Entrepreneurship and Small Business Management

Entrepreneurship and Small
Business Management

Table of Contents
Entrepreneurship and Small Business Management........................................................................1
INTRODUCTION...........................................................................................................................3
LO 1 ................................................................................................................................................3
P1 Types of entrepreneurial ventures and its relation to the typology of the entrepreneurship. .3
P2 Similarities and differences between entrepreneurial ventures..............................................5
LO 2.................................................................................................................................................6
P3 Impact of Micro and Small Business on Economy................................................................6
(Source: Essential Facts You Should Know about SMEs in the UK, 2019.)..................................8
P4 Importance of small businesses and business start-ups to the growth of the social economy8
LO 3.................................................................................................................................................9
P5 Characteristic Traits and Skills of Successful Entrepreneurs which differentiate them from
Managers......................................................................................................................................9
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set
....................................................................................................................................................11
LO 4...............................................................................................................................................12
P7 Different environments that foster or hinder entrepreneurship............................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The act of creating business or businesses is termed as entrepreneurship. The person who
creates business and run the business is known as entrepreneur. One important element of
entrepreneurship is that the business which is involved in entrepreneurship comes with a touch of
innovation. All the businesses which are covered under entrepreneurial businesses do have
something which is new and innovative and fills the gap between customers' requirements and
available products. This report discusses various aspects of entrepreneur and entrepreneurship.
For this firstly report discusses about types of entrepreneurial ventures and their relation with
typology of entrepreneurship. Similarities and differences between different entrepreneurial
ventures and how small and medium businesses impact on economy along with its importance in
growth of social economy. In context of entrepreneurs this report includes discussion over
characteristic traits and skills of successful entrepreneurs which differentiate them from
managers. Aspects of personality of entrepreneurs that reflect their entrepreneurial mindset and
motivation have also been included in this report. Lastly, what type of and how background
affect entrepreneurship in fostering and hiding their entrepreneurship.
LO 1
P1 Types of entrepreneurial ventures and its relation to the typology of the entrepreneurship
There are four types of entrepreneurship ventures which are-
 Small business entrepreneurship
 Scalable Start-up Entrepreneurship
 Large company Entrepreneurship
 Social Entrepreneurship
Typology of Entrepreneurship is as follows-
 Survival Firms
 Lifestyle Firms
 Managed Growth firms
 Aggressive Growth Firms
Types of Entrepreneurship is as follows-
Small Business Entrepreneurship-

Most of all businesses are small businesses and make a profit which is enough for
survival of entrepreneur and their family (Kuratko, 2016). These businesses employ very less
people mostly 1, 2 or no one. These businesses are funded by friends and family or through the
loans for small businesses when this type of venture id related with typology than it can be said
that these businesses are survival ventures which basic subsistence for entrepreneurs and their
family.
These businesses need very less capital and have very few assets and are not necessarily
registered. Along with survival ventures lifestyle businesses can also be connected with this type
of ventures as small businesses which are stable and have a fixed premises and have more profit
than which is required for survival are lifestyle ventures. These businesses follow reinvestment
and have employees but do not have plans for expansion. As example this entrepreneurship may
include a shop which provide custom goods and only that entrepreneur can made such things.
This works at small level. These businesses also includes general house services like plumber,
electrician and such occupation which are required for maintenance of a healthy and proper
living.
Scalable Start-up Entrepreneurship-
This type of venture in which entrepreneurs start their business with a vision and consider
that their vision can change the world. This businesses gets their funding from venture capitalist
and hire employees who are best in their field. This business can be said as manageable growth
ventures reason behind this is that these businesses seek to find a business model which is stable
and repeatable and seeks stable growth over time in scalable start-up businesses it get their
further funding from capitalist to grow the business. This entrepreneurship includes those in
which entrepreneurs have developed a new and innovative products and like to expand the
businesses through the money of those who are known as capitalist. Google and Apple are
example oif such type of business which created revolution in their field and provided something
which people cannot even imagine to be exist in the world some time before.
Large Company Entrepreneurship-
Through sustainable innovation and offering variants of their core products follow a path
and business cycle are known as large company entrepreneurship (Mason, 2018). These
companies keep developing new products to meet the changing needs of the customers and
advanced technology. These can be related with aggressive growth ventures reason behind this is