Entrepreneurship and Small Business Management

This report explores the different types of entrepreneurship, their relation to typology, similarities and differences between entrepreneurship ventures, impact of micro and small businesses on the UK economy, importance of small businesses and start-ups for social economy growth, characteristics and skills of successful entrepreneurs.

Unit 9 — Entrepreneurship
and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of entrepreneurship and their relation to the typology of entrepreneurship:. 3
P2 Similarities and differences between entrepreneurship ventures............................................5
TASK 2 ...........................................................................................................................................7
P3 Impact of micro and small businesses on the economy in UK...............................................7
P4 Importance of small businesses and Start-ups for growth of the social economy..................7
TASK 3 ...........................................................................................................................................8
P5 Characteristics traits and skills of successful entrepreneurs..................................................8
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset.........................9
TASK 4..........................................................................................................................................10
P7 Examples of entrepreneurship..............................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship is defined as purposeful activity of an entrepreneur. In this they try to
innovate something and wants to change the world with their idea. There are different
characteristics followed by entrepreneur such as hard work, self-reliance and independence,
highly optimistic and planning and organizing ability etc. These characteristics help
entrepreneur to successfully run their entrepreneurship and small business. This report helps
ASDA company to understand their competitive advantages of their entrepreneurship business
(Takwi, and et.al., 2020). ASDA is retail company which provides grocery and clothing
products. It is based on UK. This report will examine different types of entrepreneurship
ventures and also explore their similarities and differences. It will also illustrate that how micro
and small business create impact on economy and also explain importance of small business and
start-ups. This will also determine the characteristics traits and skills of successfully
entrepreneurs. In the end of the report it will evaluate entrepreneur’s mind-set that how they are
motivated for their work and give relevant example to explain their foster entrepreneurship.
MAIN BODY
TASK 1
P1 Different types of entrepreneurship and their relation to the typology of entrepreneurship:
Entrepreneurial:
In this type of venture entrepreneur is an individual who start their business with limited
resources. This type of entrepreneurship is completely innovative and not related to any existing
business model. In this, entrepreneur take high risk to run the business. It is mainly classified in
new product development and innovation business model. In this, person has highly focused on
their idea and try to implement it and properly lead the business. Although in entrepreneurial
venture uncertainty is high and at will affects whole business and its development if some risk is
occurred.
Intrapreneur-ship:
In this type entrepreneurs are believed that lost and failure will not affect any personal
cost. Intrapreneur-ship is basically a large organization of entrepreneurs. In which they are self-
motivated and ready to do anything for their ideas. They also take initiatives to implement their
ideas with the limitation of organization. They always focus on particular issues, and they have
ability to find better solution for firm by provide innovative ideas and services. In Intrapreneur-

ship entrepreneurs are work with freedom and their main characteristic is foster behaviours and
independence for their work in an organization.
Managerial:
This venture considered the managerial organization which Manage employees and staff
members for their work and performance (Morris, and et.al., 2018). In this firm, some
employees have power to change employees work and position according to their performance.
These employees are on higher position in the organization. They guide employees for work and
ensure that they are increasing their work performance effectively. In managerial
entrepreneurship employees have responsibility for day to day work activities.
Scalable start-up:
These types of ventures know their vision, and they also have believed on their vision
that they can change the world. They attract investor by their ideas and by their confidence. By
their idea these firms create different relationship in market. This type is mainly focused on
improvement of the product and service quality.
Large company entrepreneurship:
This type of ventures focuses on achieving goals and objectives. In this type of
organization, large numbers of employees are working. Their main target is to increase their
sales and rise their profitability with productivity.
These different types of entrepreneurial ventures are related to different entrepreneurship
typology such as small profit ventures, lifestyle ventures and high growth ventures. These
ventures help organization to grow their business and increase their profitability.
Small profit ventures:
These ventures are not focusing on their extraordinary growth. Its best example is small
shops in cities which are run for small profits, and they have 2 or 3 employees (Sallos, Yoruk,
and García-Pérez, 2017). They are an independent entrepreneur and it helps them to take their
own decision for their small business.
Lifestyle ventures:
In these entrepreneurs’ focus is to gain high profit. They need to achieve their objective
and goals to rise their position in market. They run the business and maintain by their own
decisions based on their own lifestyle. Lifestyle ventures generally start their business from their
passion and with new idea to make profit.

High growth ventures:
Basically in this, their main objective is to gain maximum profit as much as they can.
They are mainly focused on growth of the company and to achieve huge profit. For this, they try
to secretin their productivity and service.
P2 Similarities and differences between entrepreneurship ventures
There are various similarities and differences are present in different entrepreneurship
ventures such as public, private and social ventures (Lazar, and et.al., 2020). In these ventures
similarities and differences are as follows,
Attributes Public Ventures Private ventures Social Ventures
Definition It is defined as organization
which help people and
society for their betterment.
Private venture is
defined as organization
in which less number of
employees are working
to earn profit and for
the growth of the
company.
This is defined as non-
profit organization
which is work for
society development
and to create change.
Goal Main goal is to help public
and society and provide
solution for their problems
by making profit.
Their main goal is to
achieve their targets and
objectives and increase
their performance as
well as profitability.
These ventures main
goal is to provide more
social values to the
consumers by their
services.
Strategy
Development
They use different strategies
to develop society and
public so that they can
provide the best solutions
for their problems
They try use different
strategies which rise
their profit and revenue.
In these ventures
strategies is developed
for betterment of the
people and public to
earn profit.
Revenue
Source
In these revenues are
generated by different taxes
such as income tax,
Private ventures
revenue sources are
loans and local
For these ventures
main revenue source
are donations and

corporate taxes etc. investors. personal investment by
owners.
Profit
distribution
Company profit is
distributed between different
stakeholders, employees and
suppliers.
In this profit distributes
among investors and
stakeholders.
As these ventures main
goal is to provide
service to society so
their profit distribution
also between society
and for their
betterment.
Value Values for public and for the
society which effect
environment.
In these values are
focus on earned more
profits (Block, and
et.al., 2020).
It generated social
values for society
improvement.
Stakeholders There are different stake
holders such as owners,
employees, investors,
suppliers, national level
stakeholders etc.
It includes different
stakeholders such as
government, owners
and investors.
Its stakeholders are
consumers,
businessman,
investors, funders etc.
Example The best example for public
venture is ASDA retail
company which provide
product and service for
public solution and
according to their
requirement.
The best private venture
example in UK is Swire
which is provided
property development
services in UK. They
provide different
services to earn profit
and to grow their
business in the industry.
Its best example in UK
is Social employment
empowerment. Which
is operated in England
and provide support
too public to get
employment. Its vision
is to provide
opportunity to all for
employment and for
improvement of the

society.
TASK 2
P3 Impact of micro and small businesses on the economy in UK
In UK economy micro and small businesses are creating huge impact. They are very
important for the countries' economy. In UK, majority of the companies are working in micro
and small business such as local stores to small technical companies which provide local services
to the consumers. Micro and small business are backbone of the country. There are 5.7 million
micro business are operated which affects companies’ economy, driving growth, opening new
markets and provide employment in the country. In 2014 estimated 5.2 million business are
micro and small business which are created huge impact on UK economy. Small and micro
business are independent with less than 250 employees (Hardoon, 2015). In these they are
basically operated two types of business first one is household industries in these they usually
work in rural and semi-urban areas, and modern small business they are focus on innovation and
technology.
There are various ways in which small business impact on economy growth some are as
follows,
Generate employment opportunities: Unemployment creates high impact on country's
economy rate. Employment provide stability in economy rate and in UK micro and small
business are operating on large scale and it provides various employment opportunities in the
country. Around 16.3 million employees in UK are work in micro and small business.
Generate competitions and encourage further innovation: They also provide skills and ideas
to the country to make market place more dynamic. Start-ups like UBER, Airbnb etc. are given
huge impact on economy and all these start-ups are started as micro or small business.
Quickly adapt changes in economy: Small and micro businesses are independent and customer
oriented which are affected by economy changes that's why they easily adapt economy changes
and survive in that conditions as well (Peck, Jackson, and Mulvey, 2018).
P4 Importance of small businesses and Start-ups for growth of the social economy
Small businesses are improving their work performance and productivity day by day to
rise their growth in the market and also for long term development. There are different small
businesses and micro business which are directly and indirectly affect social economy. There is

various business which are operating for social well fare and for society improvement. Start-ups
and small business development play important role in growth of social economy. They provide
employment in the society as well as creative and innovative ideas create huge impact on the
society. Small business help public to develop themselves with their products and services and as
above discussed in UK majority business are small and micro business that's why their growth is
also important for the social economy. Small business is play vital role in social economy
because it includes charity based organization, non-profit organization as well as it include
cooperative organization which provide social services to the public for improvement in the
society and these companies also help in development.
Start-up provide more contribution in economic development of the country by providing
employment opportunities. It also decreases the crime because employees are busy to achieve
their target and unemployment rate is also decreased (Gumel, 2017). In now days more than
three million peoples are connected by social economy and in this small business and start-ups
are playing major roles. They are providing different offers to the society which help in social
economy they offer training and development programs which assists employees to upgrade their
knowledge and help them to provide services to the society. Small business also important in the
society because the provide service and products quickly, they also provide employment
opportunity to skilled or unskilled peoples and create healthy competitions in the market.
TASK 3
P5 Characteristics traits and skills of successful entrepreneurs
There are different traits and skills which affect entrepreneurs to stay motivated and
inspire and help them to achieve success in their entrepreneurship businesses. Some
characteristics and skills are as follows,
Hard Working:
This skill helps entrepreneurs to gain success in their business. Hard working nature help
them to work on their dreams and on their ideas. It also assists them that how hard work make a
path for successful business. Hard work creates positive impact on entrepreneurs' life. For
example hard-working skills help Philip Green to make their name in the industry.
Ability to take risks:

They must have this skill to create change in world and for successful business in the
industry. Ability of risk taking helps entrepreneurs by increasing their journey as a learning
process with including possible failures. It also assists entrepreneurs that how to become more
challenging. For example David and Simon Reuben take risk and try their luck in property
investment and it gives them a result in their favour now they are the richest entrepreneurs in
UK.
Proper Planning: Decision-making and proper planning help entrepreneur in effective
management and growth in their business and employee performance. It also gives benefits to
the company such as effective management help employees to increase their working ability and
productivity and it also rises profitability. For instance Alan Sugar are created their name in top
entrepreneur list with their best management skills and proper planing.
Creativity: For become successful entrepreneur and to make their position in industry
entrepreneur must have creativity skill. This skill helps in competitive advantages as well as it
also provide customer attraction and uniqueness in the industry.
Self Confidence: This characteristic help entrepreneur to believe in themselves and their ideas. It
also beneficial for entrepreneurs to done their tasks easily and it also helps them to complete
their target and objectives effectively.
Money Management: It is most important trait for entrepreneurs because it assists them in their
financial management (Shabbir, and Muhammad & Kassim, 2019). This characteristic also helps
them by providing proper guidance and information about their investment and about their
financial management.
Adaptability: This skill provide opportunities to the entrepreneurs to work in any environmental
change in business and it also helps to create constant profit for the company without affected by
any internal and external factors.
All these characteristics and skills are extremely helpful for top entrepreneurs in UK such as
Philip Green, Alan Sugar, David and Simon Reuben etc. for their successful business and to get
the name in the list of top entrepreneurs in the UK.

P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset
Entrepreneurs personality reflect by several factors and these factors help them to create
their positive mindset and stay motivated towards their goals and dreams. These several factors
are as follows,
Lifestyles: Entrepreneurs lifestyles are also affected their business and entrepreneurship.
Lifestyle provides motivation in business and it also creates effective and positive mind-set of
entrepreneur which business to become successful. It also helps them to increase their risk taking
capabilities and different characteristics. Basically entrepreneur lifestyle reflects their business as
well as their personality it also assists them to develop personality according to their business.
Family upbringing: If a person is born in businessman house then it has more chances that their
upbringing affects their mentality, and they got interest in entrepreneurship and business. That's
why family upbringing are affect entrepreneurs personality and reflect their mind-sets. In most of
the cases poverty and big dreams of a person with high motivation also attract towards
entrepreneurship and their ideas might change the world. For instance David and Simon Reuben
are affected by their childhood because of their father death in early ages that circumstance
motivate them to be a successful entrepreneurs.
Cultural difference: It helps entrepreneurs to collect different information and it also assists
them how these cultural difference information and knowledge will be used to gain most
effective results. Cultural difference also helps entrepreneurs to distribute different roles and
responsibilities according to their knowledge and skills it helps employees (Shepherd, and
Patzelt, 2018). It also reflects their personality and help customers by providing different
services according to different skills. Basically cultural difference creates effective personality of
entrepreneurs and assist them to lead in different cultures.
Personal Motivation: It is the most important factor that create entrepreneur’s personality and
reflect their mind-sets. Entrepreneurs know that for success in their business their intrinsic
motivation is the only key that they can use to stay motivated towards their goals and which will
help them by providing effective results. For example this factor help a lot to Philip Green to
create their business after so much struggles in life.
Persuasive communication: This factors help entrepreneurs in leading and managing their
industry. It creates reflective personality of entrepreneurs which help them in effective
communication as well as to make loyal customer base.

All these factors helps entrepreneurs and reflect their mindset personality and give them
motivation to grown in business with higher performance.
TASK 4
P7 Examples of entrepreneurship
Entrepreneur refers to any individual who wants to establish their own business and bear
all the risk alone and also enjoys the profits.
Philip Green
At present Philip Green is the current CEO of Arcadia group, which is an iconic brand
in retail industry (Hisrich and et.al, 2017). But to reach at this position Philip has to go through
various difficult situations in their life. In the year 1979 Philip officially enters into the retail
business, Philip started many small businesses at the early stage of their career, but they get
failed. At the beginning of their career, Philip opened a small shop but it gets succeed only for
the few years then Philip has to shut down the shop as well. But Philip never lose hope and never
get demotivated. Their focus was to become a successful entrepreneur. After shutting the shop,
Philip bought a British home store and rename it as BHS and it got successful after two years,
Philip introduced Arcadia and it got success and now Philip is the fourth riches man of UK. The
only key of success behind Philip is that they never lose hope and never walk off from their
dream. Philip always remain dedicated towards the dream of becoming a successful
entrepreneur.
Alan Sugar
Alan sugar is a very successful entrepreneur of UK; Alan was not from the rich family.
In their childhood Alan used to work in grocery store to earn extra money for their family. Alan
was having interest in electronic, so Alan left the school at 16 and sold started saving money to
become an entrepreneur in the field of electronics (Hayes, 2020). In the early stage of their
career they bought a Van by selling their radio, electronic goods and other accessories. In the
late years Alan started AMS trading company it got success after that Alan started more business
and after that they become a famous anchor of BBC's show. The key factor behind the success of
Alan is hard work and self believe.
From both the stories of entrepreneurs it can be said that hard work and devotion towards
the goal can only lead an individual towards the success.

CONCLUSION
After analysing the entire report, it can be concluded that the report speaks about the
entrepreneurial venture. This report states about the different types of entrepreneurial ventures
and their importance is also mentioned in this report. Besides this, how micro and small
businesses impacts the economy is also defriending in this report. To prove the impact of micro
and small business in the economy, there are some statistical data also mentioned in this report.
Besides this how these small and business and start-ups helpful in the growth of the social
economy is also described in this report. Apart from this what are the skills should be in the
entrepreneur so that they get success has also been elaborated in this report. How entrepreneur
motivates other is being mentioned in this report. This report contains examples of successful
entrepreneurs, which can be a motivation of others.

REFERENCES
Books and journals
Takwi, F., and et.al., 2020. Entrepreneurship and Small Business Management: Critical Success
Factors of Entrepreneurs and Small Business Managers.
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.
Sallos, M.P., Yoruk, E. and García-Pérez, A., 2017. A business process improvement framework
for knowledge-intensive entrepreneurial ventures. The Journal of Technology Transfer.
42(2). pp.354-373.
Lazar, M., and et.al., 2020. Entrepreneurial team formation. Academy of Management
Annals. 14(1). pp.29-59.
Block, J.H., and et.al., 2020. The entrepreneurial finance markets of the future: a comparison of
crowdfunding and initial coin offerings. Small Business Economics, pp.1-18.
Peck, F., Jackson, K. and Mulvey, G., 2018. Regulation and growth-oriented small businesses in
North-West England. Journal of Small Business and Enterprise Development.
Gumel, B.I., 2017. Critical challenges facing small business enterprises in Nigeria: A literature
review. International Journal of Scientific and Engineering Research. 8(8). pp.796-808.
Shabbir, M.S. and Muhammad &Kassim, N., 2019. Entrepreneur as an Individual Review of
Recent Literature on Entrepreneurial Skills. Opcion. 35. pp.582-599.
Shepherd, D.A. and Patzelt, H., 2018. Entrepreneurial cognition: Exploring the mindset of
entrepreneurs. Springer Nature.
Hisrich and et.al, 2017. Entrepreneurship. McGraw-Hill Education.
Online
Hardoon, A., The importance of small businesses in the UK economy. 2015 [Online]. Available
through: <https://smallbusiness.co.uk/the-importance-of-small-businesses-in-the-uk-
economy-2492626/>
Hayes, A, 2020 Entrepreneur., [Online]. Available through:
<https://www.investopedia.com/terms/e/entrepreneur.asp>