Entrepreneurship and Small Business Management

This document provides an overview of entrepreneurship and small business management. It discusses the types of business ventures and their relation to typology of entrepreneurship. It also analyzes the impact of micro and small businesses on the economy. Additionally, it highlights the skills and characteristics of successful entrepreneurs.

ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Types of business entrepreneurial ventures and their relation to typology of
entrepreneurship...........................................................................................................................1
P2 Differences and similarities between entrepreneur ventures. ................................................3
LO2..................................................................................................................................................5
P3 Analysis of data and statistics to show how micro and small business impact on the
economy.......................................................................................................................................5
P4 Small businesses and start-ups importance to the growth of social economy. .....................5
LO3..................................................................................................................................................7
P5 Skills and characteristics of an entrepreneurs.........................................................................7
P6 Personality reflecting entrepreneurial motivation and mindset..............................................8
LO4..................................................................................................................................................9
P7 Experience and background of entrepreneur hindering or fostering entrepreneurship. ........9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Entrepreneurship is the practice of designing, starting and continuing and running
a new organisation. Entrepreneurship is defined as the capacity and agreeableness to develop,
organize and manages a bunisses organisation along with many risk and profits. Start-ups and
small business is the practice which is been used by entrepreneurs while running the business.
Small business management requires entrepreneurs to have high variety of knowledge and
understanding related to business operations. The study will highlight the various types of
business ventures and their relations with typologies of entrepreneurship (Burns and Dewhurst,
2016). The report will show statistics and data to show how small and micro business impacts on
the economy. Moreover the study highlight the differences and similarities between types of
ventures. Report will describe why small business and start-ups assist to growth of social
economy. Further, the characteristics and skills of successful entrepreneurs will be highlighted in
study. The study also highlights how personality and nature of entrepreneurs reflects motivation
and mindsets.
LO1
P1 Types of business entrepreneurial ventures and their relation to typology of entrepreneurship.
An administrator is a person who starts an business and continues a business with very
few resources and is responsible for all the rewards and losses in business ventures. Entrepreneur
ventures can be described as an organization which focus on innovative and new offerings
(Welter and Gartner, 2016). There are various types of entrepreneurial venture which are as
follows-
Aggressive growth venture
Aggressive growth ventures focus on providing high quality goods and services to the
customers. The main of aggressive growth venture is earn high margin of profits on their
products and services. The prices charged by this growth venture is high as if focus on quality of
products rather than its prices. The market of this type of venture is not very large as all the
customers are not ready to pay high prices for the products. The typology followed by this type
of venture is lifestyle typology (Burns, 2016).
Survival growth venture
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The aim of survival growth venture is to do business so that they can survive in the
market. The aim is to earn enough profit by which they can survive in the market. Survival mode
means cutting cost, reducing profit margins and saving cash which can be used for different
activities (Hatten, 2015). Survival growth venture focuses on daily earning rather than making
long term objectives or goals as the purpose is to earn minimum amount of profit from which
they can survive in the market.
Public sector
Public entrepreneurial venture are do business activities foe social purpose though their
aim is to earn profit but also to do social services. They offer good quality products at
reasonable prices. The market of public growth venture is large as compare to other business
entrepreneurial ventures. The government innervation is their in public sector enterprises as most
of the activities are controlled by the government and all the working is done by following the
guidelines of the government (Burns, 2016). The typology which is used by public sector is
social typology.
Private sector
Private ventures are run by private individuals. The purpose of this type of venture is to
earn high amount of profits by offering high quality products. Private entrepreneurs focus on
profitability rather than doing social services. In private sector there is no role of government
private entrepreneurs according to their choices without any others interference. The market of
private ventures is good enough as it provides high quality products and services to the
customers.
In the field of entrepreneurship typology is the term used to describes classifications rather than
its basis. There are Different types of typologies which are as follows-
Social typology
This typology focus on providing social benefits to the people rather than making high
profits (Hatten, 2015). The aim is provide social benefits to people and do work for public rather
than focusing on money.
Lifestyle typology
Lifestyle typology aims at providing high quality products to the people with latest
fashion. Thus aims at improving lifestyle of people. The products and services offered are of
high quality so high prices are charged from the customers.
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P2 Differences and similarities between entrepreneur ventures.
The comparison between different entrepreneur ventures are as follows-
Aggressive
growth venture
Survival growth
venture
Public sector Private sector
Objective This venture
focuses on
providing high
quality products
and services. The
aim is to earn
maximum profit
from business
activities. The
venture focus on
growth rather than
compromising
with the prices
(Volery and
Mazzarol, 2015).
This venture aim
is to earn
minimum amount
of profit by which
they can survive in
the market. The
purpose is not to
raise high amount
of profits or any
goal term goal.
The venture do
business activities
at very less profit
margins as the
purpose is to
survive in the
market. .
The business sector
focuses on
providing high
quality products to
customers at
reasonable prices.
Public sector
activities are
governed by the
guidance of
governed. The
sector do business
activities for social
purposes though the
aim is to earn profit
but it gives more
focuses more on
social activities
(Zeyen and
Beckmann, 2018).
This sectors are run
by private
individuals. The
aim is to earn high
amount of profits
by providing
premium quality
products and
services to
consumers by
charging high
prices. There is no
involvement of
government in
private sector.
Market size The market size
for aggressive
growth venture is
not very large. As
the prices charged
The market size in
survival growth
venture is very
small as business
activities are done
The market size of
public sector is very
large. As the
venture provides
high quality
The market size for
private venture is
large but not very
large. As the
business focuses on
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are high so there is
less customer base
.
just to survive in
the market.
products as
reasonable prices so
there is larger
customer base
(Ratten, 2016).
providing quality
products and
services to
consumers so those
people priority is
quality pays higher
prices and make
purchases.
Structure The structure of
this venture is
functional,
product and
market oriented.
As the business
focuses on growth.
The structure of
this type of
venture is little to
none. No specific
structures is there
for doing business
activities
(Andersson and
et.al., 2018).
The structure of
public venture is
medium not very
large as business do
activities for social
welfare.
The structure of
private sector is
large and very
advance. As
business operates in
all areas with
adequate return on
investment.
Economic
motives
The economic
motives of this
venture is wealth
creation. Venture
focus on growth
by providing
premium quality
services.
The economic
motive of this
venture is to just
earn that much
living by which
they can feed their
family members.
The motive of
public venture is to
provide social
benefits to
customers by
offering high quality
products and
services at
reasonable prices .
The economic
motive of private
sector is to create
wealth and
goodwill in the
market by offering
good quality
products.
Though there are many differences between types of entrepreneur ventures but there are
many similarities also. All the entrepreneurial ventures required finance for carrying out business
activities as without enough funds the business operations can not be carried out. All business
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makes financial and working policies for doing business operations (Andersson and et.al., 2018).
Another similarity between all the ventures is that all focus on satisfying their customers by
offering products and services according to their needs and requirement. All ventures works for
generating profits by doing business operations though there is difference, that some aims at
earning high amount of profits and some aims to earns minimum amount of profit.
LO2
P3 Analysis of data and statistics to show how micro and small business impact on the economy.
SME compromises a major part of the UK economy and helps in boosting SME
productivity growth has an major influence on overall UK productivity. There was 5.4 millions
SMEs in UK in 2016, which was over 99% of all businesses. Micro businesses have 0-9 workers.
There were 5.3 million small organisations in the UK in 2016, accounting for 96% of the
businesses.
Although the majority of organisations in UK employ less than 10 people, This type of
organisation only accounts for 32% of the employment and 19% of turnover. Total employment
in SME was 15.7 million, 60% of all private sector employment in the UK. The overall annual
turnover of SMEs was EUR 1.8 trillion, 47% of all the private sectors turnover in the UK
(Ayandibu and Houghton, 2017).
Impact of micro economy and small businesses on UK economy.
In average businesses, amounting 250 people are appointed in a company whereas
maximum 9 people are not in the favour of micro business, Thus this resulted in limited
employment opportunities. But the fact is that the no. of businesses are expanding which results
in generating more opportunities for young people.
Revenue generated by small businesses has a major impact over the UK economy.
whereas average organisations does not have greater influence. Around 99% of total companies
in UK is mixture of small and medium businesses. Currently there great competition among the
industries in UK economy (Saleem, 2017).
P4 Small businesses and start-ups importanceto the growth of social economy.
Employment opportunities
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Start-ups and small organisations impacts the social economy in this way that it generates
employment opportunities for candidates. The talented candidates got job buy these new start-
ups and small businesses. More employment is generated which results in this way that the living
standard of people gets improved. People have enough money to live their life in an decent way.
It is helpful for those candidates who may not be employable by larger corporations. Different
types of start-ups gives different types of employment opportunities to the people and people
according to their preference gets the jobs.
Improving economic condition
Start ups and small business stimulate economic growth as it provides employment
opportunities to the people. The small organisation continues in generating higher revenue. By
new start-ups more funds is generated which helps in improving economic condition of the
nation. Start-ups and small organisations generates less revenue than bigger corporation which
means that they have less to loose in the time of crises (Saleem, 2017). The small business
impact on local economy growth as it the country charged different types of taxes from the
business which overall assist in improving growth of social economy.
Cultural diversity
New startups and business assist in improving cultural diversity, as employees are
recruited from various cultures. Different people have different view points and suggestions
which helps in creating an innovative product. Employees of different cultures work together and
more innovative and creative product is generated. By generating higher revenue from better
quality services new start ups and small businesses helps in growth of social economy. Small
business offer different types of products and services according to the needs and requirements
of customers (Zeyen and Beckmann, 2018).
Innovative
Small businesses are the innovators of the world. New business and small organizations
makes an effort of manufacturing innovative and creative product. Small business attracts those
talents who have can give new ideas and solutions for the existing problems. Small business
owners are innovators, actively pursues new opportunities and implement strategics business
changes to solve problems and growing the business (Ayandibu and Houghton, 2017). They
focus on manufacturing new products by using advance technologies and methods. how As
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innovative products are created which are purchased by the customers assisting in higher
generation of revenue and thus, this impacts overall growth.
LO3
P5 Skills and characteristics of an entrepreneurs.
The two successful entrepreneurs are Peter Jones and Richard Branson and their characteristics
and skills are as follows:
Characteristics of Peter Jones-
 Peter Jones is an self confident entrepreneur. This characteristics helps him in this way
that he takes all the decision on its own without the help of any other person.
 The entrepreneur is goal oriented and do all business activities according to the goal. He
knows very well that things which distracts him from the goals he don't do that and keeps
himself goal oriented.
 Peter Jones is creative entrepreneur and have innovative ideas of doing work which helps
him in leading the business operations (Dana, 2018).
 Peter Jones is passionate and have high determination towards the work which helps in
making business successful.
Skills of Peter Jones-
 Peter Jones has a great time management skills. Entrepreneur manages all the activities of
business on time.
 Peter Jones has great communication skills. Through this skill entrepreneur successfully
maintains healthy relations with the employees and creates good working environment.
 Peter Jones is an self motivated entrepreneur. This skills makes him successful as
without self motivation entrepreneur can not motivate others.
Characteristics of Richard Branson-
 Richard Branson is an responsible entrepreneur. He understands his role very well and
takes responsibility.
 Richard Branson is persistent ie, never give up too early. This characteristics differentiate
them from other business managers as any difficult situation comes in business he solves
on their own without giving up (Dana, 2018).
 Richard Branson action oriented as he takes quick actions in business. Quick decisions
leads to organisation's productivity.
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Skills of Richard Branson -
 Richard Branson has great problem solving skill, which help the business in this way that
if any problem arises he solves them in an efficient and desired way.
 Richard Branson has a great decision making skills which makes him different from other
entrepreneurs. By good decision making skills entrepreneur takes decision which is best
suitable according to situation.
 Richard Branson has an ability to learn new things. Learning keeps administrator updated
with the changes in technology, evolution of industry, sales process and other process
(Schaper, 2016).
P6 Personality reflecting entrepreneurial motivation and mindset.
Reflection of entrepreneur personality.
Peter Jones is a self confidence entrepreneur. Entrepreneur performs all the task on his
own and has strong belief on the task which they do, so in this way it assist in raising motivation
level. Peter Jones is open minded entrepreneur this impacts the mindset of the entrepreneur in
this way that he is always ready to learn new things and accept the ideas of other people. Peter
Jones is an goal oriented entrepreneur so he knows exactly what to do and what not to do, this
created a sense of motivation. As entrepreneur is an goal oriented so whatever situation arises in
the business he never distracts from achieving the goals and works very smartly and passionately
to achieve the goal. Entrepreneur is an creative person so it enables him to develop new and
innovative ideas for business (Welter and Gartner, 2016). Creative and innovative ideas help the
entrepreneur in making new polices and marketing practices. Thus, this helps in dealing with
competition in the market.
As the business task are carried out on time thus leading to bettor output and greater
productivity. As Peter Jones is passionate and detriment towards the work and perform all his
duties with heart, this personality impacted in this way that the business operations carried out
gives better results and assist in increasing productivity of the business.
Richard Branson is an action oriented entrepreneur, all the business decisions are taken
by himself only. This created a sense of motivation in this way that entrepreneur has not to
consult other for making any decision and this results in this way that decision making becomes
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faster. As Richard Branson is an risk taker entrepreneur and also have skills to minimize risk, as
if any uncertain situation arises in the business entrepreneur minimizes that in an desired manner.
The entrepreneur is is a self leaner and keeps on reaching business concepts, industry and
market conditions, thus by this the knowledge of entrepreneur increases and impacts the mindset
in an positive manner (Welter and Gartner, 2016). Richard Branson is an open minded and
extroversion ie, administrator listens to the ideas of other people and if he found them beneficial,
he implements them in businesses, thus this is beneficial for the business and entrepreneur both.
This makes his entrepreneurial style better and keeps him motivated.
LO4
P7 Experience and background of entrepreneur hindering or fostering entrepreneurship.
Peter Jones is a British entrepreneur, businessman and has reality television personalty
with interest in mobiles media, television and mobile phones.retail and property. He set ups a
business by manufacturing PC under his own brand when he was only an 16 years old.
Entrepreneur has gone in losses after he decided to sell the business to IBM. After that the
motivation level of entrepreneur goes down and it stops him to again start a new business. But
after some time he encourages himself and again decided to do business, he owns a production
company who manufactures TV called Peter Jones Tv and also made other property investment
and by this he earns a high amount of money. Thus, this encouraged him in becoming successful
entrepreneur (Kuratko and Morris, 2018).
Richard Branson is a British business investor, author and Philanthropist. Entrepreneur is
the founder of Virgin group and started the Virgin group in 1970s, which today controls 400
companies in various fields. Bronson virgin brand grows fastly during 1980s and he earns lot of
money from that and this foster entrepreneurship and after that he started Virgin Atlantic Atlantic
and successfully expanded virgin music label. Entrepreneur has an desire from childhood to
become and successful entrepreneur at very young age. His first company was started at the age
of 16. By all this entrepreneur gets a lot of experience about business and thus assist in fostering
entrepreneurship (Almahry, Sarea and Hamdan, 2018).
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CONCLUSION
The study concluded that administrator plays an important role in business. They are
owners of the business who takes risk and is liable for profit or losses within the organization.
Different types of entrepreneurial ventures are there ie, aggressive growth venture, the aim of
this type of businesses is to earn wealth in the market by offering advanced services and
premium quality products to consumers. They focus on product quality rather than
compromising with the prices. Public growth venture aim is to offer high quality products at
reasonable prices, it focuses more on social welfare rather than earning high amount of profits.
Activities of public growth venture are monitored by government as they can not do all the
business operations on their own. Entrepreneurs must have problem solving skills so that they
can deal with any problems without any concerning to any others advice. Thus, this results in this
way that faster business operations are carried out.
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REFRENCES
Books and Journals
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