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Entrepreneurship and Small Business Management

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This document discusses the concepts of entrepreneurship and small business management. It covers different types of entrepreneurial ventures, their impact on the economy, characteristics of successful entrepreneurship, and the role of small businesses in the growth of the social economy.

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Unit 9 - Entrepreneurship
and Small Business
Management

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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Types of entrepreneurial ventures ...............................................................................................3
LO2..................................................................................................................................................9
P3. Impact of micro and small business over economy...............................................................9
P4: Role of small business and start up in growth of social economy.......................................10
LO3................................................................................................................................................12
P5. Characteristics, traits and skills of successful entrepreneurship..........................................12
P6. Reflection of entrepreneurial personality over motivation and mindset of entrepreneurs. .14
LO4................................................................................................................................................15
P7. Background and experience hinder and poster entrepreneurship .......................................15
CONCLUSION..............................................................................................................................16
REFERENCES................................................................................................................................1
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INTRODUCTION
Entrepreneurship is defined as a process to set up a new businesses venture which also
involve design, draft, structure and establishing new business organisation. The concept of
entrepreneurship is all about converting an idea into a successful business setup. Henceforth, this
report will emphasis over different types of entrepreneurship venture and the relation of venture
with different typology of entrepreneurship. All the similarities and differences between
entrepreneurship ventures will also project in this report. Impacts of micro and small business
will also project with the help of relevant data. This report will also project about the importance
of small business and business start up in the growth process of economy will demonstrate in this
report. Furthermore, this report will also project the characteristics of successful
entrepreneurship. Aspects of entrepreneur personality that drives the entrepreneur motivation
will also highlight in this report. Influence of background and experience of entrepreneurs over
the decision-making process of entrepreneurs will also indicate in this report.
LO1
Types of entrepreneurial ventures
Entrepreneurial venture refers to an institution that is developed in order to serve needs of
people by bring innovation and ideas by optimum utilizing available opportunities in the
industry. Whereas entrepreneur is the person that plans to start a business by taking in risk in
order to earn high profit margin by selling products and services (Saleh, and Hudaya, 2019).
There are various types of entrepreneur ventures such as Simon and Booby Arora are two
enterpreneur that planed to start a new enterprise of bargain homewares chain in order to earn
large profit margin.
Social Enterprises: It is company that is established to provide social benefits to people by
operating various function in the society. Such companies objectives is not to earn profit but
rather than render products and services for uplifting standard of living of people. Thus, Social
enterprise promote growth and development of society by provide products and service free of
cost for welfare of people (Vinod, 2020). Therefore, among one such examples of social
enterprise is Health and Social care Finalist that was established in 2004 in order to provide
support to older and disabled people in UK through franchise. These enterprises have minimum
market share , resource that are provided by member of company and not run in order to earn
profit.

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Scalable Entrepreneurial venture: Such enterprise are started by innovative and highly
creative entrepreneur that have vision to grow and expand its business in long run. They raise
capital from venture capitalist in order to get advantages of their high knowledge and experience
in particular industry. Business is started with a motive to expand and grow rapidly by bring
continuous innovation and ideas. Such enterprise have limited resource and market share in
initial stage but grow rapidly because of innovation that helps in expansion of market share in the
industry. For examples: Cocoon is the smartest enterprise that is using patent technology to
provide internet connection for security of home through system without wires and sensors set
up. Thus, it is expands and growing its profitability, market share and sales volume on large
scale.
Large company Entrepreneurial venture: This enterprise employees large number of people
within firm and have huge amount of capital, resource and market share. Company can easily
raise its capital because of strong brand image and high profit margin. Large enterprise operates
its business across nation in order to increase its profitability and market share and to get
competitive position by maintaining quality of products and services render to customers. Thus,
there main objectives is to provide qualitative and standard of products and services in order to
retention customers satisfaction and loyalty (Yusoff and et.al., 2019). For example: Tesco is one
of the leading company in UK having 68,00 shops across nation with wide varieties of products
and services in order to meet customer's satisfaction. Tesco is third largest retailer in the world in
terms of revenue generated by company and it contributes to 28.4% market share in UK.
Small Business entrepreneurial venture: Such enterprise are established by people in order to
earn living for its family members. Enterprise is established with minimum amount of capital
and resource to meet customer's requirement. Thus, it sales products and services at lower price
by reducing its profit margin and decreasing its cost of production in order to increases sales of
company. For example: Davison Canners LTD is food production company that provide tasty
and delicious filling and jams to its customers.
The way relate to the typology of entrepreneurship
Survival firms: Companies that are established in order to survive in market by offering
products at lower cost to increase it sales volume. Small enterprise are included in such typology
as they operate in order to sustain and survive in market.
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High grow firms: Such firm motive is to grow and expands its business by entering into new
market or introducing new products to meet customers needs. Large enterprise are part of high
grow firm as they continuous expand and grow in market.
High tech firms: Scalable enterprise are included in high tech company as they are established
to expand its market share by bring continuous innovation and new ideas in business.
Social firms: Social enterprise are part of social firms as they run and operates its function in
order to provide social benefit to people living in the society.
Similarities between entrepreneurial ventures
Similarities Social Enterprise Scalable
Entrepreneurial
venture
Large company
Entrepreneurial
venture
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Objectives Social business is
established and run in
order to meet demand
and needs of people in
effectively manner for
upliftment of society
(Janani, Ravichandran
and Sujeetha, 2016).
Health and Social care
Finalist objectives is to
provide social services
to customers.
It is also established to
provide innovation and
creative products and
services to customer in
order to fullfil
customers
requirement.
Cocoon is a scalable
enterprise that operates
its business to meets
customer's
requirement by
continuous innovation
and creativity.
Large organization are
also run and operated
to maximize its sales
and profit margin by
satisfying needs of
customer's in an
effective manner.
Tesco is large
organization that focus
is to provide standard
and qualitative
products to customer's.

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Risk Social enterprise are
started by individual
by incorporate various
associated risk with
business. Health and
Social care Finalist
also established risk of
less capital and high
competition.
Scalable enterprise
also have to bear high
risk due to continuous
change in
technologies. Cocoon
by incorporating high
risk is able to grow.
Large enterprise also
take high risk in order
to expand its market
share such as Tesco.
Differences between entrepreneurial ventures
Differences Social Enterprise Scalable
Entrepreneurial
venture
Large company
Entrepreneurial
venture
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Size Social enterprise have
limited size of
operation as it is
established to provide
social services.
Social care Finalist
have limited resource
and capital serve
people of UK only.
Scalable enterprise
have more market
share as compared to
social enterprise
(Kamle, 2017).
Cocoon is continuous
expand its market
share and profitability
in UK as well other
countries.
It has large market
share, employees and
resource for
achievement of
company goals. Such
as Tesco is one of
leading company in
UK market and has
many stores across
various nation.
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Number of employees Number of employees
are less such as in
Social care Finalist
there are only 10
employees to perform
various function of
company.
In it number of
employees are
between 50-250 within
firm. Cocoon have
more than 50
employees that are
high skilled and
knowledgable.
Large enterprise have
employees more than
500 to meet firm
objectives. Tesco have
45,0000 employees
working together for
common goals.
LO2
P3. Impact of micro and small business over economy
Micro Business:
Micro business are considered as all such business ventures that comprises with not more
than 10 human resources and also consist the sales turnover not more than €2 million
(Andersson, 2018). All the business organisation cope up with both the characteristics are
considered as micro businesses. For example business organisations like Boss Brewing Company
of UK is considered as a micro business organisation.
Micro Business Contribution in UK economy
Micro businesses is a crucial aspect of UK economy. As per the research conducted by
Merchant Savy which reveals that UK has over 5.7 million business set-ups. As per the research
99.3% of business set-ups are considered as small and micro size business organisations. AS the
presence of micro businesses across the UK that also leads to major contribution in economy of
UK with the support of micro business houses. Among such 99.3% business organisations
comprises with micro and small businesses 96% are considered as micro business organisations.
Micro businesses consider the contribution of around 21% in the economy of UK that project the
influence of micro businesses over the economic growth of UK. Presence of micro businesses
can be witnessed in the entire UK such as North East total business setups comprises with 27%
as a micro business houses. North west involves 24.9% micro businesses (Bosma, Sanders and
Stam, 2018). Other part of UK such as Yorkshire and The Humbler involves 23.3% micro
businesses. East Midlands are witnessing around 24.6% businesses as micro business
organisations. West Midlands has 24.8% and East of England are witnessing 23.7% business

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ventures as micro business houses. London is also involved 21.1% micro business organisations.
As the micro business organisations consider an effective presence all over UK that contributed
around 20.4% in the UK economy (Vyas and Saha, 2017). As per the record's employment
generation is also a huge aspects of the micro businesses. In UK out of the population 17.3%
people are getting employment with the support of micro business organisations. Apart from all
the positive impacts of micro businesses in the UK economy many of the micro business houses
has engaged with unethical business practices like selling unhealthy products in order to expand
the profitability. Micro business houses consist with limited resources that also restricts the
business strategies of micro business organisation in a limited scope.
Small Business:
Small business organisations are defined as all such business setups that has a sales
turnover less than £6.5million as per the latest profit statements of the organisations and also
consist the man power of up to 50 employees. Based on the applied conditions business
organisations are segregated between small and medium business organisations.
Contribution of Small businesses in UK economy: Small scale business houses is also an
important aspect of UK economy. More than 99% of UK business ventures are considered as
small and medium size businesses. Among such 99.3% small businesses are considered as 3%
that also specifies about an effective number. As per the recent statistics small business has
contributed a sales turnover of 629,163 £millions that specifies a huge number of sales (De Bruin
and Mataira, 2018). Uk economy derives around 47% from small and medium size business
ventures that also a huge source of employment creation and growth in UK. Such a huge
contribution in economy has also reduces the unemployment in UK. SMEs are mostly depends
upon innovation and creative business ideas in order to grow the business due to lack of
resources. Small and medium sixze business play effective role in the economic growth of the
United Kingdom as they contribute effectively in the GDP. By easrning heavy returns small
business and medium size business also contributes in the tax revenue of the UK government.
Taxation is the key elements that improves the government stability to meet the needs of the
society. Small and medium size busineses not just contribute in the economic growth of United
Kingdom but alos in the social growth of the people in United Kingdom.
P4: Role of small business and start up in growth of social economy
Social Economy
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It refers relation between the economic system and cultural behaviour of people. Social
economy concerns a group in which economical schemes is controlling, ordering, assuring
benefits and provide equivalent opportunities to human being in the society. Social economy is
the group of various social subjective which are categorized in conjunctive society, monetary
resource , earnings and voluntary (Quarter, Mook, and Armstrong, 2017). It supported to the
non-profit sector and any surplus or profit earn are invest within the organization.
Four pillars of social economy- Mutual societies, foundations economy, charity and association
are four pillars of social economy. These all the below here-
Mutual-Mutual are monitory sources that could financial support to the small society peoples. It
provides leaving human being and non-life insurance religious service to the people. The purpose
of mutual societies is to fulfil the customer requirement and provide return to customer on its
capital which capital they are invested in to mutual societies. Example of mutual societies are
Schroders is mutual fund organization.
Foundations- Foundation economy provide the goods and product service which are necessary to
keep every citizen safe. It must give satisfaction to the everybody. The foundation economy
concept offers the opportunity to forward job declination and cut down the outflow of money
from society.
Charity- A charity refers the particular amount that are voluntary given for help for those people
who actually need (Almeida, and Cunha, 2018). Charity arises the capital in order to assist for
hapless and sick people. Charity provide benefit to other people. For example, British heart
foundations is aim is to find out who fight against heart disease to research them and provide
heart treatment.
Association- Association refer to the relation between two beings who are working together for
common goals and objective of company these are connected with same idea, feelings and
images. For example, British hospitality association is an organization that provide restaurants
and food service.
Importance of start up on growth of social economy
Start-up is essential for economic growth if organization think good idea start-up running.
Start-up may be small or may be big. It creates more jobs for improving economic growth. For
using good technology people organization improve their production, even also boosts the social
economy growth. It provides good better living, standard to the social culture. Start-up can
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support to charity socio economy by giving time, by donating their skill, by donating gifts and
become a organ donor it can raise the social fund by giving some part of profit, they can donate
blood and can to save the life or any people of economy. For example, start up business club is a
start-up firm it is an investment firm that provide seed capital.
Importance of small businesses on growth of social economy
Small business is a backbone of social economy they fulfil the demand of people. It
provides employment opportunities to people these are not employable small business help them
(Ribeiro-Soriano, 2017) . They make the market more competing and help people to acquire
earnings. Small business can be supporting the community, donate in local charities and do
everything for them they can give their support in growth of social economy. For example, of
small organization is cafe pod coffee co. Produce of coffee drink.
LO3
P5. Characteristics, traits and skills of successful entrepreneurship
UK has effective entrepreneurship culture that has also improved the economic growth of
the country. Entrepreneurs play an effective role in the economic growth of the country as they
cater the business services in the affordable price range. Entrepreneurship is all about converting
an idea into a successful business model that also involve innovation and creativity as a part of
business practices. Among all successful entrepreneurs of UK Simon and Boby Arora are also
among two successful entrepreneurs.
Characteristic, skills and traits of successful entrepreneurs
Vision: Entrepreneurs carry the specific vision in order to conduct business operations.
Entrepreneurs set a proper vision before conducting any activity related to the business
organisation. Based on the set vision entrepreneurs plan all business operations and activities.
Vision is the crucial elements involve in entrepreneurship work practice as it drives the
motivation of entrepreneurs in order to build the successful business ventures (Estrin,
Mickiewicz and Stephan, 2016). Most of the time entrepreneurs link their vision with any social
aspects and put efforts to solve such social aspects with the business plan. For example
entrepreneurs of UK Bobby Arora and Simon also built a successful business venture with the
vision of catering the best quality aviation, soft drinks, soft toys and software.
Leadership: Entrepreneurs are considered as the future leader of the society and corporate
sector. Leadership is among the major skills and ability entrepreneurs must possess in order to

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build a successful business organisation. Entrepreneur drives the business operations with the
support of leadership quality that enables successful entrepreneurs to understand and assess the
situation and take the most appropriate business decision. For example entrepreneurs Bobby
Arora and Simon has build a successful business set up call B&M and the leadership skills and
qualities of both the entrepreneurs play crucial role in establishing a huge business set up.
Dynamic Communication: Dynamic communication is also a crucial skill or trait of the
p[personality of successful entrepreneurs across the globe. Communication is a crucial aspect of
business organisation as it enables smooth operational activities. Entrepreneur has a dynamic
personality which also reflect in the communication skills of successful entrepreneurs (Holt and
Goulding, 2016). They always try to motivate the employee's of organisation while
communicating on any business aspects. Entrepreneurs also carry the specific sense of humour
that enables successful entrepreneurs to make conversation more interesting. For example
entrepreneurs Bobby Arora and Simon are known for their dynamic communication skills that
supports both of them in dealing effectively with all the stakeholders of the organisation.
Persistence: Persistence is also a crucial personality trait entrepreneurs posses. To be a
successful entrepreneur it is crucial to put consistent efforts in conducting operation's.
Entrepreneurs face plenty of failures in order to build a successful business venture due to lack of
resources, experience and other relatable aspects that resist the business idea of entrepreneurs.
Apart from all the failures entrepreneurs always put consistent efforts in order to build the
successful business set up.
Motivation: Entrepreneurs always looks motivated apart from all the associated challenges with
the business set up. Motivation plays a key role in getting successful in any field. Corporate
sector is very competitive sector and in order to sustain and grow in the sector it is crucial to be
motivated all the time and also to motivate other stakeholders associated with the business. For
example Entrepreneurs Bobby Arora and Simon always looks motivated in any complex
situation associated with the business operations that drives both the entrepreneurs to deal
effectively in all the complex situation.
Independence: Entrepreneurs are among such leaders who start from the scratch. To be
independent is also a major personality trait and ability successful entrepreneurs possess. IN any
situation entrepreneurs never give up and also they fight independently without any support. This
quality of entrepreneurs make them the successful business leaders.
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All the above qualities and skills reflect the successful entrepreneurs across the globe.
Difference between entrepreneurship and business manager
Characteristics, skills and
traits
Entrepreneurs Business Manager
Vision Entrepreneurs carry the vision
of establishing a successful
business venture.
Business manager carry the
vision of improving the growth
potential of already established
business organisation.
Leadership Leadership play a key role in
establishing a successful
business set up for
entrepreneurs.
Business manager also needs
leadership skills but not as
compare to entrepreneurs.
Dynamic communication Entrepreneurs carry the more
dynamic communication
technique as they involve in all
aspects of business operation's.
Managers are not known for
dynamic communication skills
they follow the normal
communication channels used
in organization.
Persistence Persistence approach of
entrepreneurs towards business
make them a successful
corporate entity.
Manager are also persistent
enough, but they follow the
same operational approaches.
Independence Entrepreneurs are independent
as they don't carry the major
support from any entity
(Mustapha, Sorooshian and
Azizan, 2016).
Manager are not considered as
independent as they get
support from senior authorities
in organisation.
P6. Reflection of entrepreneurial personality over motivation and mindset of entrepreneurs
Entrepreneurship personality is considered as different aspects of characteristics of
entrepreneurs, personality traits, abilities, attitude, motives and values that gives shape to
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entrepreneurship business. All the factors related to the character of entrepreneur are reflected as
the personality of entrepreneurs.
Impacts of entrepreneurship personality on motivation
Personality of entrepreneurs impacts in the following ways over motivation and mindset
of entrepreneurs.
Take Responsibilities: Entrepreneurs are sole entity of their business organisation so it is
important for entrepreneurs to take entire responsibilities of all the business operations. Taking
responsibilities also reflect about the entrepreneurs motivation and confidence level (Nabi and
et.al., 2017). Due to high motivation level in personality entrepreneurs carry the characteristics
of never give up attitude. For example entrepreneurs Bobby Arora and Simon always look keen
towards taking responsibilities of all the business operation's and decision-making process.
Taking responsibilities is a key approaches utilised by both the entrepreneurs which make them
more successful in the business.
Clear Intent: Entrepreneurs are highly motivated which also drives the entrepreneurs to have a
clear intent in respect to business operation's. Clear intent also enables entrepreneurs to have a
clear thought process and vision. Both the entrepreneurs Bobby Arora and Simon use clear intent
while taking any business decision. Entrepreneurship mostly operate business operations based
on the intents. Both the entreprenurs consisted clear intent from the beginning of the
entrepreneurship journey which also guided them to drive the business operation's effectively.
Stay Focused: Entrepreneurs look always stay focused towards whatever strategies and policy
they frame to conduct business operation's (Pattanaik, 2017). Due to high motivation and
confidence the mind set of entrepreneurs always remain focused towards achieving all the goals.
Stay focus in regard to achieving goals and objective sof business play a key role in achieving
business targets. Entrepreneurs Booby Arora had a focused personality from the initial stage of
the business.
Keep Going Attitude: Entrepreneurs carry the attitude of keep going which is also due to high
motivation level entrepreneurs possess. This is a crucial approach of doing business
entrepreneurs use in order to achieve all business objectives. Both the entrepreneurs Bobby
Arora and Simon use the approach of keep going which also enable them to improve the growth
potential of B&M venture. Keep going attitude of Boby Arora was the reason behind the success.

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Bobby Arora faced multiple failures in the career at the initial stages of the business which make
them more focused toward achieving the business objectives.
LO4
P7. Background and experience hinder and poster entrepreneurship
Entrepreneurs Bobby Arora is among the highly successful entrepreneurs. They
established a successful business venture call B&M. Booby Arora is a self-made business icons
as he do not belongs to rich family (Rey-Martí, Ribeiro-Soriano and Palacios-Marqués, 2016).
Background of Bobby Arora drive him to take suitable decisions that can attract the target
customers in aviation, soft drink, soft toys and software market. The biggest aspect of
entrepreneurship business as entrepreneurs face plenty of failures like in trading in order to build
a successful business organisation that also enables entrepreneurs to experience all aspects of
business sector. Background and experience of Booby Arora supported in retailing supported
him to assess about the needs of target customer effectively. Retailing background of Booby
Arora also drives him to identify the future need of the sector and launch products apparently.
Booby Arora do not belongs to rich background which also supported him to adders the social
needs. Entrepreneurship is all about fulfilling the needs of the society with the services.
Experience of the entrepreneurs play huge role in improving the growth opportunities for
the entrepreneurship business. Entrepreneurs Simon utilised the personal experience in all his
entrepreneurship journey. It has improved the decision making of the entrepreneurs. Experience
of the entrepreneurs has enabled him to understand the needs of society. Entrepreneurs Simon
belongs to poor family which drives him to understand the needs of local people. Furthr in the
entrepreneurship journey he channelized all the experience to improve the outcomes of the
business. Background of the Simon also improved the communications kill which has also
supported the entrepreneur throughout the journey of entrepreneurship.
CONCLUSION
This report concludes about different entrepreneurship venture such as social enterprises,
scalable enterprises, large company and small business entrepreneurship. This report also
concludes about the similarities and differences between entrepreneurship ventures. Potential of
micro and small business in the economic growth of UK has also concluded with the aspects like
among all business organisations 99.3% business houses in UK are considered as small and
micro business houses. Pillars of social economy like mutuals, foundations, charities has
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discussed in this report. Different aspects of personality of successful entrepreneurs has also
concluded based on the visions, leadership and other factors. Personality aspects of entrepreneurs
that made them successful are also concluded in this report.
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REFERENCES
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