Entrepreneurship and Small Business Management

This study material from Desklib provides information on the types of entrepreneurial ventures, their impact on the economy, and the characteristics of successful entrepreneurs. It covers topics such as small business entrepreneurship, large company entrepreneurship, social entrepreneurship, and scalable start-up entrepreneurship. The material also discusses the similarities and differences between entrepreneurial ventures and the importance of small businesses to the social economy of a country. Additionally, it explores the defining characteristic traits and skills of successful entrepreneurs, using Peter Jones as an example.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Types of Entrepreneurial ventures and ways how they relate to topology of
Entrepreneurship.........................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures:............................................2
LO2..................................................................................................................................................4
P3 Interpretation and assessment of data to illustrate how micro and small business impact on
economy:.....................................................................................................................................4
P4 Small business importance to social economy of country.....................................................5
P5. Defining characteristic traits and skills of successful entrepreneur......................................7
LO3..................................................................................................................................................9
P6 Entrepreneurial aspect reflects entrepreneurial motivation and mind-set:............................9
P7 Experience hindering entrepreneurship...............................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship can be described as method of opening a new business sand running
that business to gain success. Many new entrepreneurs are in market those who have started their
new firm and have gained success in country, It is essential have good focus and skills so that
right decision can be taken by entrepreneur for the growth of company. Current assignment will
describe ventures and their typologies. It will show similarity and differences in these ventures.
Furthermore, contribution of small companies to growth of economy will be presented in this
report. The characteristics traits reflect the characteristics of the entrepreneurs which help in the
growth. Various entrepreneur is discussed whose reflection are provided in the discussion below
which reflects the personality aspects and motivation mind-set of the entrepreneurs and explains
how the background hinders the entrepreneurship.
LO1
P1 Types of Entrepreneurial ventures and ways how they relate to topology of Entrepreneurship
Small business Entrepreneurship-
Small business entrepreneurship refers to the small business which carries a small
turnover within the organization which can be used to generate a small capital within the market.
They have a fixed market range. Almost 90% of the business are small ventures across the globe
which has small business capitals. Small business employees 50% of non-governmental workers.
Almost all of them do not earn profits but are able to manage the capital to earn for their
livelihood and lifestyle. This kind of business lack to attract venture capitalist and are able to take
funds via bank loans, family investments and from family which work with the aim to achieve
high. People who befall under this category are small businessmen like carpenter, entrepreneurs,
consultants etc. these lie on the private sector which can be used to evaluate the key result which
are dependent on private sector. No information is shared with the ventures and capital finances
(Burns and Dewhurst, 2016).
Large company Entrepreneurship-
Large company refers to the organizations which develops various strategies through
innovation and development of new products. They emerge market through innovations,
developing and new offerings which can be the backbone of the development of their core
products. Innovations are practised with the aim of the offering something new to the market to
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minimise the rate of change of the competition, this features to stand out of the competition from
the market. Other way to make company elaborate is through the partnering up with the small
ventures and making the business effective and improving the personal growth. They usually take
over the small business to develop their own powers and expands hands in the market. Some of
the examples are Google, Facebook etc. these are public sector ventures which aims for the
development of the large organizations which shares the information relevant to the public sector.
they are owned by group of people where one has the highest shares runs the organization.
Social Entrepreneurship-
Social Entrepreneurship refers to the ventures where the entrepreneurs creates products
and services for the social needs of the society. Their aim is for the welfare of the society and the
ability to develop the world a better place. Their ultimate aim is to serve the society and does not
make profits. These firms work for the welfare of the society and the people irrespective of cast,
creed, religion and sex. They can be profitable, non-profitable or hybrid organizations. These can
be various NGOs which can be used to develop the quality and affinity to serve for humanity
(Burns, 2016). Their main aim is to generate the developed culture of awareness and for create
humanitarianism. This is a public owned organization where people do actively take part in the
planning and development of the country.
Scalable Start-up Entrepreneurship-
This type of entrepreneurship refers to the start-ups which can grow up to change the
world. They are funded by the venture capitalists who are interested in the idea to change the
world. They hire the best employees to bring up the idea of the innovations and development. As
the aim to develop and the increment of the business starts further funds are provided by venture
capitalists and the growth and awareness in the firm are provided. Scalable start-ups are in the
small proportion due to risk capitals and outside returns. These starts-ups are a risk for
entrepreneur as the amount invested are of investors which gives them power and position to take
over small business (Hatten, 2015). This is a privately owned organizations where decision lie
with the one person and are stricken to one entity.
P2 Similarities and differences between entrepreneurial ventures:
Similarities:
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Private, voluntary, public firms work in different manner built have some common
aspects. Discovery, evaluation and exploitation of new opportunities are introduced and are put
up into practices which can increase the performance of the ventures. Introduction of new
products, services and innovations in the business brings the development and upbringing of the
firm. Creating new job opportunities for various individuals through our business ventures.
Hiring different persons for the growth and welfare of the business ventures. Their objective is to
maintain business with the pace which can help in the development of the firm (Gibson, 2017).
Their main aim is to generate profits and evaluate the results which maintains the growth and
service of the firm. Regular tax is paid which contributes to the company's economy which can
generate the revenue of the firm. They work for the welfare of the society by contributing to the
economy of the world. Some of the ventures work for the social welfare which generates the
social awareness to the society. Many of the similarities can be seen with the various ventures as
they work for the growth and development of the individuals and for better sustainability in the
ventures. They aim to reflect the growth and development of venture capital which can bring the
enterprise to heights. They aim for the development and growth of workers as they are valuable
assets to the firm.
Differences:
Differences which are generated by different ventures are personal ventures have personal
risks which are higher due to various reasons like higher the tolerance for the risk of the
organization better will be the sustainability of the firm. The purpose of each organization is
different some work for the betterment of the social welfare whereas some aims to work for the
generation of the profits depending upon the various reasons which can be used to create
awareness and growth of small ventures (Volery and Mazzarol, 2015). Size of different ventures
differ from types of organizations even a firm smaller in size can create a level of the work which
can be an example for many other firms. According to the size of the firm the economic
contribution of each firm is different as their difference in the economic generation of the firm
this gives unequal contribution in the economy. Eventually new ventures will have a smaller
team, which differs from larger size corporate firm which have existing corporate culture and
structure. Individual ventures. They variations in size will provide a variance in result which
differs. As the aim of various ventures are different from one another they provide a different in
income structure (Millsteed, Redmond and Walker, 2016).
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LO2
P3 Interpretation and assessment of data to illustrate how micro and small business impact on
economy:
Small companies have great contribution in the growth and development of UK
economic condition. These small business work for their sustainability but it gives benefit to
economy as well. UK statistics of 2019 reflects that in the year 2019 there were 5.8 million these
small scale companies that have generated huge profit as compare to last year. A compare to
previous year there is 3.5% growth in the small private companies that has improved condition of
UK. Now many private sector firms are contributing to GDP development (Saleem, 2017).
Small companies are such firm that have employees between 0-49. In the year 2019 around
5.82 million companies were there that have hired that number of workers in organisation.
(Julien, 2018). These small scale companies have contributed well in generating employment for
the local people and have provided 16.6 million job opportunities to population. There are around
2.6 million companies that works as private companies are paying tax and VAT which is around
45% of entire population. There are many small companies that come up with new ideas which
has attracted consumers and have helped in generating revenues and that thing has contributed
well in development of UK economy.
Small, medium and large are three major categories that generate huge revenues to the
economy. Records show that in the year 2019 SME business have generated turnover of around
25million. Companies that has 1-9 employees are able to generate profit of 15000 and
companies that have no employees can also able to make profit of 6000 whereas firms that have
10-49 workers can be able to make profit of 56000. Small companies have made business of
99.3% and turnover of these firms in the same year is 33% which is very high and that shows
contribution of small firms to UK economic development. There are around 5860 SME business
that have provided employment to 16630 people in United Kingdom. In the year 2019 total
turnover of SMEs that have employees 0-250 was 2168 and these companies have hired around
60% people of UK this is great contribution of employment rate and it is around 18% of entire
employment rate of country. London is the city that has many private companies there are around
1.1 private firms and in south east around 940000 private companies are operating.
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P4 Small business importance to social economy of country
Business contributes in development of nation and improving social wellbeing of society
members. Which aims for the development of the business although it takes risks to run a small
business successfully that offers opportunity for the young employees. But the risk level is high
within a small business (Ayandibu and Houghton, 2017).
Creating Employment- it is evaluated that the jobs created in the private sector is because of
small businesses. At the time of struggle with the settling of the firm they create job opportunities
for many of the employees they not only deals with providing jobs but also help them sustaining
in the environment which can feel them comfortable in the society and help them in sustaining
them in the firms’ culture. As employees are valuable assets to the firm they are provided with a
safer working environment. which help in the generation of the growth of the firm and help in the
development of generating benefits to the firm. Small firms are always towards finding new
opportunities for the growth which can provide a new culture and more of opportunities to work.
Growth of the firm lies in the hands of the workers.
Local improvement-. These companies carry out their operations at small scale and work to
generate reasonable amount of profit, that profit is helpful for the development of local areas.
Small companies work to enhance the capabilities of community members and improving
facilities at local area so that people can live a healthy life. They ensure to work for the welfare
of society by offering them goods and services at affordable level. Small businesses need to
support one another in the crucial times to evaluate the growth and development of each other.
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Illustration 1: statical data for the economy generation of entrepreneurs

Local improvement can help the firm by various means of improvement by the local support of
local firms from one another. To make a particular position in the market. A set back to the firm
is developed for the generation and settlement of the firm.
Employment opportunities: One of the major aspect of social economy is to have adequate
income sources that may help person in living life in significant manner. Big companies always
want to hire skilled and experienced people. Whereas small firm recruit small people and give
them less pay but that amount is sufficient to them to live a healthy life. Small companies offer
job opportunities to everyone no matters whether person has experience or not. This aids in
generating income to them.
Lifestyle improvement: this is another important of small companies to social economy, these
companies work to improve life style of community members by providing them income sources.
With the change in the lifestyle, the firm needs to change the working conditions with the
lifestyle carried out in the outside environment and the ways to improve the change in the
working conditions of the firm in which employees work enthusiastically, providing a better
learning lifestyle for the workers which will result in better understanding and improvements
carried out by the workers. Better facilities provided to employees will enhance a better lifestyle
for the workers, standard of living will be enhanced which will help in the development of the
lifestyle of the workers and better employment of the opportunities which help in the growth of
social economy (Yan and Yan, 2016).
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P5. Defining characteristic traits and skills of successful entrepreneur
Peter Jones is considered as one of the most successful British entrepreneur. He is also a
well established businessman as well television personality of the UK which is having interest in
different functional areas such as mobile phones, leisure, retail, television as well as property
related operations.
Peter is having passion, confidence with firm decision making ability. Also, he is an open
minded as well as disciplined entrepreneur having more focus on what steps needs to take in near
future for attaining success. Below mention are some characteristics as well as skills which has
been possesses for becoming a successful entrepreneur:
 Leader – For becoming an entrepreneur, it is very much important to have a good
leadership quality as well. By providing clear as well as right direction, it enables
employees as well as workers in understanding measures to be undertaken for attainment
of business goals (Kozubíková and et.al., 2017). Correct monitoring, guidance and
communication are some necessary steps required for attaining business objectives with
the help of which an entrepreneur can capture market share.
 Managerial skill: Peter has ability to lead team well through its effective management
skill. Individual has ensured that market risk and has planned things in such manner so
that employees can perform their duties well. Peter has managed each task in effective
manner that has supported organisation in gaining success due to this skill individual has
become the great entrepreneur.
 Confidence – It helps an entrepreneur in gaining large market share and development of
business as well. By having confidence, an entrepreneur can make use of market
opportunities and can convert it into business profits with the help of strategies
formulated. Also, by having positive attitude a business enterprise can seek competitive
advantage in the market place.
 Innovative – An entrepreneur should be creative as well as innovative enough to generate
profitable ideas, thoughts and concepts with the help of which a business can maximizes
its profit level with minimum cost expenses. It will also help in acquiring large market
share and customer base with innovative products and services.
 Passionate – One of the most important skill is related with the level of passion an
entrepreneur is having for its business. By making focus on policies, strategies to made
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for having future business growth and success, Peter has been able to understand as well
as has analyses current market options and has made use of it in improving its business
performance (Sousa, 2018).
 Open minded – For making business more successful and of developing nature, an
entrepreneur should always have quality of inviting and adopting ideas, concepts and
thoughts as provided by its peer’s members which is of the best nature for making
business more successful.
 Decision maker – An entrepreneur should have an ability to make effective decision
related to its business operations without being influenced by other thoughts easily. Also,
it should have an ability to make firm decision in respect of its business interest. For
making employees more motivated it should consider their creative ideas and concepts.
 Disciplined – One of the most important skill is related to its disciplined nature i.e.
Should have more focus on business plans so as to make improvement as required. Also,
it should emphasize on adopting preventive measures for reducing risk & cost expenses
related to unproductive business operations so as to have high profit.
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LO3
P6 Entrepreneurial aspect reflects entrepreneurial motivation and mind-set:
Motivation and mind-set of an entrepreneur can be understood by the big five trait model.
Openness-
This reflects the welcoming of the ideas which are brought up by the entrepreneur the
sense in which they think and tackles the situations with the work done. This aspect is also
related to Peter Jones because he is quite open minded In his nature which shows that, he
develop many ideas in order to reach his own business at success level. Further, this mind-set
also assist an entrepreneur to keep develop new ideas in order to take their business at success
level.
Conscientiousness-
This quality shows that the habit of good as well as impulsive in nature that assist to meet
the goals. Peter Jones, inventor of dragon dens, is highly innovative in nature. He always strives
to think and implement different tactics which helps in gaining competitive edge over others. In
addition to this, he lays more emphasis on setting and meeting deadlines with the motive to get
desired level of outcome or success (Dana, 2018). This shows how consistent entrepreneur is
with the work and the ways of improvement which are brought in the work.
Extraversion-
This is another ability which reflect that a person is talkative and easily express their
emotion to each other. For instance, Peter Jones gained popularity and worked for welfare of
people by contributing range of amount to charity and this in turn assist her to become a
millionaire. He worked with motivation and innovation which helped in gaining the financial
help. A sense of doing something extraordinary can be reflected with the work they do and the
achievements that are carried out can be are reflected through the extraversion.
Agreeableness-
A person who posses this skill are easily agree to other's perception as well as their
vision. Peter Jones listened to her subordinates while working for developing his own production
house which gave him a lot of experience from entrepreneurs from which he learned how to
complete a mission and vision of the organization. He agreed by stepping in with the knowledge
about the world. The sense of listening to the employees which reflects a personality of the
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entrepreneur which can be used to determine the reflective sense in the ways he treats the
workers within the organization. This quality of agreeing to the point which reflects the
personality and attitude of entrepreneur.
Neuroticism-
This quality state that an entrepreneur may be sad or moody, which reflect that they have
instability in their emotions. Therefore, people who posses this trait may also suffer from the is
type of quality are low and did not emotionally stable. Peter Jones was low on this issue he
controlled himself when he was facing difficulties in life. At the time of struggle, he has faced
many difficulties phase but he defeat that with period and start making efforts and now he is
known among the top successful entrepreneur. With a lots of regrets and unethical manner from
the world he managed to be a successful person and somehow he managed to overcome and for
now he inspires many of the people (Ramadani and et.al., 2015). This reflects the personality of
the entrepreneur which tells about the social well-being of the personality traits which reflects
the entrepreneur.
P7 Experience hindering entrepreneurship
In case scenario of Peter Jones, when it comes to background he lives in Beaconsfield,
South Buckinghamshire with his family including partner named as Tara and three children.
Peter gets separated from his first wife Caroline. For an entrepreneur, it is very much essential to
have strong plans as well as strategies related to successful completion of business operations
(York, O'Neil and Sarasvathy, 2016). Also, by making as well as implementing sound business
policies all the factors which are creating negative impact on business performance can be
mitigated.
Background: Peter David Jones, CBE is a British entrepreneur, businessman and reality
television personality. He has keen interest in the field of mobile phones, television, media,
leisure, retail and property. The business operations of an entrepreneurial venture usually get
fostered by large number of factors which later on acts as hindrance and affects its business
operations to be performed in smooth manner. Factors fostering business of an entrepreneur
includes lack of resources, education level, cultural and social beliefs, economical as well as
technological aspects. By taking preventive measures an entrepreneur can eradicate such impact
and can made business functioning more effective.
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Experience: Peter David Jones was engaged in giving computer classes when he was
only a 16-year-old boy. It was also analysed that his computer business failed by which he was
really disappointed. By inculcating the best business approach and concept different from other
entrepreneurial venture, the success as well as growth level differs. On gaining deep insight
about cultural as well as social norms, beliefs which forms basis for customers decision-making
process, an entrepreneurial venture can make changes in its business processes accordingly.
Also, by making use of the best different tools including benchmarking, key performance
indicators etc. Evaluation can be done that which standards are being followed by successful
entrepreneur for making their entrepreneurial venture more developed and successful. Also, it
will help in bringing in improvement in own business performance thereby providing benefits in
form of high profitability as well as productivity.
In case of Peter Jones, for becoming successful entrepreneur he makes focus on those
business areas which are required to be developed and improved (Burns and Dewhurst, 2016).
Also, by identifying risk as associated with business thereby considering the best ideas, thoughts
& changes relevant for mitigating it he has been able to made his business more developed.
Sometime, capturing of current market opportunities with the aim of converting it into business
processes also affects the business functioning. As without making any plan and having
budgetary frameworks, it can affect the financial position as well as profitability aspect of an
entrepreneurial venture.
For making business growth, it is required on the part of entrepreneur to have positive
attitude along with futuristic approach accordingly. It further assists them in capturing market
opportunities as arising so as to seek competitive advantages in the market place (Block and
et.al., 2015). By having better understanding related to the needs of customer group, Peter Jones
along with its capability as well as best entrepreneurial skills in relation to better performance of
entrepreneurial venture, has been able to deliver better quality of products as well as services
across the globe. It has thus resulted in attainment of more satisfied customer base and building
of customer loyalty base for the company in the near future for long run time period.
CONCLUSION
Study can be summarised as private, public are many ventures and working of each
venture is different. The brief exploration of the various similarities and differences between
various venture. Assessment done on the basis of various micro and small business which has
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impacted on the economy and the ways to minimise the economic impact. Importance of starts-
ups and importance of small business start-ups and growth of social economy. Characteristic,
traits and skills of successful entrepreneurs that separates from other business entrepreneurs.
Ways and aspects in which the personality of the entrepreneur is reflected which protrudes
motivation and help other in changing the mind-set of the other by the means of reflection which
helps in motivating others and developing a sense of safer working. The use of relevant examples
which shows the ways how the past can affect the future personality traits and help in the
development of individual. This study concludes the various traits and personality in the nature
and behaviour to improve the skills as an entrepreneur.
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REFERENCES
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