Entrepreneurship and Small Business Management

This report covers the different types of entrepreneurial ventures, their relation to the typology of entrepreneurship, the impact of micro and small businesses on the economy, and the traits and skills of successful entrepreneurs. It also discusses the importance of small businesses and startups to the growth of the social economy. Get study material and solved assignments on Entrepreneurship and Small Business Management at Desklib.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship..........................................................................................................................3
P 2 similarities and differences between these ventures..............................................................4
LO 2.................................................................................................................................................5
P 3 Impact of micro and small businesses that has impact on the economy...............................5
P 4 Explain the importance of small businesses and business starts-ups to the growth of social
economy.......................................................................................................................................6
LO 3.................................................................................................................................................7
P 5 the characteristic traits and skills of successful entrepreneurs that differentiate them from
other business managers..............................................................................................................7
P 6 aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset. .9
LO 4...............................................................................................................................................10
P 7 background and experience with hindrance of entrepreneurship........................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is the process of designing, launching and running a new business,
which is often initially a small business. The people who create these businesses are called
entrepreneur. Small business management is a process entrepreneurs use when running their
business operations. Small business management often requires entrepreneurs to have a wide
variety of knowledge or understanding relating to business topics. This report covers questions
such as types of entrepreneurs and link with typology, differentiation between entrepreneurial
ventures and small business, personality and motivational aspects of entrepreneur, characteristics
and their skills and how a start up or small scale enterprise help the economy.
LO 1
Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship
Small business entrepreneurship-
Most of the businesses operating and managing their business in market of UK maintains
their operations on small scale. If it is determined on a scale through which it can be measured
then 80 per cent of companies there operate on this level. If they are evaluated on the basis of
profit then it turns out to be small. Their profits earned are on that scale through which they are
able to manage their routine activities and take care the expenses of their family. Business of this
nature have to face difficulty in gathering attention of venture capitalist. Whenever they have to
raise money they have to ask from their personal relations such as friends or families (Liu, Qian
and Haynes, 2020).
Scalable startup Entrepreneurship-
This business is started by entrepreneurs when he has full faith on his mechanism and
approaches which relates to this form of entrepreneurship. In order to raise funds they seek
venture capitalists and recruit those whom they can work with. All the work is done by best in
the field and experienced employees. Although risk in this nature of business is high this is why
there is less competition. Typology of this aspect matches with scalable typology as both of them
finds for repeatable business.

Large Company Entrepreneurship-
Companies such as Google, Microsoft, Tesla etc is relatable to this aspect of business.
Focus of this management is on working with innovative measures and launch products that
helps them to sustain their market. Growth achieved by these businesses is of aggressive nature
as sometimes they tend to buy out share of other companies in order to reduce the competition in
their line of business. Their management makes sure that resources are being used at optimum
level and there is no issue of insufficiency in achieving the goal.
Social Entrepreneurship-
This level of entrepreneurship is concerned with doing something good or beneficial out
of the need for earning profits or establishing their name in market. Their motive is to help
underprivileged people so that they can make their future better. Typology of serial
entrepreneurship matches with this form of entrepreneurship as both of the entrepreneurs
maintains a tight discipline which is stable and they are creative in order to make way through
their goals.
Typologies
There are different typologies available to business and it is finalized on the basis of
environment they deal and on the basis of their scale of operations.
Lifestyle Typology-
This form is finalized by those who maintains their operations on low platform because
there is only one person to look after and that is the owner. It is their determination towards work
that helps them to keep it functional in this tough competitive market.
Scalable Typology-
This form is preferred by large scale organizations who has no ulterior motive other than
generating profits. They keep on exploring different areas so that they can find potential markets
or technological improvement through which they can bring innovation.

Similarities and differences between these ventures
Attributes Small Scalable Social Large
Objective This sector of
business operates
on a scale that is
small and limited
to achieve only a
specific share of
market (Urbano,
and Aparicio,
2019).
These model of
business have to
work with unique
approach and
bring new
methods to work
in repeated line
of businesses.
Motive of these
companies to
serve in this
market is for
making society a
better place.
Motive and
purpose of these
companies is
only to increase
their scale of
profits and
achieve more
growth in
different
markets.
Financial Source This form of
business raises
money from their
personal relatives
or friends.
They consider
venture
capitalists as an
option when they
want to raise
money for their
business.
They seek
charitable trust or
donation from
people in order
to help poor or
underprivileged
people (Linton
and Solomon,
2017).
They have every
option available
to them at
anytime because
of their strengths
and position in
the market.
banks, investors
or retained
earnings are their
potential source.
Organizational
Structure
Structures of
these businesses
are flat.
Structures of
these businesses
are different and
tall which does
not allow
employee to raise
objection in any
situation.
Their structure
solely depends
on decisions
taken by
management.
These large scale
business follows
a pattern of
structure that is
functional.

Similarities-
If similarities are assessed then it will come to one most important thing and that is
maintaining their cash flow and raise funds from market. This is necessary if they want to
survive in market for long and fight against the competition. This can help them to maintain their
performance up to the required marks. Sometimes because of this they are not able to earn
substantial profits. There are different factors which affect the operations of business as no one
can predict the threats of external environment and this creates difficulty for them to either
establish their base or sustain their operations (Turgunpulatovich and Bulturbayevich, 2020).
LO 2
Impact of micro and small businesses that has impact on the economy
There is a huge impact of inflation and level of income of consumers as they are
interrelated and affects the business of companies. If inflation increases level of income must
match that otherwise their purchasing power will not decrease. Most of the time it is business
operating on a small scale that suffers from this, also businesses dealing in line of export have to
look after factors which is concerned with value of money as their business depends on that.
Currently the market of UK has not been observing the expected rate of growth due to factors
and decisions such as Brexit and Covid-19. It is important that their government supports small
business as they play a major role in boosting their economy (Nassif, Armando and Lopes La
Falce, 2020).
They evaluate it by turnover of companies as it helps them to assess their economic
power. In the past few years it has been assessed that small and medium scale businesses have
contributed around 2 trillion Euros in market and it was 52 per cent of overall rate of turnover
and contribution made by private sector. Other than that it has been observed that these scales of
businesses have been able to manage in generating more employment than companies dealing on
large scale. If its assessed numerically they have provided jobs to around 16.3 million people
which is believed to be 60 per cent of employment generation in UK. With the help of this it has
been come to knowledge that businesses operating on small and medium scale have been

successful in achieving growth in market. This has helped them gain more confidence and
because of that many of them has taken the decision to expand the scale of their operations.
Contributions made by them have helped the economy of UK a lot and it has helped the health
related facilities to grow there.
Government of UK has finalized the decision of funding these scale of businesses by
more than 700 million Euros which will be for research and development so that they can find
more suitable ways to satisfy the needs of their customers and achieve growth in their respective
markets. They have also taken the decision that if businesses are successful then they will get
rewards through which they can explore more innovative measures and offer them to public at
reasonable rates (Lechat and Torrès, 2017).
Explain the importance of small businesses and business starts-ups to the growth of social
economy
Business who operate and keeps their operations small is done by mostly people who are
young and new entrepreneurs in market and they provide facilities for communities. This is a
risky measure as they have to maintain a small business and they have less experience which
puts them at high risk to market forces.
Creating Employment-
After the analysis of market it was proven that most jobs created in private sector was by
small businesses. Even at the time of recession in markets they didn’t hold back they provided
opportunities to fresh and new talents and they make sure that by working with them as part of
their team they feel satisfied. They try to impose less pressure on employees so that they can
maintain quality of work. This is also done as by providing them some autonomy they can make
some decisions and that will motivate them to contribute more in order to achieve more.
Local Improvement-
Businesses that pertain to small scale manage their operations in areas that are local so
that they can increase their profits and maintain interdependence in finances. This aspect is
related with circulation that is the money spent by people on store owners goes out to be paid as
the salaries of employees and in return that is again circulated in market by buying goods that are
important to them. it is important to understand for them that more they help their community

more they will be able to achieve growth. This will help them when any specific business is not
able to meet its needs and demands then by the help of community they can easily pass that
period or situation off (Liguori, El Tarabishy and Passerini, 2021).
Autonomy and Independence-
Small business have a pretty tight grasp on local markets as large scale businesses have
their focus on trends that are new by which they can achieve their goals. Small businesses follow
a tradition approach to compete them so that their profits scale remain substantial. Any nature of
business has to work under the same set of protocols (Laudano, Marzi and Caputo, 2018).
These are the changes and positive impacts on economy and contribution made by small
businesses and start ups which is helping the GDP to evolve and with the help of that people are
able to improve their standard of living.
LO 3
The characteristic traits and skills of successful entrepreneurs that differentiate them from other
business managers.
Traits and Skills of J.K. Rowling-
Traits-
Motivation-
It is their level of motivation and drivers they use which helps them to remain their focus
on attaining the goal that makes them successful. This happens because of faith they have on
their work and the aspect of motivation. Their attitude towards work sets out to be positive which
helps them to not give up on it until they complete it. For instance- she faced many problems
because of which she had to overcome depressive phase but by putting her efforts in work with
focused determination she was able to accomplish it.
Skills-
Flexibility-

Most of the entrepreneurs are flexible as their line of work demands them to be because
they have to adapt changes in their work constantly. Other than this they take sessions in which
they involve members of team to go through their opinion and make changes in their work if
they are convinced that its right for them. for instance- J.K. Rowling was on deadline and she
had no idea about the end of her novel series and then she had to take suggestion from other
people which resulted in success (Kunaka and Moos, 2019).
Traits and Skills of Richard Branson-
Traits-
Creativity-
One of the most important trait of entrepreneurs is to work with a creative mindset as
they are known for bringing new things or methods in market. Main focus is to work with
measures that are innovative. For instance- Richard Branson is known for his creativity and that
is considered as the reason why his investment strategies turns out to be successful.
Skills-
Vision-
It is important for them to plan out their work as per the needs and demands of people. It
must be on that level through which they remain successful even in future. For example- Richard
Branson turned out to be very sharp in terms of predicting measures and because of this factor he
was able to invest in different companies by getting returns that were successful.
aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset
With the help of big 5 trait model mindset of entrepreneurs can be easily assessed.
Openness-
This aspect describes the qualities that are possessed by entrepreneurs like predicting the
outcome of situation, insights and the power they yield in imagining things. For example- it was
the imagination power of J.K. Rowling that bought Harry Potter into a character and it all
happened when she missed her train in London. If they are high on this trait then they will work

with creative and innovative ideas that are new and if they are low on this trait then they won’t
be termed as creative (Ndoro, Louw and Kanyangale, 2019).
Conscientiousness-
This aspect looks over their habits in professionalism and their behavior which must be
impulsive so it can help to make way for goals. It was the behavior of Richard Branson that
helped him to think and achieve goals continuously which was beneficial for him. He worked on
his project thoroughly and made every decision after preparing everything so that even if
anything goes wrong he can work with solution of that.
Extraversion-
Another name for this aspect is extroversion. These are the activities and attributes which
brings them in line of social activities and contributing for benefit of other people. For instance
J.K. Rowling donated half of what she earned and because of that she lost her title and position
of being a billionaire. It was all because she donated that much amount in these social activities.
her nature is extrovert and she never feels shy in revealing or sharing anything (Jalilov, Annayev
and Mukhammedov, 2018).
Agreeableness-
This trait states that entrepreneur have to agree with someone else’s point of view. For
example- J.K. Rowling faced many difficulties when she was not able to finalize the end for her
novel and she was open to suggestions which helped her in coming up with the end of that. Even
Richard Branson is open to suggestions from experts in his field as he invests in different areas
which is risky and that is why he considers this action.
Neuroticism-
This trait states that helps to recognize the state of mind in terms of happy or sad.
Entrepreneurs who are believed to be high on this aspect face issues of not able to make a
decision or remain dissatisfied. Although if they are low then they will be able to take decisions
that are stable. If situation of J.K. Rowling is assessed it tells that she was stable because she
faced many difficulties in life and even then she was able to overcome everything.

LO 4
Background and experience with hindrance of entrepreneurship
Richard Branson
Richard Branson is a British citizen and in 1970 he founded Virgin Company with the
help of that he extended his investments in more than 400 companies. When he was 16 he started
his first business as he dropped school. His first business was of mail order then he started chain
of record stores under the name Virgin when it became successful he changed the name to Virgin
Megastores. Later he started his own airlines by Virgin Atlantic and expanded his other
businesses. In his cycle and different stages of performance he met different entrepreneurs and
with their knowledge and his analysis he understood that everyone works with a different field of
approach. In 2016 he attained the position of billionaire and earned many awards for businesses
that were successful (Bruce, Gurley-Calvez and Norwood, 2020).
J.K. Rowling-
She is a multi talented artist and she made her name as author, producer, on screen writer
and producer of television series. She is known for her novel series Harry Potter as it was her
best work. That book sold around 500 million copies which made a record of bestselling book.
She won many awards for her work on that. This is why she was chosen for to write script for its
movies and she made the decision of investing her money. There was a dark period in her life as
her husband divorced her and she had to fight poverty while raising her child. She was the first
author to become a billionaire but she donated half of that in social charities and contributions
for the benefit of poor. Even right now her net worth is around £600 million which makes her in
the list of top 200 richest people in UK. £ 1 million was donated by her to labor party. This
created a impact on people and she was chosen to be the president of Gingerbread charity
(Baker, Kumar and Pandey, 2021).
CONCLUSION
From the above studies it has been assessed that it is important for entrepreneurs to predict
changes in market so that they can work up with upcoming trends and satisfy the needs of their
customers and for that they will have to work with creative and innovative methods. It is

important that they remain open to suggestions and seek help when they are stuck on something
so that problem can be solved. Small companies in market of UK have been proven more
profitable as they are contributing more in terms of employment and GDP which is helping to
boost the economy. This is why they have support of government. It is important for
entrepreneurs to achieve success and for that they have to implement drivers of motivation for
them and their employees so that they don’t give up and keep contributing until they have
achieved success. They need to understand that it is not necessary to be rich in order to be
successful. It is important that entrepreneurs improve their skills and traits and add more to it so
that they can achieve their goals. Also they need to have employees that possess the same level
of talent and skills so by working together they can even turn small business into large one.
REFERENCES
Books and Journal
Baker, H.K., Kumar, S. and Pandey, N., 2021. Thirty years of Small Business Economics: A
bibliometric overview. Small Business Economics, 56(1), pp.487-517.
Bruce, D., Gurley-Calvez, T.J. and Norwood, A., 2020. Taxes and entrepreneurship: A literature
review and research agenda. Foundations and Trends® in Entrepreneurship, 16(5), pp.393-
443.
Jalilov, S.Z.U., Annayev, A.A. and Mukhammedov, M.M., 2018. SMALL BUSINESS AND
PRIVATE ENTREPRENEURSHIP-GUARANTEE OF SOCIAL AND POLITICAL
STABILITY. In International Scientific and Practical Conference World science (Vol. 4,
No. 1, pp. 4-6). ROST.
Kunaka, C. and Moos, M., 2019. Evaluating mentoring outcomes from the perspective of
entrepreneurs and small business owners.

Laudano, M.C., Marzi, G. and Caputo, A., 2018. A decade of the International Journal of
Entrepreneurship and Small Business: a bibliometric analysis. International Journal of
Entrepreneurship and Small Business, 33(2), pp.289-314.
Lechat, T. and Torrès, O., 2017. Stressors and satisfactors in entrepreneurial activity: an event-
based, mixed methods study predicting small business owners' health. International Journal
of Entrepreneurship and Small Business, 32(4), pp.537-569.
Liguori, E.W., El Tarabishy, A. and Passerini, K., 2021. Publishing entrepreneurship research:
Strategies for success distilled from a review of over 3,500 submissions.
Linton, J.D. and Solomon, G.T., 2017. Technology, innovation, entrepreneurship and the small
business—technology and innovation in small business. Journal of small business
management, 55(2), pp.196-199.
Liu, S., Qian, H. and Haynes, K.E., 2020. Entrepreneurship in small cities: evidence from US
micropolitan areas. Economic Development Quarterly, p.0891242420941927.
Nassif, V., Armando, E. and Lopes La Falce, J., 2020. Entrepreneurship and Small Business in
the Context of Post Covid-19: Is there Light at the End of the Tunnel?. Nassif, V.,
Armando, E, & La Falce, JL (2020). Entrepreneurship and Small Business in the Context
of Post Covid-19: Is there Light at the End of the Tunnel.
Ndoro, T.T.R., Louw, L. and Kanyangale, M., 2019. Practices in operating a small business in a
host community: a social capital perspective of Chinese immigrant entrepreneurship within
the South African business context. International Journal of Entrepreneurship and Small
Business, 36(1-2), pp.148-163.
Turgunpulatovich, Y.E. and Bulturbayevich, M.B., 2020. THE ESSENCE OF SMALL
BUSINESS AND PRIVATE ENTREPRENEURSHIP AND THE THEORETICAL BASIS
OF ITS DEVELOPMENT. International Engineering Journal For Research &
Development, 5(6), pp.7-7.
Urbano, D. and Aparicio, S., 2019. An Overview of the Economics of Entrepreneurship and
Small Business: The Legacy of David Audretsch. From Industrial Organization to
Entrepreneurship, pp.279-306.