Entrepreneurship and Small Business Management

Unit 9 Entrepreneurship and
small business management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Different types of entrepreneurial ventures.................................................................................3
Similarities and differences in entrepreneurial ventures.............................................................5
TASK 2............................................................................................................................................6
Impact of micro and small businesses on the economy...............................................................6
Importance of small businesses and business start-ups to the growth of the social economy.....8
TASK 3..........................................................................................................................................10
Characteristic traits and skills of successful entrepreneurs that differentiate them from other
business managers.....................................................................................................................10
Reflecting entrepreneurial motivation and mind-set through aspects of the entrepreneurial
personality..................................................................................................................................12
TASK 4..........................................................................................................................................14
Hindering or fostering entrepreneurship by their background and experience.........................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneurship can be defined as act of creating new enterprise and bearing all risks
associated with new enterprise and also enjoys all profit earned through the venture. In other
words, entrepreneurship also refers to developing and managing a business venture in order to
gain profit. Individual who start and manage business venture is known as entrepreneur.
Entrepreneurs are also known as and perceived as an innovator. Being innovative and creative
and ability to generate new ideas for business is key ability of entrepreneurs. This report will
discuss about types of entrepreneurial ventures and explain how it relates with typology of
entrepreneurship and similarities and differences between entrepreneurial ventures. This report
later will discuss about impact of small and micro business on economy and importance of small
businesses in growth of the social economy. Further, this report will discuss about characteristic
traits and skills of successful entrepreneurs that differentiate them from business managers and
reflection of entrepreneurial mind-set and motivation through entrepreneurial personality. This
later will also involve examination of factor that foster and hinder entrepreneurship.
TASK 1
Different types of entrepreneurial ventures
Entrepreneur refers owner of business, whose main aim is to accomplish their pre
determined goals like making profit, increasing customers’ satisfaction and others (Birley and
Stockley, 2017). Entrepreneurial ventures have relation with typologies and they may be
scalable, lifestyle. In this context it can also be said that entrepreneurs are innovation driven as
they remain always ready to challenge conventional business knowledge. It can also be said that
entrepreneurial ventures are highly linked with entrepreneurial characteristics.
There are different types of entrepreneur ventures like:
Social: It includes all those organizations whose main aim is to serve people and improve their
living. They do not focus on making profit and whatever they earn, re -invest in improving living
standard of people. They bring innovation within societies and make positive changes which can
make them able to improve themselves and compete with others (Kimmitt and Muñoz, 2018).

Such type of organizations are relate to lifestyle typology because they perform functions for
improving lifestyle of people. Innovation skills are vital for running this business and
accomplishing goals.
Small: Small businesses are those which can be established by anyone as there is no need
of heavy investment. For establishing small business, people only require around 5 million.
There is requirement of having some skills as small businesses are main sources of economy as
they provide employment opportunities to people and help them out in fostering their families.
Innovation and patience are vital for running this business and bearing losses if happen. Some
examples of this type of businesses are: grocery store, coffee shop, saloon etc. It can be related to
serial entrepreneurship.
Large: It refers all those businesses whose main aim is to make profit and earn money as much
as possible. It is established at large level and may have around 1000 employees. By providing
qualitative products, producing attractive and unique products they attract customers and
compete with their players in the market. Some examples of large scale of organizations are:
Sainsbury’s, Tesco as all these retailers try to become the market leader by increasing sales and
attracting customers to the great extent (Ge, Sun and Chen, 2020). They also want to expand
their businesses and for that they require effective communication, risk taking, innovation,
creativity and flexibility skills for adapting changes happen in business environment.
Scalable: It is other type of entrepreneurship in which business owner brings innovative
ideas and try to accomplish their small goals. They can generate revenues without any additional
sky high increment cost. Silicon Valley is an appropriate example of this venture. This type of
businesses can also be related to serial entrepreneurs as they bring creativity within an
organization.
Typology: Lifestyle is a type of entrepreneur who establishes businesses for altering their
lifestyle. Their main aim is to improve lifestyle of themselves and others by producing unique
products and developing innovative ideas. These businesses motivate people and themselves
with life rewards and encourage them to follow their passion, accomplish their goals and develop
their career.