Entrepreneurship and Small Business Management

This study explores different types of entrepreneurial ventures, their similarities and differences, and their impact on the economy. It also highlights the importance of small businesses and startups in the growth of the social economy.

UNIT- 9
ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................................3
Examine different types of entrepreneurial ventures and how to relate to typology of
entrepreneurship.....................................................................................................................................3
Explore similarities and differences between entrepreneurial ventures................................................5
Interpret and assess relevant data and statistics and how micro and small businesses impact on
economy..................................................................................................................................................7
Explain importance of small businesses and business start-ups to growth of social economy................9
Determine characteristics traits and skills of successful entrepreneurs that differentiate from other
business managers................................................................................................................................10
Assess how entrepreneurial personality reflect entrepreneurial motivation and mindset...................12
Examine relevant examples how background and experience can hinder or foster entrepreneurship.13
CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................16

INTRODUCTION
Entrepreneurship and small business management defines to an efficient term which
gives the skills and unique ideas related to operating the business and help the person to become
an entrepreneur. It helps in managing the new ideas and applying those to create a successful
new enterprise that offers innovative goods and services to satisfy the customers and make high
amount of revenues. This study includes the different extent of venture types with their
similarities and differences. It also helps in showcasing the data and statistics that helps in
illustrating the effect of micro and small businesses on economy and value of small business and
start-ups in the growth and development of social economy. It also inculcates the key aspects that
helps in mindset the entrepreneurial and how different environment foster and hinder
entrepreneurship(Entrepreneurship - Types of Entrepreneurship, 2020).
Examine different types of entrepreneurial ventures and how to relate to typology of
entrepreneurship
Entrepreneurship: It defines to an approachable term that helps in setting the enterprise by
taking the monetary risk for earning the profits. It is a capacity to enhance, mange and organize
the venture along with the risk and the best example of the entrepreneurship is start-up
business(Venkataraman, 2019).
Entrepreneurs: It defines those individuals who are accountable and responsible for operating
the new venture where they offer goods and services to the society for earning high money and
profits. This helps the person to increase their living standard and with more high respect.
Enterprise is operated by the business and with the motive of gaining high net profit by fulfilling
the demand of the society people and according to the demand of the business environment. It
includes various types of entrepreneurship such as owner’s managers, social enterprise, large
business enterprise etc(Solomon, Alabduljader and Ramani, 2019).
Entrepreneurial activity: It defines the human actions in the enterprising that generates the
value related to creation and expansion of the economic activity. In this, entrepreneurship is
generally linked with the entrepreneurial activity. This activities helps in converting the ideas
into the meaningful functions that gives the benefits to the society and the enterprise itself. It
helps in economic growth in the country(Dvouletý, 2019).

Different types of ventures
 Owners-managers: It refers to that business enterprise which is affiliated to the small
business ventures as they are working with limited resources and workforce. In this they
can offers good quality goods and services that the customers can enjoy and venture can
earn high profits and revenues. This type of enterprise contributes in the economy of the
country. This type of businesses can collect their funds from their family and friends and
also by taking small loans from the financial investors of the country.
 Large business: It refers to those business enterprises that are having their operations
with large number of workforce and high amount of capital and recourses. This type of
business venture done their trading on the international level where they run their
operations in an effective and smooth way. They always work for customer’s satisfaction
due to this they can earn high amount of profits and revenues with longer sustainability in
the marketplace. The best example of this type of enterprise is Google, Microsoft and
Tesco etc(Akpan, 2020).
 Social enterprise: It defines that business enterprise which is working for the welfare of
the society and their interest. In this businesses are offering new and modern ideas for
solving the problems of the society and improve their living standard. They majorly not
target the profits but they are working for the contribution in the development and
enhancement of the society. The best example of this type of organization is the BBC.
Typologies of entrepreneurship
Entrepreneurship typology refers to the term which is used to classify the basis of
entrepreneurship that helps in operation s of the organisation in a more effective way. some
typology of entrepreneurship can be shown underneath(Ficko and et. al., 2019).
 Lifestyle enterprise: This term defines to that type of entrepreneur typology which can
helps in increasing the living standards of the local community people where they
established their ventures and they also helps in providing the effective opportunities of
the job to the person in then local area that is called the social ventures.

 Growth firms: It refers to those business entrepreneurs that are designed for gain high
profits and revenues and also longer sustainability of the firm. They are always working
for new and innovative ideas that help in longer growth by satisfying the needs and
demands of the customers. In this type of entrepreneurs small and large entrepreneurship
are indulged.
 Serial enterprise: This type of entrepreneurs is working for always new and unique
ideas and invests their money in the innovative ideas. This type of entrepreneurs is
generating funds very easily for the venture capitalist etc. they mainly contributes in the
economy of the country.
Explore similarities and differences between entrepreneurial ventures
Differences between entrepreneurial ventures can be shown below-
Basis: Criterion
Small business- This type of enterprises are operated their business on a small scale where they
invest low amount of resources and capital(Lauto, Pittino and Visintin, 2020).
Large Business- It refers to that company which are operated on the large scale with a lot of
capital and workforce where they perform their activities in an appropriate manner.
Social business- It defines those enterprises which are operated for fulfilling the necessarily and
demands of the society and they are operated in the local level and save the living standards
without focusing on much profit.
Basis: Objectives
Small business- The major aim of this kind of venture is that they earn income for satisfying the
needs and desire for their family members and their comfort.
Large Business- It refers to that business firm which work with the finest motive of earning
more profits with longer sustainability by providing the satisfied products to the customers.
Social Business- In this type of enterprises people are working for the increasing the living
standards of the society and solve the problems of society people in an impressive manner.

Basis: Features
Small business- The main feature of this type of organization is that they are working with low
resources and capital with low government intervention.
Large Business- Large company work with high amounts of profits and capital and with more
intervention of the government of the country.
Social Business- In this social enterprise finance is generated from the government and by
getting the donations so that they can provide benefits to the society.
Similarities between entrepreneurial ventures can be shown underneath:
Basis: Fulfilling the needs
Small business- Small business enterprises are working for fulfilling the of necessity of the
customers by providing effective goods and services.
Large business- Large business work for satisfying the needs of the customers for getting
sustainability in the marketplace.
Social enterprise- They are working for satisfying the needs of the society people in an
innovative way.
Basis: Forming social uplifting
Small business- This type of venture can provide the best opportunities to the people of the local
areas.
Large Business- This type of enterprises are working for the innovative ideas and giving the
best opportunities on the large scale to all areas people.
Social enterprise- In this people are working for their mutual interest where they increase the
living standards of the peoples.

Interpret and assess relevant data and statistics and how micro and small businesses impact on
economy
Different kind of business enterprises are working for the growth and development of the
economy and they also impart in the infrastructure of the country and also impact positively in
t5he living standard of the people and the economy of the country. It involves basically three
types of organization that can show below.
1. Small business: It refers to that business firm which are working for earning high profits
with less than 50 workers and they earns a profits which is less then £5 million. but due
to Brexit this type of businesses create a positive effect on the economy by providing the
employment and creating new goods for the customers. This type of businesses gives the
three fifth of the employment in the UK to the that is related to the private sector field.
Total employment is given by SME firms is 16.6 million. That will helps in enhancing
the growth of the economy(UK Small Business Statistics. 2020).
 Medium business: It refers to those types of enterprises which are working with more
than 50 employees but less then the 250 workers. As it helps in satisfying the needs of the
consumers and earns net worth of the £5 million to £22million. as they highly contribute
in the economy of the country.
 Large business: It refers to that firms that are working with the large capital and
resources and provides the goods and services in an innovative form. they majorly
contributes in the economy of the country by paying higher tax and provide employment
on the large scale.
Impact of SME on economy

Figure 1- start-ups roles and small business in nation
 Local level: small and start-up business may effect heavily on the local economy of the
nation. because they serves goods and services to the society people as per their demand
and due to this local communicate people get their products as per their desires so that
enterprise may earn high profits and revenues. it also provide occupation to the local
people this will assist in raise the living standards of the people and due to this spending
power may increase and this will benefited the whole economy and also develops the
local conditions(Genc, Dayan and Genc, 2019).
 Regional level: Small and start-up businesses can create an effective impact on the
regional level as they provides the employment for many peoples and due to that
unemployment rate can be reduced and this helps in increasing the purchasing power of
the persons. it also helps in gives more new opportunities that helps in internationalize
their business unite with their innovative ideas and attracts large firms to invest so that
they can enjoy large profits and this indirectly impact on the economy of the UK.
 National level: In national level small and micro business may impact positively by
developing the infrastructure and schools that is the major of the economy of the country.
in this SME companies are working with the unique and innovative goods that can
benefits the customers and the GDP of the country. Due to this country can place their
image on the high level because they encourages the small and start-ups business with is
very trending part in the UK.

Explain importance of small businesses and business start-ups to growth of social economy
Growth of the country is depending on the contribution of the organization and start-ups
in the GDP of the country. Because of this business enterprise many job opportunities are
rendered to the peoples and due to this employment rate may be eliminated. This reflects positive
outcome for the nation and also helps in encouraging the people to boost their skills and
knowledge so that they get best job role that helps in enhancing their living standards.
Social economy: It defines the branch of the economy that can rendered the relationship
between the economy of the country and the social behavior by analyzing the norms, cultures
and perceptions of the peoples and this helps the small and start-up business to shape the
customers behavior and encouraged and increase the buying behavior of the people in the
nations. It places an major importance in the growth and developments of the economy of the
social and the country basis that can be shown below. This term is create a major role in
innovation within the country so that nation enjoys the large economy benefits and society can
enjoys the high standard of living.
Importance of small business and start-ups business in the growth of social economy
 Providing employment : the major standing of the small and start-up businesses is to
create the more and more job opportunities in the countries where they operates their
business units because they need large amount of the employees for completing their task
and this helps in enhancing the way of living of the people by providing jobs and salary
so that they can spend their incomes in the purchasing of goods and services and all this
benefited the social economy in financial terms (Ashraf and et. al., 2019).
 Enhance standard of living: Start-ups businesses and the small enterprises major
importance is that it helps in enhancing the living standards of the peoples by providing
quality goods offerings at the reasonable price so that customers can easily afford it and
enhance their status in the society and the geographical reasons. This helps in enhancing
the social economy that shows the satisfaction level of the people with the offerings of
the start-ups and small business ventures(Fuchs, 2019).
 Economic growth: The main importance of small and start-up businesses is that they
majorly contributes in the growth of the economy by providing the quality pro9ducts and

services and also creates more opportunities for the people that assist in heighten the
monetary value and this will benefited the growth and development of the economy. in
this business venture can work for satisfying the needs of the customers so that they can
attracts the large number of people in smaller time and this will helps in paying the tax
that will helps in growth of the economy and in this high living standards helps in growth
of the social economy.
 Meets the social purpose- Small and start-up business majorly work for fulfilling the
social purpose by proving more and more job opportunities to the unemployed peoples
and also provides the goods and services as per the demands of the customers in an
innovative way without giving the problems to the resources of the society. this will work
by maintaining the culture where they operates their businesses.
 Innovation- It is one of the major importance of social economy because due to
innovation people skills and knowledge will enhanced and due to this they can earns a
high amount of profits and this will benefited the economy and other local people by
providing the employment to them(Innovation.2020).
By analyzing the above facts and figures it is to be analyzed that small and start-ups business
venture plan an major contribution in the enhancement of the economy growth of the country by
offering the innovative goods and services to the people so that they get attracted towards it and
it also inculcates the employment opportunities so that purchasing power of the people this will
helps in increasing the GDP of the economy and it also increase the image of the country into the
world.
Determine characteristics traits and skills of successful entrepreneurs that differentiate from
other business managers
To become a prospering entrepreneurs, Individuals have some verities of skills,
characteristics and traits that helps in becoming the leading entrepreneur and in UK there are
many entrepreneurs that are having their own skills and features that helps in easily identifiable
from the crowd. So of the characteristic, traits and skills of major two entrepreneur can be shown
below that is Elizabeth Gooch and Tom mercer.
Characteristic

 Passion: It is the major characteristics of the entrepreneur that shows the abilities and
capabilities of doing the work beyond their level and capacities. And these characteristics
are belonging to both the entrepreneurs that is Tom Mercer and Elizabeth Gooch that
helps in becomi8ng the successful entrepreneur in the UK and show their presence in the
global market. This characteristic is totally different from the manager because manager
is not showing their passion seriously as they working in the working as an
employee(Akhmetshin and et. al., 2019).
 Hard-working and flexible: This characteristic of the entrepreneur show them highly
organized and their effective style of working so that they can show their confidence and
capture the growth of their personal and professional development. In this both the
entrepreneur that are Elizabeth and Tom can show their effective style of working that is
flexible nature so that they can adopts the change very frequently and work hard to make
belief on themselves this helps in becoming the successful entrepreneur. this
characteristic of an entrepreneur is different from the other business manager as they
cannot show their flexible nature and hard working skills towards their company more as
compare to entrepreneur because they are working under the entrepreneur due to this they
follow the orders to them.
Traits
 Networking: It refers to that traits of an entrepreneur in which they will create a strong
network with the peoples and large business organisations so that they will capture more
new opportunities and profits in their business life and also enjoy high image in the
business world. In this both Tom Mercer and Elizabeth Gooch is the best network creator
and due to this they can capture the large opportunities in enhancing the business unit.
this trait is different from the other business manager traits because managers cannot
create network without the permission of the entrepreneur because they are the working
employee in the organisation(Şahin, Karadağ and Tuncer, 2019).
 Confident: It is an essential trait of an entrepreneur so that they can take the decisions in
an effective manner. In this both Tom and Elizabeth are very confident and this helps in
taking the strong decisions that helps in earning more profits and revenues in an

prominent way. This is different from manager as they are not much confident about their
decisions and due to this they are only an employee within the business.
Skills
 Innovative skills: It is an important skill of an entrepreneur that provides the effective
and efficient ideas to the problems that was occur in this both entrepreneur Tom mercer
and Elizabeth Gooch both have an innovative skills due to their they can operates their
enterprise in an innovative way and become a successful in the UK. This skill is different
from managers as they only things for a particular task but entrepreneur can thinks about
the entire related task that helps in becoming successful.
 Communication skill: It is a significant skill of an entrepreneur as it can build under
both the entrepreneur i.e. Elizabeth Gooch and Tom mercer because it helps in maintains
the large relations in the business world and also helps in encouraging the employees for
effective work. in this manager is different from entrepreneur as they only communicate
with their subordinates but entrepreneur can communicates with all the employees and
other stakeholders that was present outside the company.
Assess how entrepreneurial personality reflect entrepreneurial motivation and mindset
Characteristics, skills and traits of an entrepreneur help in distinguish them from other
people and to understand their personality this report inculcates the OCEAN model that can be
shown below.
 Openness: It is related to the open minded people who are very curious to explore new
things and innovate that help in taking the opportunities in the business. it shows the
positive implications as both the entrepreneur Elizabeth Gooch and Tom mercer are high
on this personality traits due to this both become successful in their own terms(Adcroft
and et. al., 2019).
 Conscientiousness: It shows the results related to productivity and reliability in this both
entrepreneurs Elizabeth and Tom have fulfills this personality trait so that they can
achives the targets in an effective way and become successful.

 Extroversion: It shows the extrovert nature that represents energetic behavior of a people
in the society in this communication and networking skills of Elizabeth and tom more
emphasized and due to this they maintain their relations with stakeholders .
 Agreeableness: It shows the trust and cooperation skill of an entrepreneur that helps in
managing and maintaining the friendly relations with the people so that it will benefit the
business of the Elizabeth and Tom.
 Neuroticism: It can show the fear and emotional stability of a person. In this both
Elizabeth and Tom are controlled their emotions and solve the entire situation in a natural
way. This helps in encouraging their employees for effective work.
Examine relevant examples how background and experience can hinder or foster
entrepreneurship
Tom Mercer
Background: He studied the higher education in the Cambridge University. After
completing the education Tom can working in the brain and co. on a management consultation
position in London as he is an innovative thinker that helps him to open a new venture on their
own so that they cannot do any job. He is interested in the food and beverage business because
he analyzed that in this sector there are more opportunity is present in market and where they
provide healthy food and beverage that will safeguard the customer’s health and encourage
customers to visit their venture.
Experience: As first he started with the job in the local area where he experience many
people struggle for earning money and high their living standards at that time they find place to
take lunch and breakfast. Due to this time frame Tom can the idea to do a business of providing
healthy food meals and drinks for people. From their early time his sales the fruits on railway
station and present it to customers in an innovative way, So that they can connect with larger
audiences.
Elizabeth Gooch
Background: at the early stage Elizabeth started to do a job because she is not belongs to
a high family. From her first job at HSBC she collected some money and find new job in

consultancy firm. after sometime she fed up to do a job and thinks to open their own business
venture for this she collected the money from their friends and family and operates their business
where she provides the learning skills related to the consultation and business firm. to enhance
the business unit she started their connection with large business organisation where they finds
skillful and experienced person so tthat she appointed as a chairmen of her enterprise.
Experience: Elizabeth started working because of their family that face the financial
crises and at that time her father told her to find a job after sometime she operated their business
and place them on the high place. At that time she gets a chance to meet with the Rodney Baker
Bates that gives him idea to do a business that is based on software development. Where they
invest large investors with their new ideas and become a successful entrepreneur.
Martin Riddiford
Martin created the pineapple sized lamp after seeing that most of the people are also
using kerosene lamps in many countries to save the lives of the people and welfare of the society.
Their innovation is very helpful for the society and he is the best social entrepreneur in the UK.
He created lamp that is eco friendly and light weight as compare to the kerosene lamp. His
innovation helps in becoming the successful in the country and also contributes in the social
economy. He worked in a partnership with Jim Reeves with the aim of creating the sustainable
life for the people by providing electric lamps on reasonable price. This will also benefited the
environment. IN 2012 he finally come with the functioning prototype after that set up with the
new website that is crowdfunding campaigning. This helps in becoming the more successful in
their life by fulfilling the needs of people who are live in the society.
CONCLUSION
From the above research report it is concluded that entrepreneurship is a prominent term
to start a small business enterprise and become a successful in the country so that it helps in
enhances the profits and revenues of the firm and increases the economy of the nation. it
inculcates the various types of entrepreneurship and their typologies that helps the country in
their own way. it also suggest the similarities and differences between entrepreneurial ventures
and impact of small and micro business on the economy. It also inculcates the importance of
small and start-up business in the social economy and key aspects of the entrepreneurs that helps

in becoming the successful like passion able, Visionary, flexible etc. so that they earn higher
profits as per their capabilities and at last suggest the facts that can hinder and foster at the time
of becoming the successful entrepreneur in the country.

REFERENCES
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Ashraf, M.M., and et. al., 2019. Social business as an entrepreneurship model in emerging
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Dvouletý, O., 2019. Development of entrepreneurial activity in the czech republic over the years
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Solomon, G.T., Alabduljader, N. and Ramani, R.S., 2019. Knowledge management and social
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