Entrepreneurship and Small Business Management

This document discusses the concept of entrepreneurship and its role in the development of the economy. It examines different types of entrepreneurial ventures, their similarities and differences, and the impact of small businesses on the economy. It also explores the characteristics and skills of successful entrepreneurs.

Entrepreneurship and Small Business
Management

1. INTRODUCTION
Entrepreneurship is regarded as the concept of managing as well as forming a business venture for obtaining profitability through considered
numerous kinds of risk within corporate world. In general term, it is the willingness to begin a new enterprise. Moreover, it plays crucial role
into the development of economy in order to expand international market area (Ateljevic and Page, 2017). In this report, the numerous
entrepreneurial ventures, typologies, similarities and differences, impact of small and micro enterprise upon economy. Along with this,
significance of start- up and small business towards social economy development as well as characteristics and skills of entrepreneurs are
explained. Apart from this, experiences and background of entrepreneurs that foster and hinder them are also described in this report.
2. TASK 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the typology of entrepreneurship.
Entrepreneurial ventures are considered as a firm that concentrates upon performing innovation as well as opportunities for developing
economical and social value. It basically concentrates upon facilitating some kind of advisory services to firms. The entrepreneurial venture role
is different from each other that based upon organizational stages. So, it is classifies into various types that are mentioned below:
“Do not think more about being successful but do the work effectually then success will follow you”.- Oprah Winfrey
Serial entrepreneur: This is an entrepreneur who continuously brings new ideas and begins new enterprises.
Owner manager: This is the person who develops and maintains a business person fundamentally for personal objectives.
Intrapreneur: This is considered as a person who is tasked with creating innovative thoughts or project into firm. They do not have to deal
with outsized risks or reap outside rewards of entrepreneurs.
Small entrepreneurship: This is regarded as ventures that are small in size and having some staff as well as capital investment is also
lower. In order to run such business, it recruits competent and local individual’s society for performance of work (Belz and Binder, 2017). It
involves carpenters, hairdresser, consultant, and others.
Large entrepreneurship: These are regarded as ventures that are huge in size as well as acquire market share. These firms develop by
offerings new goods, technologies and many more. In this, products are formed based upon the clients’ requirements. Such as Microsoft, Google
and others.

Scalable start up entrepreneurship: These are the venture that concentrates upon initiating firms with an aim which could be changing
world. It grabs the attention of various financial investors. For performing the business practices as well as operations it recruits competent as
well as brightest staff for working effectively. Such as Facebook, instagram and many more.
Social entrepreneurship: These are regarded as ventures that basically concentrate upon facilitating new offerings in order to resolve the
societal requirements as well as issues. It may be profitability or non profitability or accumulation of both. This develops an effective world
rather than generating profitability for sustaining into society. This involves NHS, Oxfam and many more.
Various entrepreneurial typologies:
There are basically three forms of typology that are explained underneath:
Survival: This is regarded as the enterprises that basically concentrate upon intent of earning livelihoods for family as well as do not
explore operation of business at large level. This involves internet cafe and others (Bennett, 2014).
Managed growth ventures: These are regarded as business that performs by experts who are proficient in creating money. Its main intent
is to get more returns. Moreover, it has been analysed that by considering usages of new ideas, this essentially aims towards facilitating
satisfaction to clients for appropriate assurance of sustainable growth.
Lifestyle firms: In this, the firms that are performing their practices provide products or services to community as well as people in order
to maximise its living standards (Burns and Dewhurst, 2016). The essential intent of it is to render employment opportunities to individuals who
are mainly from local areas.
How the ventures can be classified or related to the different types of Entrepreneurship with examples.
Small entrepreneurship: This is related with survival firms as they have open minded characteristics as they concentrates upon
sustainability at market area. Such as Carpenters, hairdresser, consultant, and others.
Large entrepreneurship: It is related with managed growth firms as both of them take risk and very much focused towards gaining higher
profitability margins. For example: Microsoft, Google and others.
Social entrepreneurship: This is related with lifestyle firms as both of them are flexible in nature which assists them in accomplishing
societal desires and requirements in effective and efficient way. Such as NHS, Oxfam and many more.
Scalable entrepreneurship: This is related to manage growth firm as both of them has innovation characteristics. It concentrates upon
changing the world. Such as Facebook, instagram and many more.

P2 Explore the similarities and differences between entrepreneurial ventures.
The various differences among entrepreneurial ventures are described below:
Meaning:
 Small: These regarded as ventures that are small in size and having some staff as well as capital investment is also lower.
 Large: These are regarded as ventures that are huge in size as well as acquire market share. These firms develop by offerings new goods,
technologies and many more.
 Social: These are regarded as ventures that basically concentrate upon facilitating new offerings in order to resolve the societal
requirements as well as issues. Scalable: These are the venture that concentrates upon initiating firms with an aim which could be changing world.
Objectives:
 Small: The objective of small entrepreneurship is to sustain in marketplace by fulfilling the requirements of clients in appropriate way.
 Large: The objective of large entrepreneurship is to be more competitive by generating innovative items.
 Social: The objective of social entrepreneurship is to operate the business for societal welfare and obtaining more profit.. Scalable: The objective of scalable entrepreneurship is to reach at large audiences by doing evaluation as well as acknowledging their
desires and wants in appropriate and proper way.
Risks:
 Small: It is less risky.
 Large: It is also medium risky..
 Social: It is not so much risky as they have support of government Scalable: It is more risky.

Examples:
 Small: Carpenters, hairdresser, consultant, and others.
 Large: Microsoft, Google and others.
 Social: NHS, Oxfam and many more.
 Scalable: Facebook, instagram and many more.
Similarities:
 Whole entrepreneurial ventures shift towards generating as well as forming products or services with utilisation of innovative and new ideas
(Burrows, 2015).
 The main intent of whole ventures is to gain profitability as well as sustain into marketplace through accomplishing the requirements of
community.
 All entrepreneurial ventures has to undertaken funds from numerous investors for exploring its enterprises at competitive mark area.
 For attaining its business objectives, whole entrepreneurial ventures concentrates upon constant creativity.
3. TASK 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses impact on the economy.
The business plays crucial role into the development of economy. It contributes towards development through forming the required
modification within amenities, technology and many more. These bring prosperity as well as growth within any economy (Chell and Karataş-
Özkan, 2014). There are mainly three kinds of business within business marketplace that are discussed below: Small: Into this, there are around 1 to 49 workers who are perfuming within firm and assist them in accomplishment of objectives.
Moreover, within this, the revenue is about less than £5 million. Though revenue produced through respective firm are low and due to this it
contributes comparatively less.

 Medium: Within it, there are approx 50 to 250 staff who are performing into organisation and its revenue will be between 5- 22 million. This
contributes towards economic development as it produce quite high revenue in comparison to small one.
 Large: these organisations recruit huge number of staff and minimum number is about above 250. It produced profitability which is more
than $22 million. It performs with large amount and facilitates job opportunities to huge group of individuals.
Impact of SME’s upon economy:
Local impact: Both micro as well as small business provides their products to for accomplishing their needs. These firms are framed into
wake of dissecting individual’s needs. By this analysis, business may decide its purchasing power in order to facilitate products base on their
requirements (Fayolle and Gailly, 2015). so, these business likewise provide job opening for individuals so that they can able to obtain cash in
order to improve its expectations related to daily comforts as well as way of life that will likewise assists into development of nearby economy.
Illustration : Role of Start-ups and Small Businesses
(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)

Regional impact: SME’s facilitates employment opportunities to regional individuals. It assists economy to eliminate poverty within its
economy through facilitating job. Moreover, it has effective as well as crucial impact on economy as it aids them to enhance employment rates
which will indirectly maximise the respective country people living standards. Along with this, it also contributes towards revenue generation for
economy.
National impact: the SME’s ha affirmative affects on nation as it assists economy to develop technologies, infrastructures, innovations and
many more that ultimately assists in nation’s development. In addition to this, it also aids in maximising standards of living of individuals who
are living their. As per the survey SME staff are above 15.7 million within UK that highlights affirmative affects of SME’S.
P4 Explain the importance of small businesses and business start-ups to the growth of the social economy
Social economy is developed by rich diversity of several firms as well as business such as foundations, associations and many more who
share common values and characteristics. This is basically created to provide benefits to society appropriately and effectually (Jones-Evans and
Klofsten, 2016). The start up as well as small business aids in country’s social economy growth which develops numerous opportunities at
market area. So, some significance of small and start up business towards social economy growth are explained underneath:
Creating jobs: The small as well as new business produce jobs vacancy into economy at huge amount because of which the local and
regional individuals may obtain job assistance. Moreover, it allows the person to expand more within the field in which it has more forte (Julien,
2018). Facilitating product and services at affordable price to audiences enhance competitive level within market place that ultimately benefits
person or clients.
Economic growth: The ventures that are small in nature or new provide large number of opportunities as it generates higher revenue. It
facilitates products or service of effective quality and at reasonable price to become competent enough to pay taxes to government with help into
economical development as various respective country government can able to build infrastructure and others (Katz, 2014). Moreover, these
taxes assists economy to become financially strong, these formed motivations in another business person that outcome in initiating its own
business for gaining more profitability.
Innovation: With the help of innovation into marketplace, small or start up business assists to develop economy. Both of them do not has
to undertaken any permission to initiate any new things. This aids to pool the individual’s talent who innovate new items as well as also
identified solution to exiting one. Moreover, this also aids firm to be distinguish from another one.
Base upon above analysis, this came to realise that the new and small business commitment towards economical development are huge through
contributing towards economy.

TASK 3
P5 Determine the characteristic traits
and skills of successful entrepreneurs that
differentiate them from other business
managers.
Various characteristics, traits as well
as skills are significant for entrepreneurs for
setting up business and maximise their
growth. For establishing an enterprise,
numerous processes required to be
undertaken through entrepreneur as well as
those required to be accomplished single
handed (Scarborough, 2016). So, the
characteristics, traits and skills of Tom
Mercer are described underneath:
Tom Mercer
Characteristics:
Hard worker with dedication: It
is the essential characteristics that an
entrepreneur should have as this helped
them to perform effectively and obtain
success. For example: Tom stay late
night for manufacturing smoothies so
that it have sufficient stock for selling it
various areas and also kicked out from
many place but did not give up.
Traits:
Expertise at networking and
passionate: As Tom initiates two new
sites one into Vauxall and another one in
Canary Wharf. In year 2008, he had 9
stalls. Also, he develops relations with
various firms that drives him towards
making contracts with Ocado, Virgin
Atlantic and others.
Skills:
Managing skills: After 4 months of
MOMA opening, it had developed as well
as there was only few staff so the night shift
were given to other one. Also, it become
more recognisable and signs some direct
potential clients to MOMA
Difference between entrepreneurs and
business manager
Standing into firms:
Entrepreneurs: It is a visionary which
transforms ideas into a business (Schaper,
2014). Also, they are considering being the
owner
Business manager: They are the
employee of firms where it performs fro
salary.
Focus:

Entrepreneurs: Its focus towards
initiating a business and thereafter exploring
it.
Business manager: Its focus is upon
regular operation of business in smother
way.
Key motivation:
Entrepreneurs: The key motivation of
entrepreneur is achievements.
Business manager: Whereas the key
motivation of business manager generally
comes from its position and power.
Decision making:
Entrepreneurs: The decision making
of entrepreneur is intuitive
Business manager: The decision
making of business manager is Calculative.
P6Assess how aspects of the
entrepreneurial personality reflect
entrepreneurial motivation and mindset.
Individuals entrepreneurial
personality is vital for establishing a
business as well as be encouraged to
deal well numerous issues and risks
related with this. This includes traits by
which person may formed new ideas and
execute it to obtain revenue (Storey,
2016). So, for this OCEAN Model is
used for reflecting entrepreneurial
motivation and mind set. It includes five
traits that are explained below:
Openness: As to ensure
effectiveness success, it is vital for
entrepreneurs to has trait such as openness.
As it aids them to maintain the balances
among adventures and emotions at firm’s
structure.
Conscientiousness: This is the
personality trait that helps entrepreneurs to
perform their practices in more flexible
manner. As it includes the traits like highly
organised, logical and others.
Extroversion: This is the kind of
personality traits which creates appropriate
connection with people in order to maintain
formal relationship within its workers.
Agreeableness: In order to get
success for ventures, it is crucial for
entrepreneurs to formed trust with its staff.
It is beneficial for them for influencing its
workers to be agreed on all decisions which

are developed by them for effectualness of
organisation.
Neuroticism: This personality traits
is vital for entrepreneurs for undertaking
neutral decision taking within complex
circumstances. This permits them to solve
the person and workers grievances in more
appropriate manner.
Thus, all above personality traits are
helpful entrepreneurs to become successful
properly and appropriately. So, Tom Mercer
has extraversion as well as openness
personality traits. For example: if he did not
holds these traits so he can not stay late for
producing 200 smoothies bottles. Moreover,
he was inspire to innovate something new as
well as after considering optimistic
feedback from clients he become capable to
pull himself to develop.
TASK 4
P7 Examine, using relevant examples,
how background and experience can
hinder or foster entrepreneurship.
Entrepreneurs generally maintain
is ventures for obtaining advantages
through facilitating its products or
services to its audiences. Its experiences
as well as backgrounds motivate them to
get maximising involved with its works
that controls its enterprises towards
accomplishment (Zacca, Dayan and
Ahrens, 2015). So, the background and
experiences of Tom Mercer is
mentioned below:
Background: Tom Mercer was
graduated from Cambridge University.
Also, they has experiences of filling in as an
consultant of management within Bain &
Co. that is established in London. While
performing with numerous firms, he usually
undertakes new ideas by which he may
initiate his new ventures. While performing
in consistent way, he saw that person have
some alternatives for its supper & lunch
however preferences for its morning meal
are bounded. He obtains idea of starting his
own business and began its enterprises in
year 2006 through integration well

beingdrinks that incorporates smoothies and
oats. Gradually his ventures boosted as well
as were using in excess of 25 people till
year 2009.
Experiences: He is having
experience of performing as a city labourer,
which states battles of individuals in
obtaining sound breakfast while going to
such type of task. He regularly goes late as
well as undertakes new ideas for outcomes
of its enterprises. Within underlying time,
he cuts natural items by himself during
evening time as well as place them into jugs
for providing to customers. Also, in
additional manner he sold his products at
railroad station to decide pre-requities and
influence consumers so as to provide items
in effectual way.
So, through its experiences and
background, Tom Mercer obtains
gainful in its enterprises as well as
defeats the problems and disappointment
for remaining focused upon business
development. Due to its constant centre,
it accomplished ideal results for
attainment of its objectives within
marketplace.
Some more example of entrepreneurs
are Ren Zhengfei, Bill Drayton and others.
CONCLUSION
As per the above report, it has
been concluded that entrepreneurship
plays crucial role into the development
of economy in order to expand international
market area.Moreover, various
characteristics, traits as well as skills are
significant for entrepreneurs for setting up
business and maximise their growth. So,
some major traits and skills are hard
working, confident and others. Along with
this, Individuals entrepreneurial personality
is vital for establishing a business as well as
be encouraged to deal well numerous issues
and risks related with this. Apart from this,
the experiences and background plays
import role for fostering the entrepreneurs to
become successful.
REFERENCES
Books and Journals
Ateljevic, J. and Page, S. J. eds.,
2017.Tourism and
entrepreneurship. Routledge.

Belz, F. M. and Binder, J. K., 2017.
Sustainable entrepreneurship: A
convergent process model.
CONCLUSION
As per the above report, it has been concluded that entrepreneurship plays crucial role into the development of economy in order to expand
international market area. Moreover, there are various kinds of entrepreneurial ventures such as large, small, and scalable and others. Also, some
typologies survival, lifestyle growth and many more. Also, all are distinguish from one another but also there are similarities among them. Along
with this, micro and small business plays crucial role into the development of economy. It contributes towards development through forming the
required modification within amenities, technology and many more. In addition to this, starts up small business commitment towards economical
development are huge through contributing towards economy.