Unit 9 - Entrepreneurship and Small Business Management

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
Types of entrepreneurial ventures and how they relate to typology of entrepreneurship............3
Similarities and differences between the entrepreneurial ventures..............................................4
Task 2...............................................................................................................................................6
Impact of micro and small businesses on the economy...............................................................6
Importance of small businesses and business startup in growth of socio economy....................7
Task 3...............................................................................................................................................8
Characteristic, traits and skill of successful entrepreneur............................................................8
Entrepreneurial personality reflects motivation and mind set ..................................................10
Task 4.............................................................................................................................................11
Background and experience influence entrepreneurs ...............................................................11
CONCLUSION .............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship is now become the trend as everyone wants to engage in it. In order to
make contribution in the growth of the economy people are focusing more towards starting their
own businesses. In this report, we will study the different types of entrepreneurial ventures and
topology of entrepreneurship and relation between them. In this report, we will also explore the
various similarities and differences between entrepreneurship ventures. This report will also state
that how micro and small businesses impact on the economy after assessing the relevant data and
statistics. This report will also help us to understand the importance of small business and
businesses start-ups to the growth of the social economy. In this report, we will study the
characteristics, traits and skills of the successful entrepreneur and assess how entrepreneurial
personality reflect entrepreneurial mind-set. We will also study that how the experience of the
successful entrepreneur hinder the entrepreneurship.
MAIN BODY
Task 1
Types of entrepreneurial ventures and how they relate to typology of entrepreneurship
Entrepreneurship ventures is the organisations which offers the existing, new and
innovative product and services to existing and new customer in the new and existing market.
The owner of the entrepreneurship ventures are deals with the known as well as unknown risk on
the basis of the types of ventur(Morris and et.al., 2018)e. The four type of entrepreneurship
ventures are:
1. Small business entrepreneurship: These entrepreneurs runs their own businesses by
arranging the fund via friends, family and small business loans. Their motive is to make a
profit only to live the modest lifestyle not to build a business with high turnover. They
mostly hire the local people and family member in case of need. For example Coffee
shop, Courier, Catering, grocery stores etc.
2. Scalable start-up entrepreneurship: These entrepreneurs start their business with a
vision to change the world. In order to rapid expansion, they attract the different financial
investors in order to get more capital. Their main motive is to find best and scalable
business model and making market share. They also focus towards creating wealth for the
founders. For example Hassle.com , Sendmybag.com etc.

3. Large company entrepreneurship: These entrepreneurs mostly focus towards offering
new and innovative products which are different from the existing product available in
the market. This company mainly focus on selling new products to new customer in new
market. Because of changes in customer taste and preferences, technologies, competitors
and customer loyalty it create pressure for large companies to make its personality. For
example Unilever plc, Aviva plc etc.
4. Social entrepreneurship: These entrepreneurs focus towards creating the product and
services in order to solve the needs and problem of the society. Unlike scalable start-up
the goal of the business is not to create wealth and make market share but to help the
society. Example of social business in order to change the world are Cafedirect,
Company shop etc.
The typology of entrepreneurship is describe as the classification of the types on the basis of
entrepreneurial creativity and opportunities recognition(Hsu, Simmons and Wieland, 2017). The
four type of typology of entrepreneurship are:
1. Creative constructionist: If both the entrepreneurial creativity and opportunity
recognition are high then the business owner become creative constructionist.
2. Creative opportunist: If the entrepreneurial creativity is high but the opportunity
recognition is low then business owner become creative opportunist.
3. Creative designer: If the entrepreneurial creativity is low but the opportunity
recognition is high then business owner become creative designer.
4. Creative producer: If both entrepreneurial creativity and opportunity recognition is low
then business owner become the creative producer.
Entrepreneurs are the person who manages the activities of the whole business by hiring
best and talented staffs. In order to become the creative constructionist they have to focus on
making better career success in terms of creative performance, achievement, increasing social
reputation and customer satisfaction level and the happiness of the staffs by providing them
incentives.
Similarities and differences between the entrepreneurial ventures
Similarities between the four entrepreneurial ventures are:
The similarities between the small business, scalable start-up, large business and the
social business are the hierarchical structure(Basole, Park and Chao, 2018). The authority in all

the ventures are move from top to bottom and the responsibilities are move from bottom to up.
All the four ventures has to follow the rules and regulation of the government in order to sustain
their businesses. In order to pursue the loan from the bank whether it is small, medium and large
every businessman has to file the income tax return even in case of nil liability is one of the
similarity between all the four types of ventures. Licensing the name of the business is also must
for the company is also one of the similarities of the types of businesses.
Differences between the four entrepreneurial ventures are:
Basis Small business
entrepreneurship
Scalable start-up
business
entrepreneurship
Large business
entrepreneurship
Social business
entrepreneurship
Meaning Small business
entrepreneurship
is the business
which is run by
only one person
i.e. owner and if
need they include
local employees
and family
members.
Scalable start-up
entrepreneurship is
the business which
is run by the owner
and talented staff
in order to change
the world.
Large business
entrepreneurship
is the business
which offer the
new product to
new customer in
new market
different from
core product.
Social business
entrepreneurship is
the business whose
main motive is to
help the social
needs and problem.
Size The size of these
business is small.
The size of these
business is
medium.
The size of these
business is large.
The size of these
business is small,
medium and large.
Employees In small sized
business
employees are
between 10-49
In medium-sized
business
employees are
between 50- 499
In large business
employees are 500
and above
In social business
employees can be
less than 10 and
also more than 500
depending on their
size.

Turnover Turnover of these
business are
between £5
millions to £50
millions
Turnover of these
business are
between £50
millions and £250
millions.
Turnover of these
business are above
£250 millions.
The motive of the
social business is
help society not to
make turnover.
Needs to earn
profit
The need to earn
profit is to feed
the family
member.
The need to earn
profit and make
market share is to
change the world.
The need to earn
profit is to expand
the business and
economies by
entering into
emerging market.
There is no need to
earn profit and
make market share
because they
established the
business to help the
society.
Source of
funds
By own capital or
small business
loans
By medium
business loans or
issuing shares and
debts at mid level.
By issuing shares
and debentures,
long term loans at
large level.
By collecting
donations from the
wealthy
businessman, local
public etc.
Task 2
Impact of micro and small businesses on the economy
Micro and small businesses are the business of UK whose annual turnover is less than
£50 million. The majority of the businesses in the UK are small and micro business. In 2018,
around 96% of the whole companies in UK are micro business and 99% of all the companies in
the country are SMEs. From local shops to scalable start-up most of the businesses are come
under this category(Blankson, Cowan and Darley, 2018). In present era, micro and small
businesses in the country are become the backbone of the healthy economy. In 2018, the survey
has found that small and micro business contributed to 51% of all turnover generated by the
private sector. The impact of micro and small businesses on the economy is that they provide
employment to the unemployed people because of that the employment rate of country will
increase. In order to drive the economic growth and increasing Gross Domestic Product, the most

important factor that matters is the consumer spending. Micro and small business do not invest
the funds in capital but they invest the funds in expansion in order to meet the consumer demand
if in case they are not spending. Small and micro businesses mainly have impact on the local
economies. They bring growth, prosperity and innovation in the local countries. With the healthy
supply of skilled and new ideas small business contribute in the expansion of economy. By
adopting new technologies most of the entrepreneurs move towards the digitization in order to
grow the economy. By identifying new markets and open up to these markets entrepreneurs are
accepting the innovation and new ideas. Currently, 99% of the businesses across every main
industry are Small and micro businesses. They are more customer oriented, so in order to survive
in economic downturns small and micro business come first(Anggadwita and et.al., 2017). In
increasing the productivity of the country, small and micro businesses play a vital role. The
production level of the manufacturing company is increased to 32%. This looks very positive
even during this Brexit situation. Small and micro businesses are mainly focus on understanding
the taste and preferences of the consumer and also the demand and supply in the market. They
ultimately serve to the consumers by increasing the consumer spending behaviour. Inflation rate
is a factor which directly affect the consumer spending behaviours. Consumer spending
behaviour have both positive and negative impact on the economy. Because of the 99% of the
total businesses operating in UK are SMEs, so the collective success and failures of the
businesses have a great impact on the economy.
Importance of small businesses and business startup in growth of socio economy
Business entities and organization play a crucial role in the overall growth and
development of socio economy. Business operations put a direct impact over the socio economy
and its functions as the concept of socio economy comprises with factors like income of people,
education, employment, community safety and social support like factors or elements. Business
organization carry a direct link up with different aspects associated with the socio economy
(Landström and Harirchi, 2018). The business entities and startups play role in providing earning
opportunities to people not just individuals who are salaried in profession but also for the
entrepreneurs and business individuals who are channelizing some kind of business activity get
an influence from the business and start up in respect to socio economy. The scale at which
companies and business startup are doing business influence the overall income capacity of
people ion society. Furthermore, business startup and ventures also favor the education in

society. Many companies and startups take social responsibility in face of corporate social
responsibility by allocating free education to people who are needy and require free education
due to lack of financial resources available (Ribeiro-Soriano, 2017). Free education is among the
major initiative which small and medium scale businesses are favoring in current time as it
fundamentally benefits to such organization also in form of they get to employ the best possible
talent and educated professionals over different designated position role in the organization
hierarchy. The education initiative copes up with two fundamental socio responsibilities for
micro and small business startup one is to conduct the corporate social responsibility functions
and also to get the opportunity where these businesses get to employ the skilled and bunch of
human resources which can favor the business objectives these businesses carry. Employment is
among the basic need of the society. IN United Kingdom approximately 99% of business houses
belong to small and medium, size of business which favor to millions and billions of people in
United Kingdom for getting the potential employment opportunities.
Growth of small and medium scale businesses addresses the unemployment issue in
United Kingdom. Every government has a huge concern in order to deal with the unemployment
issue and these small and medium scale business houses as they are approximately 6 million in
numbers they also address the potential employment requirement of the people in society
(Kwilinski and et.al., 2019). IN respect to the socio economy employment creation is a key
aspect ad factor that favor the overall growth requirements of the socio economic concept.
Spreading the quality education and employment opportunity is among the major contribution
small and medium scale business houses are contributing in the face of small and medium scale
business houses in United Kingdom. Community safety is another key fundamental aspect which
small and medium scale business houses are addressing in United Kingdom. These small and
medium scale business houses favor to the community safety and social support aspect
associated with the socio economy. IN the precise manner it can be concluded that small and
medium scale business houses put a huge contribution in the overall growth and development of
socio economy. They cover all key areas associated with the socio economy which significantly
advances the overall values of society and believes over which socio economy the entire concept
work.

Task 3
Characteristic, traits and skill of successful entrepreneur
Entrepreneurship is about to convert the vision into the successful business idea. The
successful entrepreneurs are such that could establish the successful business ventures
considering a potential growth rate in the associated market. Successful entrepreneurs carry
different characteristics, traits and skills that are projected as the basic fundamentals that support
the successful entrepreneur in achieving the overall growth and success behind the business
operation once they channelize and entertain (Chen, 2018). Successful entrepreneurs like Zuber
and Mohsin has a great communication skill which supported them in interacting with all the
external and internal stakeholders associated with the business operations. Communication is
among the key characteristic trait part of the successful entrepreneurs which make them more
capable to deliver the overall business objectives.
Business environment is very volatile in nature which offer various new challenges and
dimensions to business operations. Due to the volatility in business environment new factors and
aspects also become part of the business operations. Communication skill favored both these
entrepreneurs in addressing all the stakeholders part of business operations and also to deal with
all different challenges which entrepreneurs face against the business activity deliver.
Communication skill make these entrepreneurs capable to communicate with the stakeholders in
regards to the objectives and operations of company entertain. Decision-making is also a key
characteristic trait part of the successful entrepreneurs. This ability of the entrepreneurs makes
them able to taker the best level of decisions that can support the overall growth and objectives
of the business operations they channelize (Brush and et.al., 2019). This part of the overall
personality of entrepreneurs support in making the best level of decisions to achieve the business
objectives. IN context to the overall growth and success of business houses decision making is
the key approach or tactic that can favor all the various business objectives. It is also noticed tat
sacksful entrepreneurs are creative in nature. They think creatively which favor the overall
growth and development of the business ideas they try to deliver. Due to the creative and
innovative ideologies these entrepreneurs make efficient decisions that can suitable for the
business ideas they are trying to implement. Entrepreneurs Zuber and Mohsin who hold the EG
Group was initially surrounded only in petrol sector but due to the positive and effective
decision-making ability they also switched into the super market chain also which also favored

these entrepreneurs in advancing the overall success of the business outcomes these
entrepreneurs were trying to deliver. Critical mindset always supported these entrepreneurs in
taking only the profitable business decisions that can favor the organizations in dealing with all
the issues and challenges associated with the business environment in which they operate the
business.
Risk taking ability of the entrepreneurs also a significant personality trait which make
them successful in the business. All the intellectual brains part of the corporate sector believes
that risk is the only way to maximize the overall returns against the business operations deliver
by entrepreneurs. Successful entrepreneurs never feel resilience towards taking the risk in the
business (Gast, Gundolf and Cesinger, 2017). The business decision-making approach of
successful entrepreneurs like Zuber and Mohsin are seem risk taking ability as they were only
associated with the petroleum sector at the initial stage of business but in later on stage they also
explored the retail sector which was a brave decision in form of buying the retail sector giants
like Asda and other. This decision favored the overall growth of these successful entrepreneurs
that further boosted the overall business scale of these business personality.
Entrepreneurial personality reflects motivation and mind set
Personality of entrepreneur denote the characters, trait and skills of entrepreneurs which
make them capable to deliver the overall objectives of the business. Personality is such
fundamental that comprises with all the key elements that impact over the decision making
ability of the entrepreneur. Different characteristic or trait like communication. Whenever any
successful entrepreneur communicates with stakeholders associated with the business entity they
always look confident and motivated enough to deal with all the various elements (Drobyazko
and et.al., 2019). The way they always address any of the issue or problem part of the business
operations the confidence and motivation these successful entrepreneur carry shows or reflect in
the operations they undertake. Personality of entrepreneurs like Zuber and Mohsin is very
volatile as they always welcome to new dimensions.
In the business environment it is crucial that entrepreneur take it favorable as the
openness involve in the business environment create multiple business growth opportunities for
all the business houses located in market. Positive attitude and mindset of entrepreneur make
them believe in themselves while taking the best level of decisions in favor of the business entity
they undertake. Motivation always keep them positive in making the most suitable business

decision which can sustain the overall growth of the business organization. Both the
entrepreneurs Zuber and Mohsin were motivated enough while they aimed to take decision in
respect to taking over the retail sector entity in process to expand the business scale or growth
potential of the entity they are trying to undertake (Steininger, 2019). Whenever any individual
and employee of respective EG Group they always look positive while tackling any of the
challenge or issue. In case of addressing any issue or challenge it is crucial as an entrepreneur or
business individual to take it positively and believe in the individual judgement and opinions and
also to favor the knowledge and experience they gain against delivering business objectives. In
context to the business operations it is essential to address all the potential challenges in the most
favorable way possible. Company or any business venture can also meet growth target if they
take on all the challenges associated with the business in the favorable way possible. Employees
who worked with the entrepreneurs Zuber and Mohsin claimed that both these entrepreneurs
have a positive and clear mindset which make them capable to deal with all the possible growth
possibility which can boost up overall value of company.
Task 4
Background and experience influence entrepreneurs
Background and experience of entrepreneur put a huge impact over the entrepreneurial practices
underpin by successful business personals. Zuber and Mohsin are among very successful
entrepreneurs at a global level. Both the entrepreneurs experienced a very decent level of
childhood and also they had a very normal life style in context to the family background they
belong. The middle class background of these entrepreneurs make them capable of addressing all
the potential challenges of business in the most favorable way possible. They also experienced
the middle class life style which allow them understand the actual need and requirements of
society. Retail sector is directly interlinked with all types of economic class or category peoples
and background or experience of these entrepreneurs make them capable of serving all the
potential level of need and requirements associated with the customers. They also took decision
in respect to sustaining the prices in a certain limit in the face of competitive pricing strategy
which also favored these entrepreneurs to undertake all the potential customer base with the
support of pricing tactics of the company (Tkachenko, Kuzior and Kwilinski, 2019). The
background and experience of both these entrepreneurs make them able to understand the need
and requirements of market. Both these entrepreneurs were capable of understanding the overall

need and requirements of market sector in which they are addressing their business practices. It
can be projected that background and experience of entrepreneurs support them in achieving all
the various objectives and success while addressing different business practices.
CONCLUSION
Entrepreneurship is all about converting a vision into a successful business model. Small
and medium scale of businesses are approximately 99%in the United Kingdom in comparison to
the overall business houses. The majority of the business entities belong to this scale of operation
which allow the companies to provide immense employment opportunity in United Kingdom
which allow allowed the government to address the unemployment issue in country. Background
and experience of entrepreneur make them capable of identifying need and requirement of
society which further support them in achieving the socio economic objectives part of business
operations entertained. In the overall growth and development of economy small and medium
scale business houses played the most significant role in United Kingdom.

REFERENCES
Books and journals
Ribeiro-Soriano, D., 2017. Small business and entrepreneurship: their role in economic and
social development.
Kwilinski, A. and et.al., 2019. Formation of the entrepreneurship model of e-business in the
context of the introduction of information and communication technologies. Journal
of Entrepreneurship Education. 22. pp.1-7.
Brush, C. and et.al., 2019. A gendered look at entrepreneurship ecosystems. Small Business
Economics. 53(2). pp.393-408.
Drobyazko, S. and et.al., 2019. Innovative entrepreneurship models in the management system
of enterprise competitiveness. Journal of Entrepreneurship Education. 22(4). pp.1-6.
Steininger, D. M., 2019. Linking information systems and entrepreneurship: A review and
agenda for IT‐associated and digital entrepreneurship research. Information Systems
Journal. 29(2). pp.363-407.
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.
Gast, J., Gundolf, K. and Cesinger, B., 2017. Doing business in a green way: A systematic
review of the ecological sustainability entrepreneurship literature and future research
directions. Journal of Cleaner Production. 147. pp.44-56.
Chen, Y., 2018. Blockchain tokens and the potential democratization of entrepreneurship and
innovation. Business Horizons. 61(4). pp.567-575.
Landström, H. and Harirchi, G., 2018. The social structure of entrepreneurship as a scientific
field. Research Policy. 47(3). pp.650-662.
Morris, M. H. and et.al., 2018. Distinguishing types of entrepreneurial ventures: An identity‐
based perspective. Journal of Small Business Management. 56(3). pp.453-474.
Colombo, M. G. and et.al., 2019. The governance of entrepreneurial ecosystems. Small Business
Economics. 52(2). pp.419-428.
Hsu, D. K., Simmons, S. A. and Wieland, A. M., 2017. Designing entrepreneurship
experiments: A review, typology, and research agenda. Organizational Research
Methods. 20(3). pp.379-412.
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Basole, R. C., Park, H. and Chao, R. O., 2018. Visual analysis of venture similarity in
entrepreneurial ecosystems. IEEE Transactions on Engineering Management. 66(4).
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Heidemann Lassen, A., McKelvey, M. and Ljungberg, D., 2018. Knowledge‐intensive
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Blankson, C., Cowan, K. and Darley, W. K., 2018. Marketing practices of rural micro and small
businesses in Ghana: The role of public policy. Journal of Macromarketing. 38(1).
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Anggadwita, G. and et.al., 2017. Socio-cultural environments and emerging economy
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Online
Entrepreneurship and Small Business Management, 2021 [Online]. Available
through:<https://business.illinoisstate.edu/management/sequences/entrepreneurship.shtml>
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