Entrepreneurship and Small Business Management

This assignment explores the different types of entrepreneurial ventures, their interrelations, and the impact of micro and small businesses on the economy. It discusses the skills and traits of successful entrepreneurs and the key aspects of entrepreneurial personality. The document also provides data and statistics to exemplify how micro and small businesses impinge the economy.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures along with their interrelations of
entrepreneurial typologies...........................................................................................................1
P2 Difference and similarities between entrepreneurial ventures...............................................4
TASK 2............................................................................................................................................5
P3 Applicable data and statistics to exemplify how micro and small-business impinging the
economy......................................................................................................................................5
P4 Business start ups and small business growth of social economy.........................................6
TASK 3............................................................................................................................................7
P5 Skills, traits and characteristics of successful entrepreneurs.................................................7
P6 Key aspects of entrepreneurial personality............................................................................8
TASK 4............................................................................................................................................9
P7 Several ways that foster and hinder experience and background of entrepreneurs...............9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship refers to the process of launching, designing and running a new
business which is considered as an small business in which people who always develop these
assorted businesses are known as entrepreneurs. On the other hand, entrepreneurs commonly
focuses on launching and running their business in a smooth manner. As they have large number
of innovative ideas and thoughts that makes them effective as well as attractive in front of others.
Therefore, an entrepreneur plays significant role within the economy of specific country (Ács,
Autio and Szerb, 2014). This assignment is based on different types of entrepreneurs in which
Bobby and Simon Arora considered as a beast entrepreneur who have been developed B&M
chain that is bargain home wares and known as best retailer in U.K. Along with this firm was
established in 1978. furthermore, report will discussed about several ventures and typologies of
entrepreneurial ventures and their similarities or differences. After this small business impact on
economy and different environmental factors that foster background of entrepreneurs will get
covered.
TASK 1
P1 Different types of entrepreneurial ventures along with their interrelations of entrepreneurial
typologies.
Entrepreneurship considered as most effective procedure as well as process that develops
and manage overall business by applying innovative ideas and strategies. Thus, it is necessary for
an entrepreneur to always make innovative ideas for start a new venture or any kind of start-up to
achieve targeted goals (Bosma and et. al., 2012). Likewise, an entrepreneur formulate a business
at small scale with sufficient resources and than convert in to successful business. Thus, it is
necessary for an entrepreneur to always have effective ideas so that they can easily contributes
within the economy at local or national level. There are different types of entrepreneurial
ventures those are as follows:
Small business entrepreneurship:
Within the UK it has been analysed that they have effective rate of growth in order to
evolution of small business entrepreneurs. So that these type of businesses always operate by few
number of employees as well as owners. Thus, these sorts of ventures generally run by family
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members and friend as well along with business partners. Small scale production houses, internet
cafes consulting firms as well as mobile retailers.
Scalable start-up entrepreneurship:
According to these sorts of entrepreneurial ventures, entrepreneurs are able to focus on
developing innovative and qualitative goods and services. As per these sorts of business ventures
an entrepreneur able to have great confidence towards their business by applying innovative
skills all the time. Thus, main aim of these sorts of firms to invest sufficient fund in order to
achieve targeted business goals and objectives (Blackburn, Hart and Wainwright, 2013).
Large company entrepreneurship:
Within the large organisations an entrepreneurs always plays significant role by focusing
on their all over goods and services in order to attain future goals by satisfying consumers needs
and wants. Therefore, consumers have high expectation from these firms in order to have large
umber of variety products and services. Herein, large firms are needed to fulfil their consumer's
needs and wants through giving them innovative goods and services on time.
Social entrepreneurship:
According to these entrepreneurship, entrepreneur needs to develop innovative goods and
services in order to become more successful in a perfect way. Therefore, entrepreneurs required
to formulate and implement effective goods they will increase firm's progress and improve
environment of society (Choi and Majumdar, 2014).
Various kind of ventures
Small business: According to these sorts of ventures there are large numbers of
employees along with several operations of firm. Small ventures always formed for attaining
profitable goals towards product and services which are provided by firms. Therefore, these
businesses have narrow size and scope, due to these ventures are commonly operates at small
scale and provide its services of goods at niche market. On the other hand, such kind of business
are hold by partnership and sole proprietorship with the aim of earning huge profitable
objectives. Under these ventures less than 50 employees work together to achieve organisational
path. Orion electrotech limited considered as example which is private sector and based on
several firms. This firm runs over last 20 years successfully at small level, where it has employed
over 60 staff in its two branches in UK, where it deliver recruitment and contract based services
to blue chip and clients of SME.
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Large company: These sorts of ventures are always operates at high level as there is no
limitations of size, scope, employees and operations. Therefore, these businesses always operates
across the world. On the same side, these business required to have large number of employees
with high talented skills or experience in order to run business successfully. By having
experienced people in firm these businesses can easily implement any ideas towards any changes
within an environment. For example TESCO is one of the largest retailer firm of UK that
operates over 6800 stores in UK and other countries with support of more than 450k employees.
Social enterprises: Main aim of these assorted businesses is to create and welfare of
society. These sorts of businesses generally use several ideas with help of societies in order to
develop better growth of them. Thus, they have large scope of their business that improves living
standard of people in order to better developing economy. Therefore, they always contributes
into development of economy (Bridge and O'Neill, 2012). One of the best example of social
enterprise is Oxfam, which is a confederation of 19 charitable organisation that focuses on
alleviation of poverty at global level.
Typologies of entrepreneurship
Entrepreneurial typologies mainly classified into various categories such as style, form,
structure as well as plan. There are four types of typologies, those are mentioned in beneath:
Lifestyle Ventures: These assorted start-up always developed to attain productive goals
ans it also influence income of each entrepreneurs. In these sorts of ventures entrepreneurs are
not able to associate with expansion or growth. Therefore, these sorts of ventures plays
significant role as their segmentation mainly includes business firms.
Survival Ventures: There are large number of activities and operations all that managed
and controlled by these sorts of ventures. In this sector, business firms do not operate any kind of
business activities. But they commonly perform their different activities by having sufficient
resources as they do not have any kind of relationship with bank. Therefore, these sorts of
ventures comes under the micro-ventures (Drucker, 2010).
Aggressive Growth Ventures: In these sorts of ventures, firms are mainly based on few
typologies in order to develop innovative goods and services. Therefore, the main purpose of
these ventures is to review more growth globally by applying innovative ideas on their business
concept. In this venture, business firms are mainly comes under the large scale business
industries.
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Managed Growth Ventures: According to these sorts of ventures firms always wants to
have stable growth of their business. Through concentrates on expanding of different facilities
and expanding money on them firms can easily manage their future growth and able to make
continues reinvestment on their particular services or products. In this venture, medium sized
organisation comes.
P2 Difference and similarities between entrepreneurial ventures
There are few elements of ventures that creates differentiation as well as similarity of
different activities and several task (Decker and et. al., 2014). Some of the difference and
similarities has been specified below:
Difference
Basis Small business Large company Social
entrepreneurship
Scale These sorts of businesses
generally managed at
small level so that there is
not much requirement of
large amount of fund.
These enterprises mainly
managed at high scale and
need high level of amount
to run business
successfully.
These firms are
managed at local
level in order to
fulfil needs and
wants of society.
Purpose Main aim of these
assorted businesses is to
gain huge profit and
improve living standard
of people (Chrisman and
et. al., 2012).
Large organisations
having aim to develop
innovative goods by which
they can earn profit at high
level.
These types of
business enterprises
always improve
living standard of
people.
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Characteristics Small businesses
generally needed to have
limited resources due to
down intervention of
government.
These business are
required to have large
number of resources like
man, machine, capital and
many more. By which
they can run their business
in a smooth manner.
These enterprises
needed to have
fund from
government so that
they can run their
business operations
perfectly.
Similarities
Basis Small business Large business Social enterprise
Meeting the needs These assorted
businesses are mainly
established to satisfy
needs and wants of
people.
These enterprises
always fulfil
consumer's needs or
desires at highest
level.
These businesses
considered as
supportive device for
society at local level.
Society upliftment With the help of small
business, people can
get large number of
job opportunities and
able to achieve desired
goals (Fassin, Van
Rossem and Buelens,
2011).
Large businesses have
different job
possibilities for people
so that they can satisfy
themselves in a right
way.
In these assorted
business group of
society able to take
many services which
is offered by social
enterprises along with
its improve living
standard of people.
These enterprises
Sustainable
Operations
Firms under this
category focuses on
offering best services
to achieve targets by
handling operational
activities in
Large organisations
also concerned on
achievement of
sustainability in
business, therefore,
operate functional
Social enterprises
mainly operate
business for welfare
of societies, which
helps in maintaining
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sustainable way. activities with less of
wastages and usage of
resources in optimum
manner.
sustainability.
TASK 2
P3 Applicable data and statistics to exemplify how micro and small-business impinging the
economy
Business industries mainly considered as most important aspect that highly contributes
within the economy development. Contribution of firms mainly includes in different types of
schools, infrastructures and many more. There are few businesses that are:
Small: There are less than 50 employees who work commonly in order to have £5million
sales as well as revenue. Thus, these assorted businesses directly influence revenue's of country
at low scale (Aspects of Entrepreneurial personality. 2017).
Medium: In these assorted firms more than 60 employees but less than 250 employees in
order to achieve £5m revenue. This directly impact of economy development in order to satisfy
consumer's needs and wants.
Large: These organisations always have more than 300 employees as a workers and
achieve £22m revenue and sales. Thus, it increase job opportunities for people and operate entire
activities globally.
Impact of SME on economy
Local impact: Micro and small businesses have direct impact on local economy scheme
positively on people as well. As they always satisfy customers by giving goods and services
accordingly. It also improve living standard of people at local society so that they can achieve its
targeted goals.
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(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)
Regional impact: These sorts of economy mainly provide huge opportunities of job to
their employees in order to overcome unemployment such kind of issues from region. Therefore,
they generally needs high skilled employees and it enhance overall income rate of regional
economy along with develop better ways for grab more opportunities in future.
National impact: SMEs directly affect economies at national level as they have large
number of innovative ideas and opinion so that they can properly develop better ways to gain
productive goals along with able to attain high profits. Therefore, there are 15.7 million
individuals have been employed that contributes into the development of UK economy.
Employment growth opportunities: It has been analysed that small and micro level
organisations play a main role in growing economy and generating more employment especially
for local people. According to UK census report, it has been evaluated that SMEs has generated
more than 2.50 millions opportunities to reduce unemployment rates, where higher number of
jobs are provided to females for raising their standard of live.
National impact:
This has been evaluated that government play vital roles to stimulate and foster growth of
start ups culture. These entities undertake use of innovative as well unique ideas and contribute
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Illustration 1: Role of Start-ups and Small Businesses

in national stability. SME’s also employed more than 15.7 million employees in United
Kingdom that increases nation individual’s living standard.
Regional impact:
By passing many years this has been evaluated that micro and small business entities
offer their significant contribution in regional economic performance. It not only increase
country regional stability but also increases per capita income of individuals in a best effective
manner.
Local impact:
Small and micro level business entities in United Kingdom are a significant element of
country economic growth. It provides employment opportunities at local level that increases
individual’s living standard.
P4 Business start ups and small business growth of social economy
Small-businesses and starts-ups are always concern as key aspect of any particular
country as they have ample number of job opportunities for people that improves their living
standard on regular basis. These assorted firms also contributes within the social economy of
UK. There are several kind of reasons towards increasing growth of economy, those are:
Job creation: This is most considerable factor or reason which is used by so many starts-
ups and small businesses in order to improve employment conditions of UK economy. By
developing large number of job offers people can achieve their desired goals and able to attain
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future objectives in a perfect manner. Therefore, this reason of increasing growth affect
individual positively.
Improve living standard: According to the specific country, it is necessary for an
entrepreneur to increase overall living standard of people by providing innovative goods and
services to them. It improve entire condition of UK economy and improve several aspects.
Economic growth: Overall growth of economy is based on job opportunities as well as
living standard of people that helps people to gain huge success in a perfect way. By getting
large number of job opportunities people can develop better growth of economy and satisfy
demand or needs of economy (Kuratko, 2016).
After exit of Britain from EU market, economy of UK has much affected and slow down
rapidly. It leads to increase rate of inflation with higher tariff rate, that impact negatively on
growth of companies of every sector. Under such scenario, government of UK focuses on
supporting SMEs to grow their business because they are not much depended on foreign market
for operating business. This would contributed to raise GDP with generating employment for
local people, as well as help large organisations also in extracting resources from local market
for their production. From the above information it has been said that, small and business starts-
ups are most useful assets for people into economy as they always improved entire living
standard of people.
Small and start-ups business role in social economy:
Start-ups and small scale business is defined as a country backbone. In context with United
Kingdom this has been identified that majority of business operating in nation perform their
operations as small and start-ups entities. They offer large scale of employment opportunities
along with fulfilling needs and demand of customers at great extent with an ease. With the large
number of presence of these entities individuals get products and services in time effective
manner. It has been determined that different start-ups and business like cyber cafe, beauty
salons, legal consultant, working stations, sweet shops, electronic shops, grocery store conduct
their services in country and offer large scale employment opportunity. It effectively increases
GDP of nation along with per capita income of individuals.
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TASK 3
P5 Skills, traits and characteristics of successful entrepreneurs
There are various kind of traits, skills and characteristic of successful entrepreneurs by
which they can make people valuable in front of their employees. There are two types of
entrepreneurs such as Bobby and Simon Arora, their skills and traits are mentioned below:
Characteristic
Hard work and Self belief: It is most considerable skills that should be generally
followed by an individual in order to increase performance of other people at workplace. In
regards with both entrepreneurs Bobby and Simon Arora, they are having effective type of
decision making process by which they can enhance overall growth of their business in a
successful way.
Passion: This is another important characteristic that helps entrepreneur to manage and
control their business factor by resolving every issues and conflicts at working place. Thus, both
entrepreneurs have this type of characteristic so that they can manage their entire team and
develop good passion towards work.
Skills
Leadership: On the behalf of this skills both entrepreneurs able to attain desired goals
with successful performance of workers. As entrepreneurs have good leadership so that they can
manage their work on time and it makes them different from the business managers.
Innovative thinking: This skill of entrepreneur develop innovative ideas within different
types of goods and services by which they can satisfy their consumer's desires and wants on
time. It makes difference between manager and an entrepreneur.
Traits
Disciplined: This is very important trait that always should be considered by
entrepreneur. But in the case of both entrepreneurs they have good disciplined into their work so
that can manage each and every situation of business to attain same goals and objectives. It
develops differentiate between manager or entrepreneurs (Kiss, Danis and Cavusgil, 2012).
All these skills, traits and characteristics can be used to differentiate leaders and
managers as per their position in a firm, in following way -
Basis of Characteristics Managers Leaders
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Skills To hold the position of
managers in a firm, a person
possess efficient time,
decision-making, problem
solving and other skills, to
manage entire operations.
While leaders having efficient
leadership skills that enables
them to become strong
facilitator, influencer and best
communicator, to influence
their subordinates for
achievement of a common
goal.
Characteristics High organisational
knowledge, reliability and time
management qualities are
some main characteristic of
manager
Positive attitude, ability to
delegate and way of providing
clarity in roles and
responsibilities to subordinates
differentiate leaders from
managers
Traits Maintenance of workplace,
plans for execution of short
term goal, operational thinker
differentiate managers from
role of leaders.
Long term thinker, people
focused and strategically
handling the situations shows
high traits of leaders
P6 Key aspects of entrepreneurial personality
Entrepreneurs consist several kind of skills, characteristic and traits in order to manage
business activities as well as so many functions in order to sustain at marketplace for long period
of time. Different types of skills and personality of entrepreneurs have direct impact on society to
become a successful person. Key aspect of entrepreneur could be understand through applying
OCEAN model, which are as follows:
Openness: According to this initial stage, an entrepreneur is able to give so many views
and ideas to business for attainment of targeted goals. So that they can make better decision
towards particular concepts and theories in order to overcome several issues of business. To
formulate healthy and competitive environment in business to achieve further growth, an
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entrepreneur must having openness in its part of work, that helps in learning new things on
regular basis.
Conscientiousness: It is associated with flexibility and reliability that directly influence
entire goals of entrepreneurs while they establish so many activities among goods and services to
achieve targeted objectives. In this regard, for operating business in smooth manner, an
entrepreneur needs to aware regarding with conscious mind. This would help in adopting
innovative ideas and making changes in business as per trends of marketplace.
Extroversion: It could be identified as the direct and outgoing attentions of those things
that comes into entrepreneur's mind. In order to develop great impact on economies and people
an entrepreneur required to develop good relations with people to gain successful growth of their
business.
Agreeableness: It is considered as a trait of personality in this people can perceived
entrepreneurial behaviors and their characteristic. As entrepreneurs generally have polite nature
as well as good bond with people that identified their personality. Furthermore, they are able to
agree on different decision that comply with particular concept (George and Bock, 2011).
Neuroticism: It includes fear, worry, anxiety, frustration and so many factors. Therefore,
an entrepreneurs give negative views on different types of working condition. Thus, an
entrepreneur should remove all these negative factors from their mind and should treated their
employees in a equal way. It will develop great image of an entrepreneur at working place.
As per in accordance with the evaluation, this has been determined that Simon Arora and
Bobby Arora significantly get motivated because of number of characteristics as well as
personality. It has been signified that with openness’s both the entrepreneur ensure balance
among emotion and work. This encourages them to stay allied and motivated towards their
responsibilities and roles. In addition to this Conscientiousness significantly entrepreneurs to
change their mind set and emerge out as a successful entrepreneur, as this encourage them to
perform their roles with flexibility. In terms with Extroversion, it effectively motivated them to
ensure that they maintain efficient relationship with staff and other related individuals that
automatically develop leadership skills among them. In context with Agreeableness it influence
entrepreneurs to trust their employees lastly if it is talked about Neuroticism it drive behaviour of
both entrepreneur to effectively overcome complex form of situation with ease.
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TASK 4
P7 Several ways that foster and hinder experience and background of entrepreneurs
Entrepreneurs primarily operates its business activities in an effective manner in order to
boost profitability level. They provide superior quality products and services to its user at low
price. Therefore, the experience of entrepreneur plays a very important role for achieving target
within a stipulated period of time. On the other hand, the whole background and experience of
Simon and Bobby Arora, through which they become successful, which is going to be discussed
below:
Simon Arora:
Background: Simon Arora is one of the superior British billionnaire businessman born
in the year of 1969. In addition to this, he is the CEO of retailing unit of B and M. He worked as
an business analyst for the company Barclay and Mckinsey. Beside from this, he started new
business with his brother and deal in importing homewares from Asia to retail chain. Before
purchasing B and M in the year 2004 , they do their business with his younger brothers Robin
and Bobby with net worth of £2.3 billion (Kirzner, 2015). In assistance of this, Simon has 2
daughters and his wife possess the degree of natural science from Cambridge university as well
as co-founder of bio-tech business.
Experience: He started his business with his younger brothers successfully but they also
face several problems such as lack of finance and support of friends as well. Beside this, he
manage his problems and difficulties for future growth of the business organisation. On the other
hand when Simon and his younger brother purchase the firm B and M they suffer from huge
amount of loss. In present context, B&M have millions of customer and now they started their
new stores in superior locations within UK. Simon is capable to accomplish tageted goal and
objectives as well as offer employment opportunities to local economies.
Bobby Arora
Background: Bobby is British businessman along with trading managing director of
retailing chain. He was born in the year of 1972. He have two siblings Robin and Simon. In
1995, Booby started his business with his younger brother Robin and Simon as well as import
homewares from Asia. In 2004, he has facing several problems and issues because grocery chain
is based on Blackpool. In addition to this, he always focuses on his career. He will become
successful entrepreneur bu working hard in the marketplace.
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Experience: Bobby have a good experience because he is a trading director of B and M
firm. But they face various problems while operating its business activities and functions in the
marketplace. He always put efforts in bring innovative ideas for achieving goal and objectives in
appropriate manner (Islam and et. al., 2011)
CONCLUSION
On the basis of above mentioned report it has been analysed that, entrepreneurship plays
important role within the economy by accomplishing people needs and desired at both local or
international level. As entrepreneurs always able to bear most factors of risk so that they have
idea that how they can reduce negative impact from the economy. This type of mind set always
develop better ways for improving living stand of people so that they can enjoy their life as well.
On the other side, there are different types of ideas and knowledge of entrepreneurs that makes
them attractive from business managers. With the help of this they can use large number of
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business ventures in order to shows interrelation of several typologies. It helps entrepreneurs to
achieve business targeted goals frequently.
REFERENCES
Books and Journal
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strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Bosma, N. and et. al., 2012. Entrepreneurship and role models. Journal of Economic Psychology.
33(2). pp.410-424.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
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Choi, N. and Majumdar, S., 2014. Social entrepreneurship as an essentially contested concept:
Opening a new avenue for systematic future research. Journal of business venturing.
29(3). pp.363-376.
Chrisman, J. J. and et. al., 2012. Family involvement, family influence, and family‐centered non‐
economic goals in small firms. Entrepreneurship theory and practice. 36(2). pp.267-
293.
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Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’ perceptions
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453.
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Islam and et. al., 2011. Effect of entrepreneur and firm characteristics on the business success of
small and medium enterprises (SMEs) in Bangladesh. International Journal of Business
and Management. 6(3). p.289.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kiss, A. N., Danis, W. M. and Cavusgil, S. T., 2012. International entrepreneurship research in
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Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Online
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