businesses and businesses start-ups to growth of social economy.........8
LO3...........................................................................................................................................................10
P5 Determine characteristic traits and skills of successful entrepreneurs that differentiate them from
other business manager..........................................................................................................................10
P6 Assess how aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset. 12
LO4...........................................................................................................................................................13
P7 Using relevant example how background and experience can hinder and foster entrepreneurship...13
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Entrepreneurship and small business management is an important source of earning high
amount of profits and revenues and also benefitted the economy of the country. In this a person
having lots of skills and knowledge to start a small business and become a large organisation so
that they can enhance our economy and removing poverty by encouraging prosperity.
Entrepreneurship is called the backbone of an enterprise that provides job opportunity and
satisfies the needs of the customers. this project is related to various range of entrepreneurship
that also includes typology of entrepreneurship. it also inculcates the impact of small businesses
in the economy and how start-up businesses encourage growth and economy of the economy. it
also suggest the various aspects that set the mind of an entrepreneurial to become a successful in
their vision. at last it includes the different environment that can show the foster and hinder the
entrepreneurship(Burns, 2016).
LO1
P1 Different types of entrepreneurial ventures and relate with the typology of entrepreneurship
Entrepreneurship- It defines the essential framework that helps in enhancing the value
of the person and their profitability. It helps in managing and developing the business entity to
gain the profits by taking the risk in the competitive world so that firm may fix their
sustainability for a longer period of time. They cab set their own standards on operating the
business and deals with the large number of obstacles. It includes various types of
entrepreneurship that can be shown below(Burns and Dewhurst, 2016).
Entrepreneurial activity- It defines the term related to individual behavior in which
value can be operated by the business by creating the various economic framework that can
presented with the innovative ideas. In this ideas can be mould into the reality by benefitting the
customers so that company can enhance their profits. it also provides the creatively and
employment opportunity in the country. It can be included different types of entrepreneurial
ventures that can be shown below.
Types of entrepreneurial ventures

 Small entrepreneurship- It defines that business venture that is owned and operated by
an individual person and in this there is mo major competition they face. They sell their
products and services in the local market with a small amount of capital and resources. It
mainly earns a profit of less than € 2 million, where they give the employment
opportunity to the small number of people i.e. less than 50 employees. It includes
Eletotech ltd, as a example of small enterprise(Dana, 2018).
 large entrepreneurship- It refers to that type of organisation that are mainly focus on
satisfying the customers demands by offering them innovative goods and services as per
their taste and values that also helps in beating the competition in the market. They also
provide large amount of employment opportunity to the large area people and they are
working for longer sustainability in the market. Examples are Google, Tesco, M&S etc.
 Social entrepreneurship- It refers to those ventures which are designed to solve the
problem of the society and creating the products and services as per the welfare of the
society people. They are majorly working for making the society a better in t5he world
rather than earning profits and revenues. Examples of social entrepreneurship children
trust(Ratten, 2016).
Typology of entrepreneurship
This term represents the classification of the different entrepreneurship on their particular
basis. It helps the economy of country and society to enhance their growth with the distinct
features of the business operations and in this some of the typologies of entrepreneurship can be
described below.
 Lifestyle enterprise- This aspect of typology of entrepreneurship represents that
entrepreneurs are operated their enterprise for enhancing their living standards and
providing the varieties of opportunities to the local people in the form of their welfare,
employment etc. so that it also affected the economy of the country and enhance the
sustainability of the business. They are basically related to the small and social
enterprise.
 Growth enterprise- This type of entrepreneurial typology can enhance their profits and
growth with their innovative ideas in their product offerings that can satisfy the needs of
the customers. it can involves the large enterprises that can working for gaining the

competitive advantage and the growth of the company(Laudano, Marzi and Caputo,
2018).
P2 Similarities and differences between entrepreneurial ventures
Difference between entrepreneurial ventures
Basis Large company Small company Social
entrepreneurship
Features In context of large
enterprise they invest
more money in the
resources and capital
and also contain more
government invention
in their operations.
It does not contain
more investment and
resources with limited
government
intervention in the
regular operations.
In this type of
business they contain
resources as per the
society welfare with
the involvement of the
government.
Objective The main objective of
large organisation is
to earn high amount
of profit by satisfying
the needs of the
customers by
providing goods and
services(Julien, 2018).
The main objective of
small type of
organization is that
they can earn profits
for feeding their
immediate family
members and
maintaining their
livelihood within the
society.
They are working for
welfare of the society
in a primary mode and
secondly they think to
earn profits by
fulfilling and solving
the needs of the
people.
Scale Large organisation is
operated their
business entity on the
large scale and due to
this they can accept
the challenge and risk
on the high amount to
In small enterprise
they can operate their
business enterprise on
the small unit scale
due to this they can
have small risk and
capital to sustain in
Social enterprise are
operated and
generated their
business unit on local
level so that they can
fulfills the needs and
demands of the people

sustaining in the
marketplace.
the market. by proving unique
solution.
Similarities between entrepreneurial businesses
Basis Large enterprise Small ventures Social enterprise
Fulfilling demands In large organisation
they can fulfills the
d3emands of
customers by
providing the
designed products for
earning more profits.
In this enterprise can
focus on fulfilling the
demands of the local
area people by
providing unique
goods so that they can
earn high
profits(Anderson and
Gaddefors, 2016).
This enterprise is
designed to fulfilling
the needs of
customers by solving
their issues in a
society that helps in
gaining sustainability.
Society uplifting This enterprise is
uplifting the society
by providing job
opportunity to the
large number of
peoples.
This venture is giving
the better opportunity
for employment in the
local market.
This type of business
entity is providing the
opportunity for
improving the living
standards of people.
Profits earning They are working for
earning higher profits
and revenues.
They are working for
earning profits on
small amount.
They are also working
for earning profits by
fulfilling the needs of
society.
LO2
P3 Interpret and assess data and statistics to micro and small businesses impact on economy
To enhance the economy of the country business organisation is playing a major role and
contribute more in the form of enhancing the infrastructure. In this every type of enterprise in the

country impact the economy in a positive way. In UK small and micro business organisation
p[lay an essential role and place a great impact on the economy that can be shown below.
 Small business- This type of enterprise are contributing small part as they provide
employment to the less than 50 workers and working for earning the revenues which are
limited to €2 million. due to small structure they can provide employment to the local
area people and enhance their revenues by satisfying the customers of the local area
people where the business is operated. on small scale they can benefit on the major scale
economy(Piperopoulos and Dimov, 2015).
 Medium enterprise- It represents those type of enterprises which are working with more
than 50 workers but less than the 250 employees with the total number of revenues that is
hold between the €5 million to €22 million. this type of organisation provide the
employment to the workers so that they can enhance their living standard and spend more
on buying the goods and services. they are working for fulfilling the demands of the
customers in the prominent manner so that they can sustain in the market for a large
number of period and beating the completion with their innovation in product.
 large company- This type of entrepreneurial venture are working for satisfying the
needs of the customers with the approximately more than 250 employees and operates
their business on the large scale with the income of €22 million or more. This types of
ventures are done their operations on the global nature and providing the large base of
employment to the unemployed people this is majorly impact the economy because they
can enhance the large people living standards and their buying power(Talebi, Rezazadeh
and Najmabadi, 2015).
Impact of small and medium enterprise on economy

Figure 1- Objectives of small and medium size businesses in the country's economy
 Local level impact- small and medium enterprise may impact the local region because in
this they can provide the goods and services as per the customer’s needs where people in
local area are purchase the offerings as per their prescribed needs. this also helps in
enhancing the living standard of the local people due to this their spending power on the
varieties of goods may enhance also and this will develops the economy of the country.
 National level impact- Due to operating the business of small and medium size
organisation it will ultimately impact the economy of the nation because they can provide
employment opportunity due to this purchasing power of customers may enhance and this
will also help in taking the tax because organisastion may earn high amount of profits and
revenues. In this they can provide innovative goods and services which may helps in
globally dealing the products and services due to this national economy will earn the
foreign currency which is the major part of enhancing the economy of country(Volery
and Mazzarol, 2015).
 Regional level impact- On regional or state level small and medium size organisation
may impact positively as by enhancing the livelihood of the people in the society by
eliminating the problem of the unemployment. it also helps in enhancing and encouraging
the morale of people that they working for enhancing the profits with the supports of
government invention and increase the economy of country.
P4 Explain importance of small businesses and businesses start-ups to growth of social economy
Small businesses and start-up businesses presented as a benefits to the country people and
economy because they helps in the enhancement of the GDP and the currency of the country. It

contains the significant right to the people to provide the employment for completing their task
and objectives for satisfying the customers and gaining the competition in the marketplace. In
case of UK small and start-up businesses are presented as a major part because they majorly
contribute in the development of the country’s economy. Due to this small and scale- up business
get full supports to the government. it can includes various importance of small and start-up
businesses that can be shown below.
 Job opportunity- it is the major benefit of the small and scale up businesses that they
can provide variety of employment opportunity to the number of people as per their skills
and knowledge that helps in enhancing the living standards of the people. In start-up
businesses they can provide quality and innovative products to their customers so that
business may enjoy large profits and sustainability this will helps in paying the tax in an
appropriate way(Hosseininia and Ramezani, 2016).
 Living standard of people- small and start-up businesses may create a great importance
on enhancing the living standards of the people by providing the quality goods at
reasonable price and giving them employment opportunity to the unemployed person so
that they can enjoy their saving in purchasing the goods and services as per their wants.
due to this there image in the society will increases.
 Growth of the economy of country- it is another major importance of the small and
scale up businesses as they can enhance the growth of the economy by earning higher
revenues and profits by selling their offerings to their customers and due to this they can
pay the appropriate amount of tax. This helps in growing the economy of the country and
enjoys the sustainability in the marketplace.
From the above analysis it is to be concluded that small and start up businesses may majorly
impact the growth of the economy and enhancing the living standards of the peoples. these
businesses may provide the quality and innovative goods to their customers and capture the
opportunity to expand their market and satisfying the demands of the customers. that can
attracting the customers to spend more and increase the GDP of the country(Dana, 2017).

LO3
P5 Determine characteristic traits and skills of successful entrepreneurs that differentiate them
from other business manager
To become an entrepreneur and successful entrepreneur it is very essential to have an
various skills characteristics and traits that are under the individual person so that they can
passionately work for their dreams and become a successful in the country. every entrepreneurs
have distinct features due to this they can identified in the crowd very easily. some of the
characteristics, skills and traits can be shown below regarding the Tom mercer and peter David
Jones.
Characteristic of entrepreneurs
 Passion- It is the core feature of the entrepreneur that representing the working
capability of the person beyond their capacity level. In case of Tom Mercer and Peter
David Jones they both have a passion to become a successful in their life by earning
more profits and enhancing their standard of living. In this context business manager is
totally different from entrepreneur because they are working in the organisation by
fulfilling the orders of their superiors not working for their passion(Hoogendoorn, 2016).
 Hard working- It is another characteristic of the entrepreneur in which working style
can be noticed by the person. Entrepreneur has different working style as they are
working hard with belief in our self that helps in completing the task in an effective way.
In this both Tom Mercer and Peter David Jones focus on their task and work effectively
so that they get efficient results. in this manager is different from the entrepreneur as they
cannot work hard for sustaining the organisation because they are not the owners of the
company.
Skills of entrepreneurship
 leadership and communication skill- It is an essential and effective skill of an
entrepreneurs because of this skill both entrepreneurs that is Tom mercer and Peter Jones
offerings supports to their employees so that they get the proper information of
competing the task and deal with the complexities in difficult situation. In this effective
communication also helps in creating the good network in the market with the

stakeholders so that they can enjoy large amount of profits and become successful in the
country. In this term business managers is different from the entrepreneurs because they
only lead their specific team and communicate with them only but the entrepreneurs are
the owners of the business due to this they can communicate with the larger audience to
sustain in the marketplace.
 Creative thinking skill- It shows an effective skill of an entrepreneur where they can
innovate the products and services, processes and methods to operates their business
enterprise and satisfy the demands of the customers. In this both entrepreneurs i.e. Peter
David Jones and Tom Mercer having a innovative thinking that helps in solving the
problems that was present in their operating the business and producing the innovative
goods and services that can attracts the customers. in this managers is different from
entrepreneurs be3cause they are the workers of the enterprise and cannot think creatively
about solving the issues(Klapper, Biga-Diambeidou and Lahti, 2016).
Traits of an entrepreneurship
 Disciplined nature- To become a successful entrepreneur this traits is an essential trait
that shows the balanced nature between the personal and professional life of the both the
entrepreneurs Tom Mercer and Peter David Jones. It also helps in defining the how
systematic entrepreneur can spend their lives and becomes a successful by achieving their
goals and objectives in an effective way. In this manager is different from entrepreneur
because they are only follow the orders of entrepreneurs and not having a control over
their personal and professional life as per the entrepreneur.
 Confident nature- In this entrepreneurial trait both Tom mercer and peter David Jones
having a confidence over their decisions this helps in accepting the challenge and fulfills
it with their effective confidence. In this due to this trait it helps both the entrepreneurs to
convert their entrepreneurial idea into the reality and become a successful. in this
business manager is different from entrepreneurs because they don’t have much confident
as per the entrepreneurs have due to this they are the employee of an enterprise(Mugler,
2017).

P6 Assess how aspects of entrepreneurial personality reflect entrepreneurial motivation and
mindset
To show the entrepreneurial personality there are various traits, skills and characteristics
that can be shown above and to reflect these terms, report can use the OCEAN model that
includes 5 aspects which can be shown below(Hadjimanolis, 2016).
 Openness- It is the first aspect of the OCEAN model that can shows the open minded,
adventures people. it helps in reflect the personality of individual person that have
creative mind and full of curiosity to complete the task this trait is high in both the
entrepreneurs i.e. Tom Mercer and Peter David Jones as they both are containing
innovative nature due to this completion of task can be done in an effective manner.
 Conscientiousness- This personality trait is based on the reliability and focusing nature
of a person. In this both the entrepreneurs Tom mercer and Peter David Jones are stay
focused with their dreams and passion due to this they can done their task in an effective
way and beyond their capacity of performing(Lima and et. al., 2015).
 Extroversion- This trait shows the extrovert nature of the person in this they can
communicate easily with other person and feel more energetic due to this both Tom
mercer and Peter David Jones have fulfilling the objective of society by connecting with
them in an energetic way. this helps in connecting the people and retaining them with the
company.
 Agreeableness- It shows the trust and confident nature of the entrepreneurs that helps in
fulfilling their dreams and making the friendly relations with the peoples. In this Tom
Mercer and Peter David Jones both having a high agreeableness personality due to this
they both get effective results in their field of working and becomes successful.
 Neuroticism- This personality trait shows the emotional stability of a person in every
situation. In this both entrepreneurs Tom Mercer and Peter Jones have the personality in
which they can show calm in every situation this helps in effectively completing the task
and create a healthy workplace where employees are also encouraged to solve the
difficult situation.

LO4
P7 Using relevant example how background and experience can hinder and foster
entrepreneurship
Tom mercer
Background- He is an successful entrepreneur that is graduate from the Cambridge
University and after graduation he is working as a manager consultant with Bain and co. on the
London, UK. He spend their days to thinking about the business idea and stick towards it. he
work in the local area where large number of people are wandering and finding the place for
lunch and dinner. Due to this he thinks to open an outlet for the city workers so that they can
enjoy their day meal effectively. From that local market he captured the opportunity and
established the venture with the name of MOMA food in 2006. He is not come from the high
class people that can encourage them to become a entrepreneur and become successful in the
country by earning more profits(Hadjimanolis, 2016).
Experience- Tom is working in a local area where he found most of the people who do
a struggle by finding the proper place for lunch. From that he got the idea to providing the place
for the people so that they can do their lunch in a proper way. from starting he sells the fruit in an
innovative way to their customers at railway stations and understand the demands and
perceptions of the passengers so that they can elaborate their range and earns a high amount of
profits. in this Tom financial condition create a major blockage in becoming the entrepreneur but
many investors help them that can encourage Tom to expand their business and open an outlet
i.e. MOMA foods.
Peter David Jones
Background- He is a British entrepreneur and a television personality. Peter was born on
18 march 1966 who are famous for Dragen’s Den and American inventor. He is interested in
spending their time with electronic equipment like mobile phones,. television etc. he lives in
South Buckinghamshire with their wife and children. He thinks to become an entrepreneur at the
middle age and got the idea from their parents.

Experience- Peter is appointed as a commander in the British Empire, and he opened a
bar with a name of Cocktail Windsor. After sometimes he become a television star and opens
their enterprise with a name of Dragen den. this helps in becoming the successful in their life and
earns a high amount of profits.
CONCLUSION
From the above included report it is summarized that entrepreneurial and small business
management is an essential term to enhance the economy and growth of the country. in this an
entrepreneur are the individual who are having varieties of skills and knowledge to complete
their vision in an desired manner. in this different entrepreneurs having distinct typologies that
helps in knowing the structure of organisation. and knowing their contribution in the society. in
this start-up and small business also play and important role to provide the opportunities related
to employment and innovation in products that can benefits the economy and society. it also
shows the various mindset and behavior that can hinder and foster the entrepreneurs to increase
their living standards.

REFERENCES
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