Entrepreneurship and Small Business Management

This report explores the various types of entrepreneurial ventures and their relation to the typology of entrepreneurship. It discusses the differences and similarities between different entrepreneurial ventures and analyzes how small businesses impact the economy. It also highlights the significance of start-ups and small businesses to the growth of the social economy. Additionally, it delves into the skills that set entrepreneurs apart from other company managers.

Entrepreneurship and
Small Business
management
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Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Discuss various types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship.....................................................................................................................3
Discuss the differences and similarities of various entrepreneurial ventures.........................5
Analyse and measure related data explaining how small businesses impact the economy...6
Describe the significance of start-ups and small businesses to the growth of social economy.
................................................................................................................................................8
Discuss the skills an entrepreneur has in contrast to other company managers.....................8
Measure how aspects of entrepreneurial personality imitate mindset and motivation...........9
Discuss with suitable examples how background and experience can hinder or foster
entrepreneurship...................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
The term Entrepreneurship is defined as the process of innovating of creating a new business
entity bearing all the risk and difficulties with the aim of achieving maximum profit and
productivity. The person who starts the business entity and takes all the risk is defined as the
entrepreneur; he is someone who has the idea, ability and desire to convert the innovative ideas
into the reality into to get profit. For this report Oldham Angels an investment firm is taken into
consideration, in order to offers helps to the start-ups in the community to get loans with the
angel investors, as an line manager of the company it is asked to provide some advice to the local
businesses. This report highlights various types of entrepreneurial ventures and their relation
with the various typology of the entrepreneurship. Also difference and similarities between the
various entrepreneurial ventures is also highlighted. In addition to this the analysis of suitable
data to understand the impact of small business on the economy with the importance of start-ups
and small business to the enhancement of social economy is also highlighted. Furthermore skills
of an entrepreneur in comparison to manager and how his personality influences his mindset and
motivation with how his background and experience can influence entrepreneurship is also
highlighted in this report.
Main Body
Discuss various types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship
Entrepreneurship is defined as the process of creating new or innovative ideas into
business entity bearing all the risk and challenges and earning the rewards, it is the ability of an
individual to identify the opportunities available in the environment and converting those
opportunity into an reality or effective business entity. The person who coverts the innovative
ideas into the business entity bearing all the risk and challenges are called entrepreneurs. The
entrepreneurship is allows individual to critically analyse the situation and look for the various
options and solutions for critical situation. The entrepreneurship is the ability to already to take
the risk in order to earn the rewards (Abou-Moghli and Al-Abdallah, 2018).
Small Businesses vs. Entrepreneurial Ventures
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The small business mainly deal with the well known products and services in the market
but whereas the entrepreneurial venture usually deals in offering new and innovative products to
their customers continuously. In case of the small business, as the size of the business are small
and usually started with the aim of surviving and earning minimum product so the owner usually
deal with the well know risk in the market, but whereas in case of entrepreneurship ventures the
entrepreneur is always ready to take the risk and earn rewards. The main focus of the small
business is to continue to survive in the market with minimum profit whereas the entrepreneur
aims at gaining rapid growth and earning maximum profit in the market (Anambane and Adom,
2018).
There are various types of entrepreneurial ventures which are discussed below:
Small business Entrepreneurship: This type of business entities are small in size and
mainly started and operated by the owner himself, the main aim of the owner of the small
business entities are to earn at least minimum profit and survive in the marketplace. These types
of small business entrepreneurship are mainly operated by the single person or the family
members. They satisfy the needs and wants of the customers effectively and already aware of the
risk. Examples of the small business entrepreneurship are hairdresser, electrician, plumbers.
Scalable start-up entrepreneurship: this type of entrepreneurial ventures with the aim of
providing innovative and creative product and services to the community effectively, the main
focus of these type of venture is enhancing the innovation and creation effectively. This type of
venture aims brings innovation change in the society with their innovative ideas and thinking.
They think that they can bring changes in the community with their innovation. Example of these
type of innovation are the E-commerce website, Facebook, Twitter.
Large company entrepreneurship: The large company entrepreneurship is the type of
entrepreneurship venture which are described as relatively big in the size, this type of venture are
mostly started with the main focus of surviving for longer period of time, the large company
focus on satisfying the needs and wants of their customers through offering quality services and
products to them. The aim of this type of venture is to earn maximum profit in the market place
and gain competitive advantage in the market (Ayob, 2018). They also aim at enhancing their
profitability and productivity in the marketplace. Some of the example of this type of venture is
Apple, Google.
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Social entrepreneurship: The last type of entrepreneurial venture is the social
entrepreneurship, this type of entrepreneurship are usually started with the aim of satisfying the
needs and wants of the society, this type of ventures continuously work towards welfare of the
society through their innovation, they focus of innovating and creating the type products and
services which will satisfy the needs of the society effectively. Example of this type of ventures
are safe point (Berglund and Verduyn, 2018).
Typologies of entrepreneurial ventures: The typologies of the entrepreneurial ventures
are the type of entrepreneur and their ventures. Some of the entrepreneurs and their typologies
are as follow:
Female entrepreneurs: This type of ventures are operated by the women’s with their
creativity and innovation.
Innovator entrepreneur: this type of entrepreneurs works towards brining innovation and
creativity in the market continuously.
Typologies
Lifestyle ventures: This type of entrepreneurial are started in order to maintain the
lifestyle of an individual, with the aim of earning minimum profit.
Earning ventures: This type of ventures are started with the aim of earning profit in the
market in order to continue to grow and survive.
Discuss the differences and similarities of various entrepreneurial ventures
The similarities between the various entrepreneurial ventures are discussed below:
 The main similarity between all four entrepreneurial ventures is that all four are started
with the main aim of earning profit.
 Another similarity between all these ventures is to satisfy the needs and wants of their
potential customers.
 Also these ventures started with creative and innovative idea into business entities.
The difference between various entrepreneurial ventures is discussed below:
Basis of
difference
Small business
entrepreneurship
Scalable start-up
entrepreneurship
Large company
Entrepreneurship
Social
Entrepreneurship
Number
of
In case of small
business
In case of
scalable start-up
In large company
entrepreneurship
Under the social
entrepreneurship
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employees enterprise the
number of
employees
involved are less
and not more
than 50.
entrepreneurship
the employees
are employed
according to the
size needs in the
organisation.
the number of
employees are
normally more
than 100 as the
size of the
company is big.
the number of
employees
normally depends
on the willingness
to work towards
social welfare.
Goal and
objectives
The main goal or
objective of the
small business
entrepreneurship
is to survive in
the market and
continue to grow.
Under the
scalable start up
the main goal
and objective of
the company is to
be innovative and
bring changes in
the world with
their innovation
and creativity.
In case of large
company
entrepreneurship
the main goal of
the company is to
satisfy the needs
and wants of their
customers
through offering
quality products
and services to
them.
In case of social
entrepreneurship
the main
objective of this
type of venture is
to satisfy the
needs of the
society and work
towards the
welfare of the
society.
Analyse and measure related data explaining how small businesses impact the economy.
The micro and small business covers the large part of every industry and positivity
contributes towards the growth and success of the economy, it is analysed that the number of
small business are increasing effectively leading to the overall development of the economy. The
small business covers the large of the every economy enhancing the overall performance of the
country and increasing the productivity and profitability of the economy effectively. The small
business are normally started with an innovative idea and satisfying the needs and wants of the
customers through providing quality services effectively (Bhat and Singh, 2018).
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(Comparison of SMEs and large businesses in the UK)
From the above graph it is analysed that, in UK there are large number of small business as
compared to the large business, there are 4.5 million SMEs in the UK which is almost 99% of
generally all the business enterprises in the UK. The contribution of these SME towards the
growth and development of the economy is generally high, the profit generated by the small
business enterprises largely contributes towards the growth and development of the economy.
out of all the businesses 96% of the businesses are analysed to be the micro business contributing
towards the development of the economy through employing almost 22% of the overall turnover
(Haghighi and Jalali, 2018).
(Share of businesses in the UK)
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From the graph it is analyses the share of businesses in the UK, and from the above it is
analysed that the small business is highly contributing towards the development and growth of
the economy as compared to medium and large business. There are 99.3% of small business in
the country employing 48% and with the turnover of 33%, which positivity contributes towards
the growth and development of the economy. With the increasing number of small business in
the country it has enhance the overall performance of the country and also increasing the overall
profitability and positively contributing towards the success of the business (Hashmi, 2019).
Describe the significance of start-ups and small businesses to the growth of social economy.
The start-up and the small business are effectively contributing to the growth and
development of the social economy, as start-up are mostly started with an innovative ideas and
with the main aim of satisfying the needs and wants of the society, innovation of new product
and services can help in satisfying the needs to the people. The start-ups and the small business
can contribute to the growth of the social economy through generating higher profits or revenues
which enables them in paying timely taxes which leads to the growth of the economy, also they
can generate more employment opportunity in order to deal with the unemployment in the
society. Hiring employees in order to deal with the unemployment and providing large
opportunities to the society will automatically help in the development of the social economy,
Small businesses in the UK are providing the largest number of employment with 48% which
can directly helps in the development of the social economy effectively. In addition to this many
start-ups and small business are activity engaged in various type of corporate social
responsibility which includes dealing with various type of issues related to social, environmental
or economic problems. Many CSR activities may involve helping rural area or providing
education and can be helping poor communities all these activities directly help in enhancing the
social economy. All these activities done by the start-up and the small business helps in
improving and increasing the overall performance of the social economy also directly helps in
the development of the social economy (Mallett, and Wapshott, 2020).
Discuss the skills an entrepreneur has in contrast to other company managers.
The entrepreneur is someone who continuously work towards brining changes in the
community, who has the ability to see opportunities and handle the risk effectively, he
continuously work towards converting these opportunities into the business entities bearing all
the risk and enhancing and earning rewards, there are set of skills that an entrepreneur has which
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continuously allows him to works towards achieving the targeted goals and objectives and
brining innovation. Some of the skills an entrepreneur has in contrast to other company manager
as follow:
Passionate: one of the most essential skill of an entrepreneur is having passion about
following his dream, passion gives the drive to work and also the reason to work, without
passion there is no reason to work, it is one of the essential skill required by the an entrepreneur
or even by any professional to work effectively and move towards continuous growth and
success. Entrepreneurs always follow their passion they know what they are doing and why they
are doing (Pato and Teixeira, 2018)..
Motivated: Another skill that separates entrepreneurs from any other company manager
is that they are self motivated, they are always motivated towards brining innovation and
working towards achieving targeted goals and objective even when they know it involves risk.
They are recognised as to be their own boss and self motivated towards their goals.
Optimistic: The entrepreneurs are optimistic, they have look at things positivity and
ready to find solutions to the problems. They always look for opportunities and when are faced
with challenges they never give up, they look for the bright side and look for the solutions, they
are considered to be the risk takers, always looking at the problems as being the opportunities
and bring innovation. They are highly optimistic towards their goals and objectives.
Creative: Entrepreneurs are highly creative always looking for creative ideas and
bringing innovation into the market. In order to grow and survive into the competitive
environment it is very essential for each individual to be creative and bring innovative ideas.
Entrepreneurship always starts with an innovation and creative idea. It is one of the most
important skills of an entrepreneur which makes him different from company manager.
Future oriented: The another skill of the entrepreneur is that they are future oriented, they
always think of the future as they are always focused on moving forward, they always have
clarity about their future and what they needs to achieve and accordingly moves forwards to
achieve those goals (Poblete, 2018).
Measure how aspects of entrepreneurial personality imitate mindset and motivation.
The entrepreneurial personality is essential in imitating the mindset and motivation of an
entrepreneur. The personality is defined as the mixture of individual characteristics, behaviour
and attitude, the personality defines the overall characteristics of an individual. For an
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entrepreneur the strong personality is very essential, having attracting and strong personality
helps in influencing others and motivating him towards growth and opportunities effectively
(Ratten and Usmanij, 2021). In order to understand how entrepreneurial personality imitates the
mindset and motivation, some of the essential personalities of an entrepreneur are discussed
below:
Openness: Having this traits in the personality allows an entrepreneur to be more open,
imaginative, entrepreneurs with this traits are more adventures can motivates them towards
continuously achieving targeted goals and objectives effectively. Entrepreneurs with this traits
are tend be more creative and have imaginative mindset and also considered to be highly
motivated.
Conscientiousness: The another personality trait is the conscientiousness, entrepreneur
with this traits are more goal oriented and plans everything in advance and wants everything to
be done correctly and timely. This type of personality traits allows entrepreneurs to be more
thoughtful and considerate about nay situation.
Extraversion: The entrepreneurs with this type of personality traits are outspoken and
goes everything extra, this type of entrepreneurs always tries to catch attentions of the others as
they always wants to be the centre of attention in everything they do, entrepreneurs with this
personality trait attracts more attention usually.
Agreeableness: The another type of personality traits of teh entrepreneurs is the
agreeable, entrepreneurs with this personality traits always agree with others easily and are
generally kind, trust easily. And always have positive attitude about each and every thing, this
type of personality traits allows entrepreneurs to be easy going.
Neuroticism: The last one is the neuroticism, entrepreneurs with this type of personality
traits are normally moody and emotional. Entrepreneurs with high traits will be emotionally
weak whereas with low traits will be emotionally strong and more stable.
Discuss with suitable examples how background and experience can hinder or foster
entrepreneurship.
The individual’s background and the experience can foster and hinder entrepreneurship
effectively, as they both can effectively determine the success or failure of an individual. The
personal background includes the factors like family, friends, colleagues, relatives which helps
and motivates an individual towards his career goals and success in his life, the background helps
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in the fostering and hinder the entrepreneurship as for example the financial condition will
directly influence the success or failure of an entrepreneur as this will helps in analysing his
ability to take financial risk in his life. Whereas the personal experience also has great influence
in fostering and hinder the entrepreneurship, the personal experience includes the learning or
knowledge an entrepreneur gets from the real life experience throughout his life which leads
towards the growth or success or can be towards failure effectively (Whitehurst and Richter,
2018).
For example, The Steve Jobs founder of Apple can be taken into consideration in order to
understand the how experience and background foster and hinder entrepreneurship. In case of
Steve Jobs, he was a college dropped out student, and was from an average class family but
being an dropped out didn’t stop him to try further in his life. He started his career as just small
business as designing computer using his calligraphy skills and with his experience now Apple is
one of the top international company having the strongest brand image in the market across
globe. For this it can be analysed that the previous experience or a poor background doesn’t stop
anyone but with strong passion they can be the driving force towards success and growth.
Conclusion
From the above report it can be concluded that entrepreneurship is essential part of the
economy, both small business and entrepreneurship helps in the growth and development of the
economy, there are number of small business highly contributing towards the growth of economy
of the country, this report highlights various type of entrepreneurship and their typologies and
their similarities and differences are also highlighted in this report. This report also includes the
impact of small business on the economy and the its importance of the growth of social economy
effectively. in addition to this how entrepreneur different from the manager and how his
personality reflect mindset and motivation and also background and experience can hinder and
foster entrepreneurship is also explained in this report.
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References
Books and Journals
Abou-Moghli, A.A. and Al-Abdallah, G., 2018. Evaluating the association between corporate
entrepreneurship and firm performance. International Journal of Entrepreneurship, 22(4),
pp.1-10.
Anambane, G. and Adom, K., 2018. Assessing the role of culture in female entrepreneurship in
contemporary Sub-Saharan society: Insights from the Nabadam district of Ghana. Journal
of Developmental Entrepreneurship, 23(03), p.1850017.
Ayob, A.H., 2018. Diversity, trust and social entrepreneurship. Journal of Social
Entrepreneurship, 9(1), pp.1-12.
Berglund, K. and Verduyn, K. eds., 2018. Revitalizing entrepreneurship education: Adopting a
critical approach in the classroom. Routledge.
Bhat, I.H. and Singh, S., 2018. Analyzing the moderating effect of entrepreneurship education on
the antecedents of entrepreneurial intention. Journal of Entrepreneurship
Education, 21(1), pp.1-10.
Haghighi, M. and Jalali, S.H., 2018. Strategic Alliance Formation from the Institutional Theory
Perspective. Journal of Business management, 9(4), pp.717-738.
Hashmi, S., 2019. Entrepreneurship: challenges or opportunities for women. International
Journal of Research in Social Sciences, 9(5), pp.366-374.
Mallett, O. and Wapshott, R., 2020. A History of Enterprise Policy: Government, Small Business
and Entrepreneurship. Routledge.
Pato, L. and Teixeira, A.A.C., 2018. Rural entrepreneurship: The tale of a rare event. Journal of
Place Management and Development.
Poblete, C., 2018. Growth expectations through innovative entrepreneurship. International
Journal of Entrepreneurial Behavior & Research.
Ratten, V. and Usmanij, P., 2021. Entrepreneurship education: Time for a change in research
direction?. The International Journal of Management Education, 19(1), p.100367.
Whitehurst, F. and Richter, P., 2018. Engaged scholarship in small firm and entrepreneurship
research: Grappling with Van de Ven’s diamond model in retrospect to inform future
practice. International Small Business Journal, 36(4), pp.380-399.
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