Unit 9 - Entrepreneurship and Small Business Management

Entrepreneurial and
small business
management

INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Different types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship..........................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures..............................................3
LO2..................................................................................................................................................5
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on economy......................................................................................................................5
P4 Importance of small businesses and business start-ups to the growth of social economy.....7
LO3..................................................................................................................................................7
P5 Determine characteristic, traits and skills of successful entrepreneurs that differentiate them
from other business manager.......................................................................................................7
P6 Aspects of entrepreneurial personality reflect entrepreneurial motivation and mind-set.....10
LO4................................................................................................................................................11
P7 How background and experiences can hinder and foster entrepreneurship.........................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship and small business management refers to a sequence of learning new things
and is the heart of every business. It includes large company to small business and social
enterprise to scalable ventures. It is designed to build entrepreneurial skills and knowledge step
by step in an individual person mind. This report is based on entrepreneurs who can start their
business for earning more money and increase the economy of a country. It includes range of
different types of ventures with their typology and it also differentiate and similarities in
entrepreneurial ventures. Further it shows the impact of small business on the economy with the
importance of business start-ups and growth of the social economy. It also includes the
characteristic, traits and skills of successful entrepreneurs that differentiate it from business
manager which helps in earning more and more profits. And at last it explains the background
and their personal experience that hinders or fosters to become a successful in their business and
in the country(Burns, 2016)
.
LO1
P1 Different types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship
Entrepreneurship
It refers to that business venture which is related to the finding the opportunities beyond
the resources controlled. It is the process of designing, running and recognising a new business
that is often a small business. The people who created and invented the businesses are called
entrepreneurs. It simply defines as a setting up a activity of business and businesses while taking
up a financial risk in the hope of profits (Hatten, 2015).
Entrepreneurial ventures
It refers to that ventures that is focused on the giving the advisory services to early and
mid-stage companies. They prominently focus on the new and innovative services and product
offerings to those businesses that need them. Their motive is to make innovative and make
opportunities in the heart of businesses to produce economic and social values.
Types of entrepreneurial ventures
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There are various types of entrepreneurial ventures present in the country who contributes
in the national economy and social welfare. Some of these are as follows.
 Large company entrepreneurial venture- This type of enterprises refers to that where
growth and innovation is most important to attract more customers and for longer
sustainability of the business in the market place. They focus on the customer’s needs and
wants, adapting new technologies and gaining the competitive advantage. They sale their
product offering in the new markets to earn more and more profits and increasing the
market share. It includes Samsung, Apple.
 Social entrepreneurship- This refers to those enterprises that produce innovative goods
and services to solve the problems related to the society and country economy. Their
main aim to make a better world by providing healthy resources and valuable resources.
Hence, these organisations are related to non-profit, hybrid and for profit. Example –
safepoint trust. Scalable start-ups business ventures – It refers to those organisation or business venture
that believe in changing the world with their vision and mission. Their funds are raise
from venture capitalist. Their main motive is to find the scalable and repeatable enterprise
model. After getting the funds and financial helps from the venture capitalist they focus
on growing their business enterprises. They make a small proportion of the company
because of high risk and outsize returns. Example – face book, Instagram, Google
(Antoncic, B. and et. al., 2015). Small business enterprises- It refers to those business ventures that make profits from
selling the innovative goods and services to their customers in a local area. The size of
the venture is relatively small. These enterprisers do business for their individual family
and make their life comfort. Examples – hairdressers, travel agents, internet commerce
storefronts, carpenter, plumber and electricians and many more. They are the sole
responsible of their profits and losses.
Typology of entrepreneurial ventures
 Female typology – This refers to those entrepreneurs typology in which businesses are
regulated, operated, organises, manages and imitate by a women entrepreneur. It is
included in the social entrepreneurs because they think towards the welfare of society.
These enterprisers are take difficult decisions in a very calm nature. They work for
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coordination and cooperation in the firm. They raise funds from government assistance
for starting and growing their firm.
 Male typology – It is related to the large company enterprises because they mainly focus
on the earning more revenues and taking decisions that is beneficial for the company.
They raise funds from the various external sources like bank loan, overdraft facility. In
this type of organisation there are no restricted work hours because males have no time
related issues. They take more risk this will helps in earning more profit with high growth
(Naldi, Achtenhagen and Davidsson, 2015).
 Serial typology - This typology is belongs to the scalable start-ups business enterprises
where a person regularly comes up with new ideas for starting a new business and
growing the existing one. Their main source to raise funds is venture capitalist. They
deals with the day to day functioning of the company.
 Social typology - This typology is related to the social enterprises where every
individuals or business organisations are work for the welfare of the society. There main
motive is to solve the problem and give the accurate solutions to the society people and
earns profits in them.
P2 Similarities and differences between entrepreneurial ventures
Difference between entrepreneurial ventures
Basis Large company
entrepreneurial
venture
Small enterprise
venture
Social business
entrepreneurial
venture
Scalable start-
ups enterprise
Concepts It refers to those
organisations
where business
do activities to
innovate their
product offering
to earn more
market share
with high growth
(Piperopoulos
It refers to those
business
enterprises where
a person is sole
responsible of
earning profits
for their
individual
family. They
deals with the
It refers to that
business venture
where a person
or a firm is
related to solve
the problems
related to
society. This
belongs to non-
profit, hybrid or
It simply defines
those business
enterprise where
they invest in
innovation of
start-ups and for
growing existing
business. There
raise funds from
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and Dimov,
2015)
.
limited capital
with limited
resources
for profits. venture capital.
Key attributes Key feature is to
earn more profits
by satisfying the
customer needs.
Their main key
attribute is the
longer
sustainability of
business because
they feed their
family members.
Main feature is
to drive to
achieve large
scale social
change.
Significant
feature is to
looking for
investors who
invest in their
start-ups and
growing the
existing one.
Purpose The purpose is
doing the
business is to
earn more profits
with customer
satisfaction and
to gain the
competitive
advantage in the
market.
the main
objective is top
longer survival
of business to
feed their
individual family
members and
friends. The
amount of profit
is relatively
small.
Purpose of this
business venture
id to helps the
society resources
by solving the
problems of
them.
There main aim
is to innovation
and creativity in
the business
activity which is
beneficial to
attract many
peoples and
clients.
Example Google,
Microsoft and
Samsung
Grocery store,
carpenters, hair
dressers.
Social
constructionists,
social engineers
Face book,
Instagram and
online shopping
electronics.
Similarities between entrepreneurial ventures
Basis Small
enterprises
Large company
entrepreneurial
venture
Social business
entrepreneurial
venture
Scalable start-
ups
entrepreneurial
4

venture
Contribution
towards the
economy
They do small
contributions
towards they
nation economy.
They also
contribute in the
economy
according to the
profits earn.
They do less
contribution in
the economy.
They make more
and large
contribution the
country
economy.
Social welfare They use the
resources that are
environmental
friendly and do
not harm the
society (Ratten
and Dana, 2015)
.
They also work
for the social
welfare as they
provide
employment to
the unemployed
people.
This type of
entrepreneurial
ventures also
works for the
benefits of
society as they
solve the
problems that
were raise in the
environment.
They work for
the welfare of
society in a way
that they
provides
innovative and
unique products
to the people.
LO2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on economy
Micro and small business enterprises capture and grab most of the part and contribute
highly in increasing the country economy. Total number of small and medium size
enterprise increases overtime and generates more income and revenue by giving various
product offerings to the people who live in the society.
In United Kingdom there is increasing number of businesses in different industry that
creates a more than 4.5 million small and medium size enterprises all over the UK. That
covers almost 95% of the businesses in the nation. Although, the profit and revenue
generates by these type of enterprises have largely contributes in the economy and GDP of
the country in which they operates like UK. They also provide employment to the
5

unemployed person who lives in the local area. And they contribute more on the
employment and increase the total revenues.
As per this graph, the number of small and medium size enterprises is more and higher as
compare to large company’s enterprises in the country UK. In this graph data related to
turnover of small and micro business is 37% which provide the employment of 48%
people who live in the nation.
The small and micro business can be distinguished between the category related to
innovator, exporter, non creativity and non exporters. This type of businesses generates
and earns income and profits with or without innovation. Therefore many of this firms can
exports their goods to earn a foreign incomes that help the national economy and improves
the GDP of the country.
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P4 Importance of small businesses and business start-ups to the growth of social economy
Small business and start-ups business make a high influence on different countries because it
helps in earning more profits and revenue and contributes in the national economy and GDP of
the country. They also provide employment to the unemployed person in the country UK. There
main motive is to provide innovative products to their customers and meet the requirements of
the consumers (Dana, 2018).
Although this start-ups businesses captures the whole market very quickly because they start
their business with innovative thoughts and ideas that attracts more and more people and
generate a higher income within a short period of time.
Therefore, social and start-ups business need more investment and they provide a high
amount of business tax that helps in contributing more on country economy. They raise
funds very easily form government, venture capitalist, bank loan etc.
This type of businesses related to cooperate social responsibility that solve the problems that
was arise in the society this will enhance the brand loyalty of an enterprise in front of the
peoples.
They provide education to those people who are very helpful in economic growth. So that
this will increase the brand image of the company in front of many people who live in the
society. And they contribute more on national GDP and countries economy.
LO3
P5 Determine characteristic, traits and skills of successful entrepreneurs that differentiate them
from other business manager
Entrepreneurs are the best examples for the earning more profits and increases GDP of the
country. Bobby and Simon have some characteristic, traits and skills that help in becoming
the successful entrepreneurs in the UK. Some of these are as follows.
Simon Arora
Simon was born on November 1969 and completed his education from Cambridge
University. He was a successful billionaire in the UK. Following are the characteristic, skills and
traits that was helpful in becoming the successful that was explained below (Lewis, 2015)
Characteristics
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 Self – motivation - It is one of the most important characteristic of an entrepreneur is
self- motivated. In this a person pushes themselves to become successful. Simon is
very motivated towards their goals and objectives this helps him making the successful
in the business. Manager is different from entrepreneur as they are the employees of
the organisation and do only that work which the entrepreneur told.
 Passion- Another characteristic of an entrepreneur is that they are passionate about
their thoughts. In this Simon has very passionate about their vision this become a
successful entrepreneurs in the country. Managers are different from entrepreneurs
because they are not passionate about their vision as per the entrepreneurs.
Traits Strong work ethic- Simon has strong ethic of work and he ensures that the work can be
done in a proper and systematic way. It is an significant trait to become a successful
entrepreneur. Manager is different from entrepreneurs because they don’t have strong
work ethic. Creativity- To become a successful and leading entrepreneur Simon minds create a
innovate thoughts and ideas that helps in making the best decisions for their enterprises.
This helps in making the more and more profits. Entrepreneurs are different from
managers as they are not creative in their business (McKeown, 2017).
Skills Networking- Creating a healthy network to the clients, investors is very helpful for the
successful enterprise. Simon has very successful in creating a effective network this helps
in becoming a successful entrepreneurs in the UK. Managers are different from
entrepreneurs as they cannot connect with the investors and outside because they are not
the owner of the business. Time management- Managing the time by making appropriate plans helps in making the
successful. Simon carefully plans their decisions and execute in many well mannered and
because of this he become a successful entrepreneurs the leading country UK. Managers
are different from entrepreneurs as they not manages the decisions without asking it to
the entrepreneurs.
Bobby Arora
8

Bobby was born on January 1972 and he is the trading director of the retail chain B&M.
To become a successful entrepreneur he has some characteristic, traits and skills. Some of these
are as follows.
Characteristics Take risks- To become successful entrepreneurs they need to take risk this will earn more
profits and revenues. Bobby take risk to make a more profits this helps in becoming the
best entrepreneur in the UK. Managers are different from entrepreneurs as they only take
decisions related to their employees and for completion the task. But the entrepreneurs
take risk for their business. Flexibility – Successful in the business an entrepreneur need to be take risk and willing to
adopt change to make products and services and delivers it to the customers. Bobby is
very flexible in taking the decisions and he is very willing to adopts change this helps in
becoming the successful entrepreneur in the world. Managers are different from
entrepreneurs as they don’t flexible in nature and adopts change (Ferreira, Fernandes and
Ratten, 2017).
Skills Curiosity – Successful entrepreneurs are very curious about to discover new problems,
reveal opportunities and process and innovation. Bobby do businesses out of the comfort
zone this will create curiosity to adapts new challenges and find new opportunities that
helps in earning more and more profits. Manager are not curious about to know the other
competitors in this way they are different from entrepreneurs. Communication- Effective transformation of information makes a person a successful
entrepreneur. Bobby communicates their thoughts to their employees, clients and
investors this helps in earning more income. Managers are different from entrepreneurs
as they not communicate to investors because they are the employees of the enterprise.
Traits Competitiveness- Increasing number of competition make entrepreneurs feels to do their
jobs in a very better way. Bobby is very competitive and face the competition very easily
this helps in increasing the revenues and make a billionaire in the country UK. Managers
are different from entrepreneurs as they are not competitive traits in their minds.
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 Confidence- To become a successful in the business entrepreneur is confident about their
goals and decisions making. Bobby is very confident to take their decisions this helps in
earning more profits. Managers are not confident as compare to entrepreneurs because
they are the employees of the organisation.
P6 Aspects of entrepreneurial personality reflect entrepreneurial motivation and mind-set
Ocean model of personality is also known as big five personality trait framework and five factor
model. This model comprises of various different characteristics or traits that influence
behaviour of individual to explore new things. These are certain forces which helpful in shaping
personality of person in a negative and positive manner. These components helps in analysing
and understanding nature and characteristics of an individual and to segment them into certain
personality types. These traits specify that how a person will going to act or behave in certain
situation. This big five dimension mechanism are useful in examine key traits that builds or
shape an individual’s personality. OCEAN represents Openness, Conscientiousness,
Extroversion, Agreeableness, Neuroticism (Ghio and et. al., 2015).
 Openness: this trait in people represents that they like to explore brand new things and
always try to experience something adventurous all time. Openness comprises
characteristics such as insightful, imaginative so on. Persons who are low in such trait are
highly consistent and cautious about their thought and living. Bobby and Simon both has
high in this trait as they like to explore and take risk in order to earn higher profits. Also,
they are flexible in nature change their strategies accordingly.
 Conscientiousness: persons who are high in this traits are efficient and organised in their
lives. As these people are highly conscious about being organised and maintain balance
in their work and personal lives. Individual who are low in such characteristics they are
tend to be easy going, relaxed and careless about everything. Bobby and Simon are self
motivated and has effective interpersonal skills.
 Extroversion: people who are high in such trait then their personality is tend to be
energetic and they like to meet new people as well as enjoy to take participation in
different activities with other individuals. On contrary, people who are low in this trait
like to be reserved and do not like to meet others. Bobby and Simon both are extrovert in
nature as they like to build strong network of people in order to expand their business.
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 Agreeableness: people who are high in such trait are highly friendly as well as
compassionate, cooperative with others. Such trait includes kindness, affectionate,
sympathetic. On contrary, individual who are low in this trait are more challenging and
detached from others. Both entrepreneurs have high characteristics of this as they are
highly cooperative as well as competitive.
 Neuroticism: people who are high in this trait are highly sensitive and nervous in nature.
Although this trait, it associated with emotional stability which connected with intensity
of negative emotions (Saleem, 2017). On other hand, people who are low in such
characteristics are highly secured and confident about doing things. Both entrepreneurs
have low trait as both are highly confident about their decisions and strategies.
LO4
P7 How background and experiences can hinder and foster entrepreneurship
Background and experiences both affect the minds and behaviour of an individual that helps
in motivating to become a entrepreneurs and create some blockages in becoming a
businessman.
Simon Arora- To become a successful entrepreneur in the UK. He inspire from his father
as they start their business to feed family. At this time Simon is young and went to their
father shop to help them. After some time he feels to open our own business and become a
billionaire of the country. In this nature culture affected the entrepreneurship as they not
provide a support conditions from the country and competitors. And his educations plays an
important role in this as he completed his education from Cambridge university this also
helps in managing the things and take important decisions t=relating to the business
enterprises.
Bobby Arora- Many rewards and risks faced by the Bobby in starting a business venture. To
became a successful and recognizable enterprise he make a initiative to change the society
thinking and create a long and vast network and flexible in their working to their preferences. To
become a successful he faces a shortage of funds because of losing the father business. And the
economic conditions of the country also affect the decisions in opening the retail chain B&M. In
this his personal characteristic, traits and skills help and motivating them to work hard and
11

become a successful in the business and after sometime became a billionaires of the world
(Burns and Dewhurst, 2016)
.
CONCLUSION
From the above explained project entrepreneurship and small business management helps in
increasing the economy and make a innovative and creative thoughts in the minds of an
individuals. In this report there are different types of entrepreneurial ventures who earn their
profits according to their needs and connected with their typologies. It also shows the
differentiate and similarities between them that will enhance the economy and growth of the
country. It also includes the different role of social and small business that helps in earning
the profits, while providing employment. It also notify and helps in learning the
entrepreneurial characteristic, traits and skills and how their personality helps in their mind
set to be a successful. At last it shows the entrepreneurs background and experience that
hinder and foster in their entrepreneurial journey.
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REFERENCES
Books and Journal
Antoncic, B. and et. al., 2015. The big five personality–entrepreneurship relationship: evidence
from S lovenia. Journal of Small Business Management. 53(3). pp.819-841.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Dana, L.P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Ferreira, J.J., Fernandes, C.I. and Ratten, V., 2017. International entrepreneurship research:
mapping and cognitive structures. International Journal of Entrepreneurship and Small
Business. 30(4). pp.545-566.
Ghio, N. and et. al., 2015. The emergence of the knowledge spillover theory of
entrepreneurship. Small Business Economics. 44(1). pp.1-18.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Lewis, K.V., 2015. Enacting entrepreneurship and leadership: A longitudinal exploration of
gendered identity work. Journal of Small Business Management. 53(3). pp.662-682.
McKeown, T., 2017. From entrepreneurship to small-to-medium enterprises: Exploring the
challenge and the opportunities. Journal of Management & Organization. 23(2). pp.165-
166.
Naldi, L., Achtenhagen, L. and Davidsson, P., 2015. International Corporate Entrepreneurship
among SME s: A Test of S tevenson's Notion of Entrepreneurial Management. Journal of
Small Business Management. 53(3). pp.780-800.
Piperopoulos, P. and Dimov, D., 2015. Burst bubbles or build steam? Entrepreneurship
education, entrepreneurial self‐efficacy, and entrepreneurial intentions. Journal of Small
Business Management. 53(4). pp.970-985.
Ratten, V. and Dana, L.P., 2015. Indigenous food entrepreneurship in australia: mark
olive'Australia's Jamie Oliver'and Indigiearth. International Journal of Entrepreneurship
and Small Business. 26(3). pp.265-279.
Saleem, M.A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of society and space. 8(1).
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