Entrepreneurship and Small Business Management

This document discusses the different types of entrepreneurial ventures, their relation to the typology of entrepreneurship, and the impact of micro and small businesses on the economy. It also explores the importance of business start-ups and small businesses in the growth of the social economy.

Entrepreneurship
And
Small business
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Examine various types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship......................................................................................................3
P2 Investigate the differences and similarities between entrepreneurial ventures .....................5
P3 Explain relevant data and statistics to illustrate how micro and small businesses impact the
economy. ....................................................................................................................................7
P4 Explain the essential of business start up's and small business to the growth of the social
economy......................................................................................................................................9
P5 Regulate the skills and characteristic traits of successful entrepreneurs that distinguish
them from other business managers. ........................................................................................10
P6 Evaluate how feature of the entrepreneurial personality reflects entrepreneurial motivation
and mind-set..............................................................................................................................10
P7 Using relevant examples, how experience and background can hinder or foster
entrepreneurship........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Entrepreneurship is basically a concept of developing a new organisation in the market.
Entrepreneur is basically the owner of the business who comes in the market with innovative
ideas so that organisation can achieve its goals. In order to achieve success entrepreneur has to
bear uncertainty and financial risk (Chipeta and Surujlal, 2017). Entrepreneur should always
maintain a healthy relationship with their employees so that performance of the organisation
cannot get affected and profit can be earned. A successful Entrepreneur always guide its
employees about the rules and regulation of the company so that conflicts and be avoided and
healthy working environment can take place they also involve their employees in the business
decision making so that employees can remain motivated and perform their assign duties
effectively. Manager of the organisation should always target their audience and plan their
strategies accordingly so that their demand in the market can be increased. In this report it has to
be analyse that how different factors helps the entrepreneur to achieve its targets.
MAIN BODY
P1 Examine various types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
In the external environment there are different types of entrepreneurial ventures which is
managed by the single entrepreneur. They involve themselves in high amount of risk so that
goals of the organisation can be fulfilled. These ventures should be different from each other to
avail the advantages. Different types of entrepreneurial ventures which are given below:
 Small-business : It includes small-business like electricians, boutique, plumbers etc. they
don't need high amount of capital to run their business. They generally hire family
members and local people as their employees which helps them to achieve their targets
without any loss. In small-business enterprises chances of risk are less which helps the
organisation to increase its productivity.
 Large business entrepreneurship: It involves high amount of capital to satisfy the needs of
the customer. If business will not have the required services of the customer, then it will
decrease the demand of the company in the market for this investment is very important.
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If the small-business is achieving its target by satisfying the buyers, then in the coming
years it can also turn in large business enterprises. In order to sustain in the economy it is
important to have new technologies in the business so that better services can be provided
to the customer. Microsoft, google and Apple are some of the examples of large business
entrepreneurship.
 Social entrepreneurship: These are basically the non-profit organisation there main
motive is to solve the issues of the society. they don't focus on achieving profit for the
work they are doing for the society because they mainly focus on fulfilling the needs and
requirement of the economy. Some of the example of social enterpreneurship are
Urvarshi Sahni, Harish Hande, Anshu Gupta (Ramadani, 2021).
 Scalable start-ups entrepreneurship: It involves high amount of investment in the business
because the main motive of the entrepreneur is to earn profit from the investment which
the they are doing in the business. In these types of businesses high amount of risk factor
is involved because organisation is changing its services in order to increase its demand
in the market which can also effect the performance of the business. Facebook, uber and
Instagram are some of the examples of scalable Start-up entrepreneurship.
 Innovative entrepreneurship: The entrepreneur who comes with the new ideas and
techniques in the business comes under this category because they helps the business to
adapt changes accordingly to the environment which help them to achieve profit and
increase its demand in the market. If the organisation will follow the old trends in market,
then their demand for the product will go down and this will also give the advantage to
the competitors to increase their profit to avoid this situation manager should always
apply changes in their product and services so that there demand in the market can be
increased and revenue of the company can be generated. Uber is the best examples of
innovative industry because now Uber is also providing the taxi services to the customer
which is the innovation in the business some ways apple is also launching its electronics
items in market which will help the organisation to grow in the market.
 Buyer entrepreneurship: These are the type of entrepreneur who purchase a well-
established organisation to increase their profit. They focus on the companies which are
successful so that they can purchase it and do the changes if required so that their
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productivity can be increased. their main motive is to expand their business and earn
goodwill.
Typologies of entrepreneurship: There are various types of enterprises in market. The motive of
the enterprises are to fulfil the requirement of the customer by the services which they are
providing so that their profit can be achieved in the market. there are different types of
enterprises in the market. There are different typologies of the business which are given below:
 Serial entrepreneur: The entrepreneur who starts its business with new and innovative
ideas are known as serial entrepreneur . They helps the business to perform effectively in
the market. If entrepreneur will follow the strategies of other businesses then their
demand in the market will never increase which will also affect the growth of the
business. New skills and ideas helps the business to increase its profit.
 Lifestyle ventures: If the individual have any hobby or talent which can attract the
customers and can increase its profit then they can easily start their lifestyle business. The
main aim of this organisation is to maintain the current lifestyle instead to increasing its
profit. Examples of lifestyle business are photography, cooking, dancing etc (Shirokova,
2018) .
 Female entrepreneurship: These are the type of enterprise which operated by the female
entrepreneur and all the function are also carried by them only. the whole process is
dependent on the female owner.
 Male entrepreneur: these are the type of enterprises which are handled by the male
entrepreneur only the performance of the organisation is dependent on the capacity of the
male owner. If the owner is not performing well then it can affect the performance of the
business.
P2 Investigate the differences and similarities between entrepreneurial ventures
Entrepreneurial Venture plays an important role in the development of the economy
Because they provide the best products and services to the customer so that their needs and
requirement can be satisfied. There are some differences and similarities between the ventures
which are given below:
Lifestyle ventures similarities with other
business
 Serial business similarities with other
business
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 These ventures provides the flexibility
in hours, attire, places so that proper
management can take place .
 These ventures do not have any motive
of earning profit and benefits for the
short period of time.
 There motive is to achieve high market
share with the effective utilisation of
resources so that business can achieve
its goals within a given period of time.
 These ventures focuses on the overall
development of the company so that
their market share can be increased and
goodwill can be earned.
 These ventures provides the
employment benefits to the individual
so that development can take place in
the economy.
 They also focuses on increasing their
market share by satisfying the need of
the customer so that their profit can be
increased in the market and business
development can also take place.
Differences Difference
 These ventures do not supply their
information and data to their financial
advisors.
 These venture does not plan any
strategies in order to perform their
business activities (Zayniddinov,
2020).
 These venture perform their business
activities with their earnings they don't
depend on others.
 These ventures supply their information
and data of the organisation to their
financial advisors on day to day basis.
 These ventures plan their strategies so
that business perform its functions
effectively in the market.
 These ventures perform their business
activities by selling their goods and
services to other business enterprises.
Female ventures similarities Male ventures similarities
 The main motive of these ventures is to
increase their fame by increasing their
marketplace in the economy.
 These ventures generally focus on their
 They also focus increasing their market
share so that their business can achieve
its profit and goodwill can be earned.
 These ventures have the ability to
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performance whether it is related to
their office or family.
 These ventures have the ability to
attract the customers by their
performance and new innovations.
attract the customers through the goods
and services which they are providing
in the market it also depends on their
performance.
 These ventures are more focused while
performing their activities so that goals
of the organisation can be achieved.
Difference Difference
 These ventures perform the functions of
the business in the effective manner so
that development in the organisation
can take place.
 These ventures are basically time
consuming so that goals can be
achieved properly on time.
 Female entrepreneur have more
communicating skills which influence
the attention of the customer.
 In these ventures confidence level is
more as compared to female
entrepreneur which helps them to
increase its profit in the market.
 These ventures form quick decisions so
that their long term goals can be
achieved.
 Male entrepreneurs have low
communication skills which sometimes
affects their performance.
P3 Explain relevant data and statistics to illustrate how micro and small businesses impact the
economy.
In UK there are two types of organisations which are small, micro businesses. These
enterprises play an important role in the economy. They mainly focus on development of society.
Which will increase the chances of employment so that cash inflow can be increased in the
market (Guerrero, 2020).
 Micro: These are basically the small type of business with less number of employees their
main aim is to provide the basic necessities to the customer so that their day to day
required can get fulfilled. For examples vegetable shops, dairy products etc.
 Small: In small business numbers of employees are less in comparison medium size
businesses but in terms of performance they are on top in comparison to micro businesses
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main motive of these businesses is to increase the revenue of the company by providing
the best quality of goods to the customer.
Unemployment rate: small business and business start-up's helped in decreasing the rate of
employment due to which issues related to GDP generation has been resolved. Fall in the rate of
unemployment helps in the growth of the economy because when employment rate will increase
in the market better services will be provided to the economy.
GDP rate: It helps in the growth of the economy it has been observed that rate of GDP has been
reached to 86 dollars which is high amount few years back the rate of GDP was 65 In the coming
years it will be reach 93 as per the observation which will help the country to grow
Impact of Micro and small business in the economy
National and international area: Small businesses helps national area in their economic
growth. The functions of the business should maintained properly by the use of capital so that
growth can take place easily (Hemme, 2017).
Local areas: The main objective of these organisation is to increase the level of employment so
that economic growth can take place and more services to the customer can be provided.
Regional area: These businesses have a large impact on regional area. Because it helps in
improving the quality of goods by overcoming from the problem of manufacturing so that good
quality of goods and services can be provided.
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P4 Explain the essential of business start up's and small business to the growth of the social
economy.
Small business and business start-up's helps the economy to satisfy their needs and
requirement so that their profit can be increased in the market. Some of the small business that
helps in the development of the economy are: Grocery store, yoga centres, beauty salon, clothing
store, cleaning and maintenance service provider etc. In today's worlds people use these services
on the daily basis so that their standard of living can get improved (Parente, 2021).
Business start-up's comes with the innovation can creativity. Innovation is basically the creation
of new ideas and techniques whereas creativity is the innovative ideas in to the reality so that
business can achieve its profit in the coming years.Business start-up's helps in increasing the
employment rate in the economy so that unemployment can be eliminated from the economy. It
also helps in inventing new products and services in the economy because if an individual is
planning for a business start-up then individual will plan new tools and techniques to satisfy the
requirement of the customer so that their profit can be increased in the market.
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Important of small business and business start up's to the growth of the social economy.
 It helps the customer to get products and services quickly: People can easily buy their
daily needs items from the nearby shops which is available in their area because are
always open. For example grocery shops are easily available in the society which helps
the customer to buy their required products and satisfy their needs.
 Employment opportunities: small-business and start-up's helps the skilled and unskilled
people to get employment so that economic growth can take place. When the
entrepreneur of the organisation starts its business then he/she helps the society to
eliminate unemployment from the economy. Because every organisation needs
employees to run their business activities.
 Development of entrepreneurship: Small-business helps in development of
entrepreneurship because today's grocery shop owner can be a biggest retail manufacturer
or supplier in the coming years they have the ability to grow their business and earn
profit.
 Perfect competition: In the marketplace there are few company who are having more
capital as compared to other organisation. Which effect the demand of the remaining
companies because if the company is holding huge amount of capital then they will invest
more in the product and services so that there profit can be increased in the market. In
order to maintain its demand in the market the small-businesses who are not having huge
amount of capital should should sell their at the the same rate for some time so that
company cannot face any loss in future.
P5 Regulate the skills and characteristic traits of successful entrepreneurs that distinguish them
from other business managers.
In order to become successful entrepreneur should know how to utilise its available
resources so that goals of the organisation can be achieved successfully. A leader should always
motivate its employees so that work can be done effectively can revenue can be generated in the
market it also helps in effective decision making which further involve implementation of new
ideas which will helps the organisation to achieve its target. In this report there two brother
Mohsin Issa and Zuber they are the most successful entrepreneur of UK they generated there
income source through the petrol stations and now they are successful in buying supermarket
giant. Zuber and Mohsin Issa started their business with a single petrol stations but now they are
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the entrepreneur of 5,200 petrol stations in UK. They the best example of successful entrepreneur
because handwork always helps individual to achieve its goals. when Issa brothers started their
business they have already planned their to achieve their goals they provided the best services to
the society which helped them to increase their market share and earn profit. A successful
entrepreneur is the one who knows how to use their skills and knowledge in order to achieve
success in life . Issa brother has achieved this success through their skill which they have they
planned a different strategies from other business entrepreneur so that they profit can be more as
compared other organisation. There are five personalty traits which help the individual to achieve
its goals which are focus, self confidence, responsibility, curiosity, patients Issa brothers have
used these personality traits which made them a top billionaire of UK (Van Vuuren and
Alemayehu, 2018).
P6 Evaluate how feature of the entrepreneurial personality reflects entrepreneurial motivation
and mind-set
For understanding the personality of Mark Zuckerberg and Jeff Bezos which has lead
them to success ocean model has been used which will helps in understanding their concept and
strategies.
There are five stages of Ocean model:
 Openness to experience: It helps the individual in try new things so that their imagination
power can be improved so that they can use new and innovative ideas in the business.
 Conscientiousness: It is basically the tendency the to control their behaviour so that goals
can be achieved effectively without breaking the rules and regulation in order to become
successful entrepreneur it is very important to control your behaviour so that negative
cannot take place and work and be done smoothly.
 Extroversion: It is ability of the person to interact with the people. There are two type of
people extroversion and introversion. Extroversion people are the one who are fond of
interacting with people they are mostly talkative. Introversion people get tired easily by
talking with the people.
 Agreeableness: This factor helps to analyse how comfortable a person is while interacting
with others so that trust issues cannot take place these kind of people are more liked by
the society (Stirzaker and Potter, 2019).
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 Neuroticism: it basically focuses on the emotional stability of the person. In order to get
successful in life individual needs to be emotionally stable so that people cannot take
advantage of the feeling and the emotion which a person have.
P7 Using relevant examples, how experience and background can hinder or foster
entrepreneurship.
There are various examples which can affect the entrepreneurship in positive or negative
ways.
 Level of education: Education plays an important role in the life of the individual because
with the help of proper education. Individual can achieve its success in life. Mark
Zuckerberg and Jeff Bozos has invested their time properly in education which helped
them to achieve success their life and also helps the economy to satisfy their needs.
 Nationality: Following the nation and culture is very important Mark Zuckerberg is one
the best examples of this he is mostly famous for the support of the areas where he is
residing he utilise all the available funds in an appropriate manner (Cruz and Basco,
2018).
Background of the individual affects their personality because the ways they have grown
up shows their behaviour in the society Jeff Bezos has grown in a broken family his parents got
separated in his childhood which effected his way of thinking but he was very confident type of
personality which how to control and manage his emotions which made him successful in life.
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On the other hand Mark Zuckerberg has grown up in highly educated family which motivated to
learn and take his education seriously which made a top entrepreneur in the world.
Risk and rewards of business start-up's
RISK
 start-up may not survive for the long period of time if the services of the business is not
as per the expectations of the customers then it can affect the growth of the business
 In the business lot of hand holding is required because company has just started due to
which it requires more attention to perform its activities.
 Start-up's business can take more times in developing its customer loyalty.
Rewards
 when the business start-up takes place in the markets it comes with the new and
innovative techniques due to which it attracts the attention of the customers.
 Entrepreneur starts its business after analysing the market condition due to which it gets
competitive advantage in the market.
 Start up business also gets the opportunities to develops its relationship with the customer
so that customer loyalty can be developed.
Potential Rewards
 when the entrepreneur starts its business then they get the benefit of personal freedom.
 In the business start-up's entrepreneur gets the financial opportunities which means there
is no limit to make money revenue can be generated according services which the
organisation is providing.
CONCLUSION
From the above report it has been analysed that entrepreneur plays an important role in
the growth of the business and if the individual is having the proper skills and personality traits
then business can achieve its success in a short period of time Which will also help in the
development of the country. Successful business in the market also helps in removing the
unemployment from the country
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