Unit 9 - Entrepreneurship and Small Business Management

Unit 9 (Entrepreneurship and Small Business Management )

INTRODUCTION
Entrepreneurship is the procedure of scheming, propulsion and moving a business from
little to big and the group who create this type of concern is known as entrepreneurs. The report
will assessing how they assess the business and reach those business at further level of success.
The report is based upon the case scenario of Make it Work which is a global consultancy firm.
Report will describe various kind of businessperson ventures and also show how they relate with
the classification of an entrepreneurship. Further, it also assesses micro and small business that
create impact upon the system of UK. Apart from this, study will describe the importance of
small business in the social economy and describe the trait and skills of Bill Gates and Henry
Ford and present how they are differed from other managers. Lastly, report will describe how
inheritance and education can impede and surrogate entrepreneurship.
P1
Entrepreneurship is the process of
launching and developing the business
venture and taking financial risk for the
business. Therefore, there are various kind
of entrepreneurship which are as mention
below:
 Small business entrepreneurship:
This type of entrepreneurs is mostly
or barely profitable, and they only
make their profit with an aim of
fulfilling the needs of their families.
(Burns and Dewhurst, 2016). For
example, hairdressers, grocery
stores, electrician. In UK, there are
big number of small business
entrepreneurs who run their
business. For example, Mainstreet
Trading Co which is small firm in
UK who operate in retail industry.
 Large Business entrepreneurship:
This type of entrepreneurs mainly
provides innovative products and
offer new product to their
customers, their chief motive is to
gain net and grow their actual
concern at high level. That is why
they provide new products in order
to meet the supply of their
customised and advance technology.
For example, Google, Microsoft etc.
 Scalable start-up
entrepreneurship: This type of
entrepreneurs start their company
with an aim of changing the world
by providing different innovative

products, that is why they hire the
best employees and collect fund
from the venture capitalist (Burns,
2016). They also take risk and
outsize return by make-up small
proportion of business. For example,
Facebook, Instagram etc.
 Social Entrepreneurship: This
type of enterpriser mainly works to
work out the cultural necessarily
and job. They can be non- profit and
profit and hybrid. For example,
NHS who work for the welfare of
the company and provide best
services to solve the social needs.
Typologies: There are different typologies
which are also related to the entrepreneurial
ventures such that these large business
entrepreneur is also directly related to serial
entrepreneurs, while medium
entrepreneurship is also related to copycat
entrepreneur which are as mention below:
 Serial entrepreneurs: they are
those entrepreneurs who are
continuously uses their new ideas
and start their business with new
ideas. It has been analysed that this
type of entrepreneur also often come
up single idea so that it will help to
run day to day functioning.
 Copycat Entrepreneurs: this type
of entrepreneur analyse the
occurrence of others and then
attempt to transcript them exactly so
that they will also lead their
business to further level of success.
Though their skills are different, but
they use the strategy same which the
successful entrepreneur adopt
(Chowdhury, Audretsch and
Belitski, 2019).
 Craftsman Entrepreneurs: they
are those entrepreneurs which might
analyse the problems and analyse
the problem that make decision
totally in different manner so that it
will help to lead their business in
positive direction.
P2
Similarities: All the entrepreneurial
ventures have similarity such that their
main aim is to serve for the customers such
that it provides the best quality of products
to the customers, thus it shows that they all
work for earning profit for the company.
Apart from this, all the entrepreneurial
ventures provides goodwill for their
business and creates a brand value. In
addition to this, they all work for creating
brand reputation in the market and it has
been also analysed that they all contribute

directly or indirectly to the ontogeny of the
system and by developing an effective
organization structure which help to growth
of a business. Entrepreneurial ventures also
mainly focus on property improvement by
direction in their rivals and also developing
the agonistic vantage.
Differences:
Factor1: Goals and Objectives
 Small business Entrepreneurship:
This did not have organized end but
it plant on accomplish less
profitability and growth.
 Scalable start-up
entrepreneurship: Its main aim is
to provide advanced good and attain
high gainfulness for their investor
(Dees, 2017).
 Large company entrepreneurship:
Its main aim is to maximize the
profit by providing high quality
products.
 Social Entrepreneurship: Its main
goal is to provide high quality to
make the world better and
innovative.
Factor 2: Risk
 Small business Entrepreneurship:
Risk is bunk but rivalry is high with
its rivals.
 Scalable start-up
entrepreneurship: Risk is high
because of high amount of finance
and pressure to high return.
 Large company entrepreneurship:
Faces medium risk because large
firm did not sell high volume of
products.
 Social Entrepreneurship: Risk is
not too high because it requires high
support from government.
Factor 3: Employee number
 Small business Entrepreneurship:
It did not have more than 50
employees.
 Scalable start-up
entrepreneurship: Not fixed
because it depends upon structure of
company.
 Large company entrepreneurship:
Can be more than 100.
 Social Entrepreneurship: Depend
upon the size of a business.
Factor 4: Structure
 Small business Entrepreneurship:
Did not have proper structure.
 Scalable start-up
entrepreneurship: Followed
corporation and limited partnership.
 Large company entrepreneurship:
It can be constricted and private

limited company (Estrin and et.al.,
2019).
 Social Entrepreneurship: Trustee
based firms.
P3
Micro, small and medium size
business are small size entities which are
defined in the terms of their size as well as
investment. Small business boosts the
economy of UK such that they contribute
their biggest part for the welfare of the
economy. Micro and small business boost
up the local economy in different ways such
that: Turnover: Small and micro business
aid in mensuration the economic
part such that in 2018, small and
micro business provides the
turnover up to £2.0 trillion (Role of
small busines in the growth of UK
economy, 2018). Therefore, it has
been analysed that small and micro
business contribute their small
amount for the growth of an
economy by assisting its financially. Employment: It not only help in the
economy in the term of money but it
also provides a job opportunity.
Such that sole bargainer who work
severally and small and micro
business also make a huge part with
regard to Employment in UK. Such
that as per market research This it
shows that it also contributes to
decrease unemployment in UK.
Illustration 1: Figure 1: Growth of
small business
(Source: small business in UK, 2018)
From the above graph, It has been
further analysed that small business plays a
significant role in the growth of a business
such that it helps o creates job for the
person and small and micro business are
especially accountable for 99.3% of total
clubby body business in 2016, on the other
side, it has been realized that small business
are also positively contribute to the growth
of an innovation. This also helps to stay
competitive in the market and also helps to
flourish fresh thought that helps to the
success of a business, which directly
contribute for the growth of economy (Hitt
and Duane Ireland, 2017). Small and micro
business also provide different products and
services to their customers such that most

of the small business people are engaged
themselves in the individualized services as
well as professional services like financial
services.
P4
Social economy mainly is also
growing in UK because of small business
start-up, because the business provides
different job opportunities to the individual
so that it will help to strengthening the
skills and employability, also build
diversified local economies and then
contribute to the wider economic
transformational as well. That is why small
businesses are considered the backbone of
UK economy as well as social economy
such that its open new market and provide
different job which contribute the growth of
the economy (Kirzner, 2015).1
In addition to this, small and micro
business also help to improve the social
economy and creates positive outlook for
the growth. Most of the people in UK are
engaged in the agricultural cooperatives and
through this, it develops the personal
relationship as well with the customer,
employees and suppliers. It has been
analysed that person to person action is
quite crucial to maintain powerful relation
and it also creates impact upon the social
economy of UK as well.
In addition to this, many start up
also link with antithetic types of CSR
activity which are also related to the
environmental and system trouble which
are help to enhance brand value. (Kuratko,
2016). So that they can use that teaching in
their approaching to get better opportunity.
In this way, small firm will easily
contribute to the cultural system as well as
GROSS DOMESTIC PRODUCT of the
state. Even there are many start up who are
not able to provide high salary to their
employees and that is why the recruit low
skilled workers. Therefore, it directly helps
to remove the unemployment problem in
UK. It has been further analysed that small
business also provides an innovative
product to their customer and by analysing
the needs of their customers they provide
products which helps to create positive
impact upon social economy of UK.
P5
Trait of Bill Gates:
 Courage: Bill gates is the CEO of the Microsoft Corporation, and he has a lot of courage,
and he was never given up even he was about to lose a lot of profit from his firm. He also
donates some money which shows that he works for the society as well. This quality

make Bill gates differ from the managers (Ryff, 2019).Risk taking ability: He also has
risk taking ability and always learn from failure. He is also aggressive and pursue
everything with a single-minded determination. Apart from this, he also motivates their
team members and listen their personal as well as professional problems. This traits make
him differ from managers.
Skills of Bill Gates:
 Communication skills: Bill Gates have effective communication skills which help to
motivate their team members. Further he also possesses strong vision so that it will help
to lead his business towards further level of success. Gates also have an ability to raise
money, and he has the ability to identify his own strength and weakness.Motivational
Skills: Whenever, he feels, the productivity of the company declines, he provides
effective training session to their employees because he possesses motivational skills that
makes him differ from managers (Storey, 2016).
Trait of Henry Ford:
 curios and persistent :Henry Ford is the founder of Ford Motor Company. He is curios
and persistent with regard to their work, and he also possess self- confident as a personal
trait which help him to run a successful company.
 Creative and open mind: He is also creative and open-minded in his own work that is
why he also innovates new products in order to meet the needs of the customers.
 Discipline: Apart from this, he is disciplined and always motivate their employees so that
it will help to increase the productivity in the firm. Apart from this, Ford also possess
strong relationship with their employees so that they feel comfortable in the working
place (Venkataraman, 2019). Thus, this personality trait of Ford makes him different
from managers.
Skills of Henry Ford:
 Strong vision: Henry Ford possess the ability to focus on their customers and then
provide innovative products to their customers so that it will help to increase the sales
and turnover of the firm. Apart from this, he also has a strong vision that makes him
different from managers.
 Learn from the failure: He also deals with failure and state that a person learns only
from his own failure and having a risk-taking ability also makes Henry different from

others. He also wants to make the world digitalized and that is why, he tries to make
innovative cars in order to improve the world.
 Motivational skills: Further, he possesses strong motivational skills as well as
communication skills that helps to influence others and through his technical skills,
Henry Ford can tackle string or complex issues in simpler way.
P6
In this, Ocean Model is used which is the taxonomy for the attribute traits and it is based
upon the five personality traits such as spacing to education, conscience, extroversion, amenity
and Disturbance. The entrepreneurial personality of Bill gates is considering an essential part
which helps to set up the business and also deal with different problems as well as risk.
Therefore, he is consider in Openness to experience. Therefore, these entrepreneurial
personalities mainly involve the trait through which an entrepreneur can generate new thought
and this directly helps to generate revenue for the firm as well. For example, Bill Gates set up its
business and now he is CEO of Microsoft Corporation because he is passionate and have
motivational skills that helps him to set his mind as an entrepreneur. Such that he firstly set the
goals and mission and then develop strategy that helps to set up new business, this clearly reflect
the second factor of ocean model that is Conscientiousness. Thus, it has been analysed that
through self-motivation and possessing the risk management ability helps to achieve the goals
continuously.
In addition to this, it has been analysed that Henry Ford having an feature of
Agreeableness, as he has a good and strong communication skills which help to set up his own
business. Along with this, he also has an innovative idea and strong vision which help to
innovate different products for their customers. Apart from this, he also has a strong motivational
skill which helps to deal with the risk and plan and take the business at further level of success.
His effective management skills also reflect the entrepreneurial motivation as well as mindset
(Wiklund and et.al., 2019). Therefore, it has been analysed that having an effective neuroticism
personality trait will help to manage the organization and also deal with the conflicts in effective
way so that he can learn from different their failure. Both entrepreneurs have a strong vision that
helps them to identify the success and risk factor for their business.

P7
Background and education both back and surrogate the entrepreneurship because it has
been analysed that personal background comprises from friends and family and if an individual
get right activity from their family and friends then they are automatically motivated to set up the
business. It is so because this aid can raise the psychological feature skill and risk-taking skills
which directly foster up an entrepreneurship. On the other if, the experience is not good then it
hinders the entrepreneurship and person might be afeard to fit up in an enterprise (Wiklund,
Wright and Zahra, 2019). For instance, Bill Gates reflect from his personality trait that he
possess the skills and ability which an entrepreneur should have but his personal background and
experience also foster his career in positive way. Such that Gates have many siblings and in his
early life, he observed that his parents wanted him to engage him in a law career, but he has his
own interest in software and that is why at the age of 13 he wrote his first program but his
parents also support him and at the age of 18, he started his career in making software programs.
Though he was a brilliant student of his college, but he did not have interest in the study, but he
always spends his time in computers only and thus, his personal experience and family support
encourage him to become an entrepreneur and set up his business.
On the other side, in his early childhhood, when Henry's father gave him a pocket, but he
was dismantled and reassembled but at his early age, when his mother was died, his father wants
him to take the responsibility of the family farm but he despised. At that time, he realize that he
should work for the family otherwise his father will engaged him into farm. Due to having
efficient educational qualification, he become an engineer with an Edison Illuminating Company
and also promoted to Chief Engineer and there he had enough time for an experiments and this
start a journey of making vehicles and start test-driving and also improve the Quadricycles and
when his experiments were passed he starts making his future and now he is known as a founder
of Ford (Zahra and George. 2017). Therefore, it clearly shows that personal background and
personality trait helps to make better career for the entrepreneurs.
CONCLUSION
From the above, it has been evaluated that entrepreneurship plays an important role for
the happening of a concern. As report shows that various businessperson project such that large,
medium, social and also concluded that they relate with the categorization of an entrepreneurship

as well. Further, it has been concluded that these entrepreneurial ventures are different from each
other but their main motive is to grow their business.
In addition to this, report also concluded that entrepreneurs have passion and strong vision that
make them differ from the managers. Further, it has been evaluated that Bill Gates and Henry
Ford possess the motivational skills that reflect they are different from other managers and their
personality skills also shows that they are good entrepreneurs who help to lead the business.
Lastly, report concluded that inheritance and education can posterior and foster
entrepreneurship.
CONCLUSION

References
Books and Journals
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Chowdhury, F., Audretsch, D. B. and Belitski, M., 2019. Institutions and Entrepreneurship
Quality. Entrepreneurship Theory and Practice. 43(1). pp.51-81.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case studies in social
entrepreneurship and sustainability(pp. 34-42). Routledge.
Estrin, S. and et.al., 2019. Entrepreneurship in Emerging Markets. The Oxford Handbook of
Management in Emerging Markets, p.457.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
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Storey, D. J., 2016. Entrepreneurship and new firm. Routledge.
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for the Next Twenty-Five Years of Advances (pp. 5-20). Emerald Publishing Limited.
Wiklund, J. and et.al., 2019. Entrepreneurship and well-being: Past, present, and future.
Wiklund, J., Wright, M. and Zahra, S. A., 2019. Conquering Relevance: Entrepreneurship
Research's Grand Challenge.
Zahra, S. A. and George, G., 2017. International entrepreneurship: the current status of the field
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Online
Role of small busines in the growth of UK economy. 2018. [Online]. Available through:
<https://www.makeitcheaper.com/blog/the-role-of-small-businesses-in-the-uk-
economy>.