Entrepreneurship and Small Business Management

Unit 9 - Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Range of venture types that might be considered entrepreneurial...............................................3
Task 2...............................................................................................................................................5
Impact of small businesses on the economy................................................................................5
Task 3...............................................................................................................................................9
Key aspects of an entrepreneurial mindset..................................................................................9
Task 4.............................................................................................................................................11
Different environments that foster or hinder entrepreneurship.................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship can be defined as process of creating, organising, and running a
business enterprise taking all uncertainties in order to make profit. Entrepreneurs are those
individuals who start and manage business enterprise. This report will discuss about
entrepreneurship and small businesses and will involve analysis of small businesses on economy.
Discussion includes different types and typology of entrepreneurship and similarities and
differences among entrepreneurial ventures. Small businesses are those that operate at small
scale and will discuss different factors regarding small businesses. This report will discuss about
creativity, innovation and some different elements of small businesses. Later international aspect
of business start-ups will also be analysed in this report. Lastly, report will also discuss about key
aspects of entrepreneurial personality and what elements reflect their mindset. Along with this
impact of background and experience and fostering and hindering entrepreneurial personality
will also be discussed in this report. Regarding this case study of Issa Brothers will be
contextualised.
Task 1
Range of venture types that might be considered entrepreneurial
Entrepreneurship, entrepreneurial activity and enterprise
Differences between serial entrepreneurs, entrepreneurs and owner-managers
Serial entrepreneurs- Serial entrepreneurs are those individuals who start more than one
enterprise and subsequently start different enterprises and sell them (Yun and et.al., 2019). These
are those entrepreneurs who continuously come up with new ideas to start business.
Entrepreneurs- Entrepreneurs are those individuals who find unique idea and on the basis of
that they develop product and services having value for customers or market. Having that
product and service entrepreneurs start new venture and work on expansion of their enterprise.

Owner managers- Owner or managers are those people who start business and along with being
owner of the business they also manage business. Small business entrepreneurs are often owner-
manager.
Typology of entrepreneurship
Lifestyle and growth firms- Lifestyle firms can be defined as those firms or organisations that
are developed and managed for long term passive income. These firms and their owner does not
intend to maximise revenue their main aim is maintain owner’s income and personal
requirements. These firms are also based on passion of owner or entrepreneurs and these
entrepreneurs work on creating foundation for lifestyle of entrepreneurs. These are small
businesses and do not include much change for large profit.
Growth firms are those firms that are created by entrepreneurs with intention to expand
rapidly and create significant profit. Their focus is on innovation and goal is rapid expansion and
profit.
Entrepreneurship in a corporate or public sector context- Entrepreneurship in corporate or
public sector is concerned with innovation, ability of individual to take risk and involve
creativity (He and Ma, 2020). Entrepreneurship in public or corporate sector is known as
Intrapreneurship and it is considered as a way to become more profitable including imagination
of employees. Intrapreneurship is also important for companies to reinvent themselves and
improve performance. Intrapreneurship is also are individuals employed by organisation and
have traits like entrepreneurs and continuously innovate and their innovation contributes in
growth of the company.
Micro, small and medium-sized organisations- Micro business refers to those business
organisations that employ 5 or fewer employees. Small businesses are those businesses that
employ 50 people and have a turnover less than £6.5 and medium size organisations that
employs less than 250 employees and have a turnover less than £25.9 million. However
definition of EU is different and as per EU definition micro business refers to business with less
than 10 employee and turnover less than £2 million. Small business refers to business with less
than 50 employees and turnover is £10 million and medium business refers to business with less
than 250 employees and turnover less than £50 million.