Entrepreneurship and Small Business Management

UNIT 9:
ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT (ESBM)

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Different types of entrepreneurial ventures and their relationship with the typology............3
P2 Difference between entrepreneurial ventures:........................................................................4
LO 2.................................................................................................................................................4
P3: Statistical differences between small, medium and large businesses....................................4
P4 Importance of Small Business in Social Economic Growth...................................................7
LO 3.................................................................................................................................................7
P5 Characteristic traits and skills of successful entrepreneurs....................................................7
P6: Aspects of entrepreneurial personality through OCEAN model...........................................9
LO 4...............................................................................................................................................10
P7 Impact of Background and Experience on Entrepreneurship...............................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The main aspect of Entrepreneurship is to produce a product or a service aiming to
maximize profit or to disrupt an industry by taking the initiative to start a small business (Burns,
2016). The main objective of Entrepreneurship in small business is to innovate, grow rapidly and
increase profit margin. In this report, will be discussed that the background and experience of an
entrepreneur plays a significant role in its life. It can even foster or hinder entrepreneurship.
LO 1
P1 Different types of entrepreneurial ventures and their relationship with the typology
A entrepreneur is a person who establish the business and takes the financial risk in the
hope of profit earning. Entrepreneurship is the activity of establishing the business.
The types of entrepreneur are:
Survival: In this mode entrepreneurs does not focus on the business instead of living the another
day (Wennekers, S. and van Stel, A., 2017). It means the cutting of costs, tightens profit margin etc.
The example of the survival is funeral etc.
Lifestyle: A lifestyle is an entrepreneur who have done any physical appearance, it only deals
online. It just needs a person to operate and manage.
Growth: this entrepreneur come into the market to grow and earn profit. Growth is further
divided into two parts: managerial and aggressive growth,
Social: these entrepreneurs start their companies for earning profit but implements the solution
of the social culture and environmental issues (Kuratko, D.F., 2016). The example of the social
entrepreneur is Redcross.
Public: this entrepreneurship is undertaken by the government through the different development
policies. The example of the public company is National hospital service .
The typologies are as follows:
Small business: these business includes the people who run their own business and also hire
their family and local employee. Their main aim is to feed their family on regular basis instead of
making millions from business. Example of small business are funeral etc.
large Business: they are the huge companies which deals with many innovative products and
services on large scale. The example of large business is NHS (national health service).
High business: they are the business which suddenly changed financial position. Their growth
changes very frequently. The example of the high business is google and Facebook etc.

Scalable start-up: the main aim of starting the scalable start-up is changing the vision of the
people. They attract the investors and encourage them in investing the company. Example of the
scalable start-up is Tesco.
P2 Difference between entrepreneurial ventures:
Survival Public Growth Social
Risk Risk is low, as the
motive is to
survive no profit
earning
The risk in public
is minimum to
high as it is
undertaken by the
government
Risk in the
growth is High, as
their focus is on
earning profit.
Risk is not there
in social as the
main motive of
the company is
social
development.
Structure It is in the form of
small shops and
stores.
It is in the form of
companies.
It is in the form of
private company
It is in the form of
public company
and non profit
organisation.
Similarities between entrepreneurial ventures
The similarities between the entrepreneurial ventures are they focuses on the profit
making. All the ventures are creative and innovative in nature (Kubberød, E., Fosstenløkken, S.M.
and Erstad, P.O., 2018). It is the formal concept. The risk taking is there in every entrepreneurial.