Entrepreneurship and Small Business Management

ENTREPRENEURSHIP AND
SMALL BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................4
P1 Different kinds of entrepreneurial ventures and their relation to typology of
entrepreneurship..........................................................................................................................4
P2 Differences and similarities between entrepreneurial ventures.............................................6
LO2..................................................................................................................................................8
P3 Impact on the economy due to micro and small business enterprise -...................................8
P4 Importance of small business and business start ups in the growth of social economy -.....9
LO3................................................................................................................................................10
P5 Characteristics trait and skills of successful entrepreneurs differentiating them from other
business managers -...................................................................................................................10
P6 Measuring the aspects of entrepreneurial personality reflect motivation and mindset........12
LO 4...............................................................................................................................................13
P7 Examining background and experience of entrepreneurs and its impact on their
entrepreneurship........................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is the process of designing, implementing and running a new business. It is
the capacity and willingness to create, organize and control a business enterprise along with the
risks and capability to earn profits. A small business is an independently possessed and operated
enterprise whose revenue depend upon its nature. The report will include scope, development
and growth of entrepreneurial ventures, the impact of small business in the country's economy as
well as international context and characteristic, skills of successful entrepreneurs along with their
experience and background. An entrepreneur is a person who creates a new business, bearing
most of the risks and enjoying most of the rewards. Entrepreneur is the person who converts
idea into plan and plan into the action. Small business requires entrepreneur to have a wide
variety of knowledge or uderstanding related to business topics. Small business owner are
responsible for managing all aspects of their company. Entrepreneurs need to understand or
should have knowledge that how to manage employees, make various business decisions, how to
invest, where to invest and decisions about business assets.
Characteristics of entrepreneurship :-
idea generation:- to start an entrepreneurship idea comes in mind. There are so many ideas, The
best one should be selected. there should be an new idea to start entrepreneurship. Idea
generation is a first step in entrepreneurship.
Profit potential:- new and unique idea has profit potential. Entrepreneurship makes a lot of profit.
An entrepreneur can achieve huge success throughS a new idea so we can say that
entrepreneurship has profit potential.
Risk bearing :- an entrepreneur bear a lot of risk and manages risk. Starting a new business is a
very risky venture. There is a lot of risks in entrepreneurship. An entrepreneur should have
capabilities of risk management.
Related to innovation :- innovation plays significant role in entrepreneurship. The business
ventures must aim to bringing fresh ideas, improved and unique products and innovative solution
to the marketplace. It is all about making things better.

LO1
P1 Different kinds of entrepreneurial ventures and their relation to typology of entrepreneurship
There are mainly five types of entrepreneurial ventures which are explained as below:-
Aggressive growth ventures:-
These ventures are mainly based on technology and have strong innovation skills for
achieving exponential development and growth and its source of finance is done through equity
capital in order to achieve profit as well as to draw new customers.
Purpose:- Aggressive growth ventures purpose is to develop or expand ventures in new markets
creatively and innovatively at both national as well as international level (Venkataraman, 2019).
Definition:- It is Defined as technical based companies with innovative capabilities in order to
seek growth and expansion in new markets for the sustainability.
Example:- Deliveroo is working as aggressive growth company in UK
Survival ventures:-
These ventures are basically referred as the ventures which provides long term existence
or survival for the companies in order to meet the financial obligations and to operate in highly
competitive as well as undifferentiated market. These ventures have enough growth to survive in
this competitive market. It is very complicated to survive and achieve success in this competitive
market that is why there is need of strong strategies and innovative idea to survive long term.
These ventures sustain in the market for long term. These ventures helps in fulfil personal and
organisational needs.
Purpose:- Survival ventures objective is to make the businesses survive or exist on the long term
basis to meet personal as well as company's financial needs
Definition:- these ventures are defined as the subsistence for owners to operate the daily
operations for the long term existence of the business.
Example:- Barber shop, small retail shop are the great examples of such survival companies.
Managed Growth ventures:-
These ventures have feasible business model for the business owners in order to stable
the growth of the business over time in the local market and it does not focus expanding the
business. It focuses on managing growth. These venture want to sustain or retain the growth of
business. (Storey, 2016).