Entrepreneurship and Small Business Management

This document discusses the scope, development, and growth of entrepreneurial ventures. It also explores the impact of small businesses on the economy and the characteristics and traits of successful entrepreneurs. Additionally, it analyzes how background and experience influence entrepreneurship.

Unit 9- Entrepreneurship
and Small Business
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Examining the scope, development and growth of a diverse range of entrepreneurial ventures
................................................................................................................................................1
TASK 2............................................................................................................................................5
Presenting how small business have an impact upon economy.............................................5
TASK 3............................................................................................................................................8
Characteristics and traits of successful entrepreneur..............................................................8
Entrepreneurial personality reflecting entrepreneurial motivation.........................................9
TASK 4..........................................................................................................................................10
Background and experience hindering or fostering entrepreneurship..................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is an activity that is used to set up a business by considering all
financial risk with a hope to earn profit. Whereas, an entrepreneur is an individual who creates
new business and provide direction. Similarly, the current study will shed a light upon
importance of entrepreneurship within business by highlighting entrepreneur’s skills and
mindset. The study will identify different types of ventures along with its typologies and
describe similarities and differences between the same. Further, the report will critically evaluate
how small business creates an impact on different level of economy. Also, analyze characteristic
traits, skills and motivational drivers of Issa Brothers and then evaluate how background and
experience influences entrepreneur’s life in both positive and negative manner.
TASK 1
Examining the scope, development and growth of a diverse range of entrepreneurial ventures
Entrepreneurship is the ability that helps to organize and run a business entity in order to
make profit by considering any uncertainties. During a process, entrepreneur assist to convert an
opportunity into a workable by applying their time, money and skills. As per the views of Ridha
and Wahyu (2017) there are different entrepreneurial ventures which are as mentioned below:
Any established company: This type of business has at least 500 employees who
generate revenue and profit for the company as well as its shareholder. The company run under
this venture ensure that it comply with defined rules and regulations because it has to sustained
the brand image at international level. For example, Tesco is an established company since 1912
and now it operates in more than 30 countries with 6800 stores. It has more than 450000
employees and its main aim is to offer good quality of products to enhance the goodwill in
market.
Small size social venture: There are majority of a small business in UK because people
interested in this venture and they are likely to make profit that supports their family (Dabić and
et.al., 2020). So, they are not seeking for large scale profit but offer services for good cause i.e.
welfare of a society. It is an independent owned firms who wants to grow into long term
business. For example, Funeral care who makes complete arrangement of a funeral especially to
those who do not have families.
Large size social venture: This type of entrepreneurial venture sustaining through
innovation and offered new products/services by identify the need of market and customers. The
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business run under this venture provide services in order to solve social needs and problems at
large level. Hence, their only goal is to make world a better place and not to acquire wealth. For
instance, NHS who have experts, professionals, and are ready to serve people. It also has a brand
image because of having many units at different countries.
High growth social venture: This type of venture prioritizes offering goods socially
along with high business success. Company run under this venture also focused upon social
innovation and offered product by identify the need of customers (Hsieh and Wu, 2019). For
example, Google and Facebook are the top high growth companies who provide services to
entire world and entrepreneur keep focusing upon growth factors that assist to take a business at
further level of success.
Typologies of business venture Survival Firms: Majority of small scale firms are considered as a survival firm because
of saving cash, contrast to growth mode and laying off employees. Funeral Care fall
under this category because it is a small business and it faces struggle to survive in this
competitive era. Lifestyle firms: This type of business provide their owners an opportunity to pursue a
specific lifestyle. The entrepreneur under this category wants to create a business
because they are passionate about it and willing to change their entity as per market.
Tesco is an example where entrepreneurs keep adding new products by identify the
demand of customers and market (Fitz-Koch and et.al., 2018). Aggressive growth firms: This type of business seeks capital gains by investing in the
shares of growth. This in turn assist to demonstrate high growth potential along with
greater risk. For example, Facebook and Google who keep investing their shares with an
aim to gain high profit. Social enterprise: This typology has a specific social objectives and also maximize the
profit by providing best quality of services to the society (Malecki, 2018). Similarly,
NHS is also offered its services to patients with low prices because their main aim is to
serve for the welfare of a society.
Similarities between business venture
All type of business ventures has similarity in the context of creative idea such that all
business presents their products and services in an innovative manner so that they meet the need
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of customers. Such that Google keep adding new features in its application whereas, NHS
implement new technologies in order to serve their patients effectively. Apart from this, creating
a brand name is another common aspect between all ventures because they develop business to
offer wide range of products with an aim to sustain brand image (Dias, Rodrigues and Ferreira,
2019). Such that large, small, high growth and established companies are work with a common
objective i.e. to reach a business at international or global level and for that it offered range of
products and services by identifying the need.
In addition to this, all the ventures get funds from some investors whether it is a large or
small business. Also, constant innovation is another similarity between ventures because to
survive in this competitive era, there is a need to offered innovative products that grab attention
of many customers. For example, NHS converts its manual system into computerized in order to
save time, whereas, Tesco is looking to invest upon robotics due to cope up with pandemic
crisis. On the other side, Funeral Care start introducing its own website for emergency booking
and Google keep adding new features in its online site to draw attention of many users. Hence, it
is clearly analyzed that there are many similarities between all business ventures and among all
businesses are keep working cater services or products that assist to meet the demand of
customers.
Difference between serial, entrepreneurs and owner managers
Serial entrepreneur has an ability to make decision from starting ventures whereas
entrepreneurs assists company to reach at further level of success. They have strong vision and
leadership qualities that helps them to make decision for the betterment of a firm. On the other
side, owner manager are those employees who hold jobs within incorporated enterprise and with
proper support from team members, they execute the plans effectually.
Difference between entrepreneurial ventures
Survival Life style Aggressive
growth
Social
Enterprise
Managerial
Focus
The main focus is
to develop
strategies in order
to improve its
operation.
Manager in this
typology focused
upon both internal
and external
factors that cause
Managerial focus
upon this typology
is to develop
strategies in order
to meet the
In this, managers
focus on
delegation of task
and make daily
decision, along
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opposite impact
upon business and
then develop
strategies to
improve the same.
company's plan
and mission.
Along with this,
company evaluate
performance of
employees
with setting
business strategy.
Managerial
Style
Opt autocratic
style because
only one person
is liable for entire
operations
Manager under
this venture uses
democratic style in
order to get views
of all employees
before making any
decision (Dwivedi
and
Weerawardena,
2018).
Managerial style
for this venture is
depend upon
situation, such that
they opt style by
analyzing the
circumstances.
Manager uses
transformational
style in which
they work in a
team to attain the
define aim.
Technology
investment
Did not focused
upon such thing
Every year,
specific budget is
defined to comply
with advance
technology
Biggest amount is
invested upon
technology
because it assist to
enhance
company's growth.
Some amount is
invested to adhere
with advance
techniques
Annual growth
rate
The annual
growth rate is up
to 30% among
new firms
The growth rate is
varies from 20 to
25%
These firm's
annual growth is
in between 15 to
45%.
Social enterprises
growth rate is up
to 20 to 40%
(Gupta and et.al.,
2020).
Exit Approach Shut down Sell the business
in open market
Keep business in
family
Liquidation
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TASK 2
Presenting how small business have an impact upon economy
Micro business is operating at very small scale and to run this type of business,
entrepreneur invests very small amount, but the profit margin of this business is small as
compared to others. Whereas, small business is defined as a privately owned corporation or sole
trader which has a fewer employees and less annual revenue (Browder, Aldrich and Bradley,
2019). This business directly and indirectly assists to improve the economy of a country by
providing many jobs to the individuals. The current statistics shows that there were 5.9 million
small business in 2020 and by comparing the same with 2019, it is analyzed that there is 1.9%
growth in private sector business.
Micro and small business contribute to the economy in many ways which includes
employment opportunities, assets, growth and turnover etc. Around half of the turnover in UK is
occupied by small business and that is why, 3/5th of population are engaged within this business.
This reflect that it provides many employment opportunities to individuals. Apart from this
study indicates that total employment in small and micro business was 16.8 million i.e. 61% of
the total population and the turnover was estimated £2.3 trillion (which is 52% of total). Hence,
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Illustration 1: % of SME

it is examined that due to increase in small business, the economy of a country is also affected in
positive manner (UK Small business statistics, 2021). Apart from this, between 2019 and 2020
the total business population grew by 112998 i.e. approx. +1.9% and this in turn provide range
of employment opportunities to the people. Also, in 2020 around 6 million private sector
business were in UK in which 1.4 million business had employees, whereas 4.6 million had no
employees. This reflect that majority of businesses needs employees in order to run their
business in smooth manner that assist to improve employment opportunities.
Thus number of industries are increases day by day which shows that there are number
of opportunities for younger people. Small and start-up business have a great impact upon UK
economy as compared to medium size business because around 2.6 million private sector
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Illustration 2: Contribution of different sized business to total population, employment and
turnover

business are registered for VAT and this contribute to enhance the economy in positive manner.
Hence, due to frequently developed of range of small business, which helps to provide range of
innovative ideas and increases the production rate that helps to enhance the social economy as
well (Ratten and Usmanij, 2020). In the era of competition, entrepreneurs enhance their skills
and improve their carer graphs by offering innovative range of products to their customers
without considering about profit. Hence, most of the small and start up business are actually
established to meet the social purpose and improve the local lives of a people as well. In this,
company involve diverse range of people so that they share their views in order to improve the
overall performance of a company. This in turn contribute their best to raise social economy and
benefit society as well.
Definition of creativity and innovation
Creativity is the ability to develop and express own ideas in new ways, whereas
innovation is a process of turning a new concept into a commercial success. It is all about
delivering a creative idea into an innovation. There are many methods through which business
can protect their IP which are as mentioned:
Patent: It is all about a disclosure of a work in details and maintain the trade secret
protection in same work. It is actually used in novel and it gives a 20-year monopoly on selling,
using and making importing an invention.
Trademark: It is a kind of word and symbol which represent a product to determine and
distinguished it from other products within a market place. For that, registration symbol may
also use when that helps to differentiate it from others.
Copyright: It is another method through which an owner can modify own work and
distribute or perform the work publicly, but no one has a right to make changes in their work
because of having Intellectual property i.e. copyright
TASK 3
Characteristics and traits of successful entrepreneur
For an entrepreneur to be successful it is of much importance that they inherit some of
the traits and characteristics (Anggadwita and et.al., 2017). These traits and characteristics assist
the person in managing their entrepreneurial venture to a great extent. The business exists in
external environment and there are many changes which takes place. Hence, for this it is very
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essential for the entrepreneurs to inherit different types of skills and traits for effective working.
The different traits and characteristic of Zuber and Mohsin Issa are as follows- Creativity- this is the major characteristic which entrepreneur need to possess in order to
manage their entrepreneurial venture in a better and effective manner. This is possessed
by Issa brothers as they work have worked in better and effective manner. This
characteristic of entrepreneur assisted them in thinking out of the box at time of any
problem or issue. Vision- this is another important characteristic of Issa brothers as with help of clear
vision they were able to manage the business EG in effective manner. With clear vision
both the brother manages to own the 5200 petrol station on their own.
 Risk tolerance- while managing the business it is mandatory that the person will involve
the risk taking capacity. There are many different changes which takes place in the
external environment and these need to be adapted by business. Issa brothers also have a
high risk taking capacity as they saw an opportunity in buying the supermarket.
Traits of successful entrepreneur Motivation- this is the major trait which needs to be possessed by entrepreneur for
getting successful. For operating in external environment and managing entrepreneurial
venture motivation is the key to management (Tkachenko, Kuzior and Kwilinski, 2019).
Issa brother has the trait of motivation and because of this only they are able to manage
the workforce of 33000 employees in their workplace.
 Persistence- this is a trait which involves the act of doing a thing again and again till the
time it is not completed. This is also a good trait which is inherited by Issa brothers and
this motivates them to complete the work they have to do in any condition. Hence, this
result in completion of the task in effective and successful manner.
In the end it can be stated that the inheritance of different characteristics and traits is very much
important for the entrepreneur to be successful (Ridha and Wahyu, 2017). But these traits and
characteristics are differentiated from that of the managers. The major difference is that the
entrepreneur is the person who creates the enterprise whereas manager is the one who is
responsible for administering and managing company.
Further it can also be stated that the entrepreneur is born
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Entrepreneurial personality reflecting entrepreneurial motivation
The entrepreneurial mind set is being defined as some set of knowledge, beliefs which
directs or drives entrepreneurial behaviour. There are two different types of mind set that is fixed
and growth mind set. The fixed mind set involves the qualities which are inborn and cannot be
changed. On the other side growth mind set is the one which states that capabilities and skills
can be developed and improved by working. Entrepreneurial mind set is of importance for an
entrepreneur as this guide the person in dealing with the development of skills and attributes.
The personality involves a combination of different qualities and characteristics of a
person which makes them distinctive from others. The personality of an entrepreneur is being
reflected by entrepreneurial motivation of the person. This is particularly because of the reason
that if entrepreneur will be motivated then this will be reflected by their personality. The
personality of Issa brothers is also reflected by their personality and can be explained below with
help of OCEAN model. Openness- this is the personality which relates to openness to experience that is
willingness of person to try new and different things. This personality aspect involves a
person to have ability to think out of the box. In case a person is high to openness then
they are very creative, open to any new change, imaginative which is there in case of Issa
brothers. They both are very creative and unconventional and try to bring new changes in
their business (Vladasel and et.al., 2020). Conscientiousness- this aspect of personality is described as the tendency of person to
control their behaviour and act in socially acceptable manner. This assist the person in
regulating their impulse behaviour in the direction of attaining their goals in successful
manner. Both Issa brothers are high in conscientiousness as they are competent and
organized and have a clear vision that what work they have to accomplish. Extraversion- this is a trait of personality in respect to intensity or tendency of a person
at time of interacting with environment or other people within environment. A person
with high extraversion personality is more energised and social and also enjoys to
become centre of attraction. On the other side a person who is low in extraversion
personality then they are less social and shy. Both Issa brothers are low in extraversion as
they are more shy and calm and due to this they even didn’t claim their award on stage
during an award ceremony.
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 Agreeableness- this is another trait in big five model personality trait which relates to the
fact that how a person tends to treat their relation with others. A person high in
agreeableness have characteristics like trust, compliance, modesty, altruism. On the other
side if a person is low in agreeableness then their personality will reflect being stubborn,
unsympathetic, show off and other similar characteristics. In case of Issa brothers they
are high in agreeableness and this is because they are capable of managing good relation
with other people. This characteristic of personality can be seen through the fact that
both hake managed 33000 employees within the company with their good behaviour and
management.
 Neuroticism- this is the last personality trait as per the big five personality model which
related to overall emotional stability of the person. This personality relates to the fact that
how a person is going to interpret the happening nearby them (The big five personality
traits, 2020). A person high in neuroticism is angrier, vulnerable, anxious. On the other
side if the person is low in neuroticism then they will be more calm, confident and
resilient. In the present case of Issa brothers, they are low to neuroticism as they are calm
and confident relating to their working.
TASK 4
Background and experience hindering or fostering entrepreneurship
For becoming a successful entrepreneur, it is very much important that the person is
motivated and possess all the skills and characteristics. In addition to this for an entrepreneur the
background and experience of them affects the level of entrepreneurship to a great extent. The
reason underlying this fact is that if background of a person is not good then it might be possible
that they may face many problem and issues. In addition to this the experience of a person also
motivates or hinders a person from becoming a successful entrepreneur (Kuratko, 2017).
Mohsin Issa is a British billionaire and the founder of Euro Garages which is a chain of
petrol of filling station operating in Europe. He was born in 1971 in Blackburn and his parent
come from India in 1960. Mohsin got his education at Witton Park high school and whole
childhood was spent in a terraced house in Blackburn. Along with this Zuber Issa was also born
in Blackburn in 1972 and got education from same school from which Mohsin was educated.
With this it can be seen that the background of the person affects the level of entrepreneurship.
This is particularly because of the reason that their father worked in a textile industry and used
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to live a simple life. But both the brother wanted to do something good and effective and
because of this they first took a lease on their garage and saved money in order to buy their first
petrol pump. This incident states that even both the brothers were not having a good financial
background but then also they managed to work and build their own petrol stations.
Along with this the experience of a person also fosters and hinder the growth of
entrepreneurship. Both the brothers have a good experience and because of this they were able to
manage the business in successful manner. Issa brother are co- founder of Euro Garages and has
acquired a lot of petrol filling station and this reflects that the working experience fosters the
entrepreneurship. This is particularly because of the reason that if experience of person will be
good then this will motivate the person to build on more working. With their experience Issa
brothers managed to open around 6000 stores and also purchased ASDA store.
This reflects that the background and experience of person motivates them to become an
effective entrepreneur. This might be because of the reason that person is not having something
and in order to find that thing an entrepreneurial venture is being created (Packard, 2017).
In addition to this another example of entrepreneur that is James Dyson who developed
as an entrepreneur by their background and experiment. While residing at his home Dyson
noticed that the vacuum cleaner is not working properly and he witnessed the problem faced by
his mother. After that Dyson tried and experimented and with a lot of hard work developed a
new vacuum cleaner with cyclonic separation. This also reflects that the person can develop
entrepreneurship which their background and experience.
Risk and reward of business start- ups
Risk
The major risk associated with the business start- up involve the following-
 Market risk is the biggest risk as there are many different types of changes taking place
in the market. This affect the business start- up to a great extent.
 Financial risk is another type of risk which affects the business to a great extent. This is
particularly because of the reason that when the business is started the finance is the most
essential requirement of the business.
Rewards
The major reward for the business start- up are as follows-
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 The most important reward for the business start- up is the job satisfaction to the owner.
This is particularly because of the reason that when the person starts their business then it
satisfies them to a great extent.
 The another reward for the business start- up is that the person can become their own
boos as they have started the business and not have to follow any other person.
CONCLUSION
From the above whole study, it is summarized that entrepreneurship is referred to as the
setting up of business by a person involving all the financial risk on their own. The current
report evaluated the different types of the entrepreneurial venture like small size, large size
social venture. In addition to this, typology of business venture was also outlined like lifestyle
firm, survival, growth and others along with their differences and similarities. Moreover, the
report evaluated the importance of small business and start- ups in growth of social economy.
This importance is like increase in employment opportunity, development of economy and many
others. Along with this different trait and characteristic of entrepreneurs were highlighted like
creativity, persistence, motivation and others. Further with help of OCEAN model it was
witnessed that personality affects the mind set of entrepreneur to a great extent. In the end it was
evaluated that Issa brothers were also developed as an entrepreneur because of their background
and experience.
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REFERENCES
Books and Journals
Anggadwita, G. and et.al., 2017. Socio-cultural environments and emerging economy
entrepreneurship. Journal of Entrepreneurship in Emerging Economies.
Browder, R. E., Aldrich, H. E. and Bradley, S. W., 2019. The emergence of the maker
movement: Implications for entrepreneurship research. Journal of Business Venturing.
34(3). pp.459-476.
Dabić, M. and et.al., 2020. Immigrant entrepreneurship: A review and research agenda. Journal
of Business Research. 113. pp.25-38.
Dias, C. S., Rodrigues, R. G. and Ferreira, J. J., 2019. What's new in the research on agricultural
entrepreneurship?. Journal of rural studies. 65. pp.99-115.
Dwivedi, A. and Weerawardena, J., 2018. Conceptualizing and operationalizing the social
entrepreneurship construct. Journal of Business research. 86. pp.32-40.
Fitz-Koch, S. and et.al., 2018. Entrepreneurship in the agricultural sector: A literature review
and future research opportunities. Entrepreneurship Theory and Practice. 42(1). pp.129-
166.
Gupta, P. and et.al., 2020. Social entrepreneurship research: A review and future research
agenda. Journal of Business Research.
Hsieh, Y.J. and Wu, Y.J., 2019. Entrepreneurship through the platform strategy in the digital era:
Insights and research opportunities. Computers in Human Behavior, 95, pp.315-323.
Kuratko, D. F., 2017. Corporate entrepreneurship 2.0: research development and future
directions. Foundations and Trends® in Entrepreneurship. 13(6). pp.441-490.
Malecki, E.J., 2018. Entrepreneurship and entrepreneurial ecosystems. Geography
compass. 12(3). p.e12359.
Packard, M. D., 2017. Where did interpretivism go in the theory of entrepreneurship?. Journal of
Business Venturing. 32(5). pp.536-549.
Ratten, V. and Usmanij, P., 2020. Entrepreneurship education: Time for a change in research
direction?. The International Journal of Management Education, p.100367.
Ridha, R. N. and Wahyu, B. P., 2017. Entrepreneurship intention in agricultural sector of young
generation in Indonesia. Asia pacific journal of innovation and entrepreneurship.
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Tkachenko, V., Kuzior, A. and Kwilinski, A., 2019. Introduction of artificial intelligence tools
into the training methods of entrepreneurship activities. Journal of Entrepreneurship
Education. 22(6). pp.1-10.
Vladasel, T. and et.al., 2020. On the origins of entrepreneurship: Evidence from sibling
correlations. Journal of business venturing, p.106017.
Online
The big five personality traits. 2020. [Online]. Available through: <
https://www.simplypsychology.org/big-five-personality.html>
UK Small business statistics. 2021. [Online]. Available through: <https://www.fsb.org.uk/uk-
small-business-statistics.html>.
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