Entrepreneurship and Small Business Management

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.