Entrepreneurship and Small Business Management

This report covers information about various business enterprises that operate in an economy. It explains the different types of entrepreneurial ventures, their similarities and differences, and the impact of micro and small businesses on the economy. It also discusses the characteristics, traits, and skills of successful entrepreneurs that differentiate them from other business managers.

Unit 9 Entrepreneurship
and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1) Different types of entrepreneurial ventures.....................................................................1
P2) Similarities and differences between entrepreneurial ventures.......................................3
LO 2.................................................................................................................................................5
P3) Impact of micro and small business on the economy......................................................5
P4) Importance of small business and business start-ups in social economic growth...........6
LO 3.................................................................................................................................................7
P5) The characteristic, traits and skills of successful entrepreneurs that differentiate them from
other business managers.........................................................................................................7
P6) Assessment of how entrepreneurial personality aspect reflects entrepreneurial mindset and
motivation.............................................................................................................................10
LO 4...............................................................................................................................................11
P7) Impact of background and experience on entrepreneurship..........................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is known as the procedure develop a new business venture based on a
concept of innovative business idea with the aim of attracting large number of customers.
Further, entrepreneur is known as the individual that handle all the responsibilities and control all
the activities related with new business venture and is also the one that bear all the risk (Morris
and Kuratko, 2020). Small and medium enterprises play a huge role in economic development of
every economy as these are the one that provide employment opportunities to local people of
country and also provide innovative solution to people problems. This report covers information
about various business enterprises that operate in an economy. Further, also explain about
various similarities and differences among various enterprises. In addition to this, present project
contain information about various skills, characteristics and traits of successful entrepreneurs that
make them successful and different from other business managers.
LO 1
P1) Different types of entrepreneurial ventures
The term Entrepreneurship is mainly related with the will and the act of an individuals or
group of people who works towards creating a new or more innovative business to have better
profit along with transforming the world through bearing all possible risk and threats associated
with creating a business venture. Thus, entrepreneurial venture comprises of creating and
building a more innovative and new product or services for new life-changing solution and
enhanced profit level. Thus, a range of different types of entrepreneurial ventures are present
within an economy a description of which is provided as below:
Large entrepreneurial ventures- This type of entrepreneurial venture mainly comprises of
big multinational companies which require large amount of finance in its development and
creation. The scope of large entrepreneurial venture comprises of more focus and emphasis on
creating and earning higher amount of profit thus, they tend to be more focused towards there
expansion and growth at global level to have a larger target market. Further, growth of a larger
entrepreneurial ventures is mainly depends on the amount of finance and money requirements
along with a huge workforce to perform its various takes and complicated operation in effective
manner for achieving the aim of profit maximization (Park and LiPuma, 2020).
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Small business entrepreneurial ventures- These are mainly a small size business
organisation the scope of which is limited to its domestic or local geographical boundaries. The
growth and development of small business entrepreneurial ventures requires only a limited
amount of financial resources along with limited workforce thus, provides equal opportunities
for all people to work on their innovative ideas. In UK, a small entrepreneurial ventures is one
that is having a workforces consists of less than 250 employees (Schjoedt, 2020).
Social entrepreneurial ventures- These business ventures are mainly focused on welfare
of society and works for supporting vulnerable and weaker section of community. Thus, the
scope of Social entrepreneurial ventures consists of making efforts for brining a positive change
to the world where all people get there basic rights and amenities by supporting and helping iyt
the weaker and vulnerable section. Farther the growth and development of a social
entrepreneurial ventures is mainly depends on the charity and donation by its members (Zhao
and et. al., 2020).
Scalable start-up entrepreneurial ventures- These business start ups are mainly related
and associated with the bringing enhanced level of innovation and creativity in the world.
Therefore, the main scope of scalable entrepreneurial ventures comprises of making use of ore
efficient and advance technology in order to create and produce something new and more
innovative. Thus, an adequate amount of finance along with relevant skills and creativity level is
required for the growth and development of a scalable start up entrepreneurial ventures (Ko,
Wiklund and Pollack, 2020).
Typology of entrepreneurship
Typology main reflects and comprises of a group of people or individuals that tend to
have some similar or common traits or characteristics. The Entrepreneurship are bifurcated into
following typology on the basis of their common traits and characterises.
Lifestyle entrepreneurs- The common focus and main emphasis of lifestyle entrepreneur
consists of earning an income and profit level that is essential to meet a certain level of quality
and allows an individuals and group of people to survive in a better way. The other trait of
lifestyle typology consists of setting regular gaols which are associated with the betterment and
improvement in the lifestyle of people. Therefore, scalable starts up seemed to fall under lifestyle
entrepreneurs as they may use of continuous innovation and creativity to have a better lifestyle
and aim at brining improvement (Christensen, Lægreid and Rovik, 2020).
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Survival entrepreneur- The main focus and emphasis of survival entrepreneur is
ensuring a long term success and smooth flow of operations to overcoming all forms of recession
and issues in business. Thus, the small business entrepreneur tend to belong to survival
entrepreneur which aim at surviving and staying alive for longer time period through earning and
making an adequate level of profit. The another common characteristics and trait of survival
lifestyle consists of cost cutting and laying off employees to save cash and maintain a constant
profit margin for longer term (Mazzarol and Reboud, 2020).
P2) Similarities and differences between entrepreneurial ventures
The main similarities in the main four types of entrepreneurial ventures comprises of
Large, small, social and scalable entrepreneurship are provided as follows:
 Aim at having a proper coordination and workplace balance among its employees and
activities to ensure better achievement of set targets and objectives.
 Having a common objective of providing high level of satisfaction to its customers,
clients and other stakeholders in order to ensure and lead a long term success and better
growth of their business (Hughes and Troy, 2020).
 Apart from this, all forms of ventures entrepreneurial ventures tends to provide a positive
ad safe working environment for its employees in order to boost there motivation and
performance level for better accomplishment and timely achievement of set goals.
Difference between entrepreneurial ventures
Basis Small Business entrepreneurial
ventures
Large entrepreneurial ventures
Operation level Have a simple organisational
structure and operation level with
limited operation and function.
Tend to have a complex
organisational structured divided
and bifurcated into various
operation and functions (Mazzarol
and Reboud, 2020).
Objective To earn an adequate and significant
amount of profit to meet a viable
standard of living through
effectively meeting day to day
Have an objective of expansion and
better growth at global level in order
to have a larger target market for
maximization of profit.
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expense.
Geographical area
served
Operates within local or domestic
geographical area.
Tends to operate at national and
global level.
Number of
employees.
The number of employees between
small business entrepreneurial
ventures tends to range between 1-
250 employees (Farahani and
Alvandi, 2020).
Have a large workforce which
comprises of more than 250
employees.
Basis Scalable entrepreneurial ventures Social entrepreneurial ventures
Objective Main objective of this type of
entrepreneurial ventures is creating
more innovative and advance
products and services to brig positive
transformation in world.
The main aim and objective of
social entrepreneurial ventures is to
create equality in society by the
way of helping and supporting
weaker and vulnerable section of
society.
Nature These are mainly private
organisation created by some
creative and innovative individuals
with the aim of earning better
revenue.
The nature of social entrepreneurial
ventures are mainly non profit and
they would not aim at maximizing
or earning any kind of extra revenue
(Freixanet, Rialp and Churakova,
2020).
Financial need A considerable amount of finance
and monetary fund is needed meet
the expense and cost of new
innovation.
Charity and donation made by the
members of social enterprise is the
main sources of finance for theses
type of entrepreneurial ventures.
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LO 2
P3) Impact of micro and small business on the economy
A vital role and positive impact is lead by micro and small businesses on the development
of the economy of UK through solving and addressing the issue of unemployment along with
leading vital contribution in enhancing GDP and growth rate of the economy (Andersson and
Koster, 2016). Micro and small business tend to provided equal level of job opportunity for all
employees through leading a venture through requirement and use of minimum resources and
assets thus, tends to have a positive impact on economy. The below stated graphs are providing
relevant data and statistics to illustrate the positive impact of micro and small business on the
economy of UK.
Figure 1: Proportion of employment, turnover and business in various sector of UK, 2017
Interpretation
The above bar graph is providing information that small business are most important and
vital for the efficient growth of economy of UK as they makes and contribution for around 48%
of total employment of UK along with leading a total 33 % of turnover that makes the part of
99.3% of total contribution of private business sector. Thus, an analysis can be made that a vital
part is contribute by small business in term of booth employment and productivity. Further, it has
been also interpreted from above bar graph that medium business seemed to have 14% part in
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turnover while 12 % part in total employment. On the other side, the large enterprise seemed to
have a contribution of only 0.1% participation in business and 40% contribution in employment
and 53% turnover (UK SME Data, Stats & Charts, 2017).
Figure 2: Statistical data about businesses entrepreneurship of UK, 2019
Interpretation
The above statistical table is clearly showing that that small and medium business are
having a maximum amount of contribution in turnover as well as in number of business
therefore, a vital crucial role is played by micro and small business in growth and development
of an economy. It has been observed that Small business are those which tend to have 50 to 259
employees where as micro organisation are have around one to 49 employees where as large
organisation are have more than 250 employees (Essential Facts You Should Know about SMEs
in the UK, 2019). Further, in UK, 76.0% business are with no employees(mini business) whereas
as 23.3% are hold by micro business and 0.6% are small business and only 0.1% are accounted
by large organisation.
P4) Importance of small business and business start-ups in social economic growth
An analysis can be made out that a vital and important role is played by business and
business start-ups in social economic growth through leading essence of equality in society by
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the way of providing and leading equal job opportunity for all individuals without need of huge
finance and assets (Lee, Lee and Shim 2016). Further improvement in living standard is also
facilitated by the small business and business starts up through providing better quality products
and services at much affordable prices. The importance of small business and business start-ups
at local, regional, national and international level is provided as below:
Local level- Higher level of job opportunity for local people and individuals is provide by
small business and new business start ups at local level that contributes in overcoming and
address the issue of poverty through providing better standard of living at local level through
providing a fair job opportunity for all people.
Regional level- Protection to regional and traditional art and craft is provided by small
business and starts up at regional level through providing a better opportunity and platforms for
regional artist and talents to show and make use of their art for earning money. Further, better
quality products at much more affordable price are also lead by small business at regional level
(Acs, Szerb and Autio, 2017).
National level- Solution for the issue of unemployment and poverty is provided by the
small enterprises and business start-ups at national level through enhancing the growth rate and
also contributes in GDP to have a better growth rate of economy and facilitates solution for
national problem like unemployment and poverty.
International level- On context of international or global level better foreign exchange
and enhancement in foreign reserves is lead by small business through increasing the
productivity level of a nation. Beside this higher FDI and better investment opportunity are also
grab and attracted by small business and start ups by leading enhance level of innovation and
creativity (Turner and Gianiodis, 2018).
LO 3
P5) The characteristic, traits and skills of successful entrepreneurs that differentiate them from
other business managers
Some traits, characteristics and vital skills are passed by successful entrepreneur which
makes them different and better than other business manager an analysis of which is provided
below on the basis of analysis of Issa Brothers.
Zuber Issa
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He is a British billionaire and majority stakeholder in Asda the main characteristic, traits
and skills of whom are provided below:
Trait
 Innovation- This is the trait that provided the capability of offering something unique
and better to met the need and wants of customers in more effective and better manner.
High level of Innovation trait is present in the Zuber Issa which makes them capable to
come up with the attractive and better products and services to attract and cater larger
number of customers which makes him different and better than other business manner
who seems to lack this trait (Chen and Thompson, 2016).
 Determination- High level of determination is present in Zuber Issa which makes him
more determined and focused in defeating and encountering all possible business
complexities and uncertainty in a more better and effective manner. On the other hand,
business manager lacks such level of determination in their work thus, not able to
overcome uncertainties of business environment.
Skills
 Communication skills- It is the most vital and important skills for a successful
entrepreneur which makes them able to effectively interact and communicate with
various associated parties. Use of effective communication is made by Zuber Issa to
direct and guide its employees and other associated stakeholders for betters success of
business. On the other side, business manager finds it difficult to communicate
effectively with other (Kraus and et. al., 2019).
 Motivation skill- Effective motivation skills are also posed by Zuber Issa which makes
him able to direct and influence its business investors and other shareholders along with
its employee’s for better performance to ensure higher level of success and performance.
Business manager finds it difficult to motivate and influence other thus, not able to attract
much investors for success of their business.
Characteristics
 Flexibility- It is a vital trait of Zuber Issa that provides a high level of strength and
adaptability for Zuber Issa to face and encountered any kind of adverse situation along
with helps him to set a perfect balance with dynamic nature of business environment
thus, contributes in his success. The business managers lack such level of flexibility thus,
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cannot cope up with adverse business situation and find it difficult to set a balance with
changes in business environment (Morris and Kuratko, 2020).
 Self-Motivation- This characteristics of Zuber Issa keeps him motivated and directed
towards achievement of goal along with regular encouraging him to acquire better
success in market by the way of enhanced motivation level. The managers lacks this
characteristics of motivation thus, feel discouraged and unsatisfied in their job.
Mohsin Issa
He is also a successful British billionaire with a majority stakeholder in Asda group with
his brother Zuber Issa.
Trait
 Modesty- It is one of the most vital trait of Mohsin Issa which makes him unassuming or
moderate in the estimation of one's abilities to accept criticism and understand their
internal ability. This trait of Modesty is not present in business manger thus, not able to
face and overcome criticism (Park and LiPuma, 2020).
 Curiosity- This a trait that keeps Mohsin Issa interested in learning new things and better
ways of doing and performing his jobs through enhanced knowledge which enhance the
success and growth level of a business enterprise through leading a continuous learning
process. Lack of curiosity is seen in business manager thus they tend to use their old and
traditional ways of operations that are not much effective in getting success.
Skill
 Leadership- This skill of Mohsin Issa makes him a soft spoken person to effectively
influence and direct his colleagues and other business partners for better performance that
is not seen in business managers (Schjoedt, 2020).
 Creativity- This skill makes Mohsin Issa able to come up with more innovative and new
products and services to attract and cater interest of larger number of customers and
inventors for better success of business. Mangers lack in this skill of creativity thus, not
able to attract larger number of customers.
Characteristics
 Planning- It is a vital characteristics of Mohsin Issa which makes him able to effectively
lead out a plan for better success through leading proper management and orgnisation of
all provided resources and assets. Further, effective planning also lead to easy grab of
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opportunity and resolving of threats that is lacking in business manager (Zhao and et. al.,
2020).
 Passion- The characteristics of passion works as a fuel for Mohsin Issa which brings
enhanced success by the way of maintaining his enthusiasm and interest to devote
themselves to the success of venture. This level of passion is not seen in managers thus,
they get diverse and destructed from the path of success.
P6) Assessment of how entrepreneurial personality aspect reflects entrepreneurial mindset and
motivation
Concept of personality reflects how an individual react and behave in a particular situation.
Every person has their own way of thinking and decision making process that largely affect their
life and the decisions they make. Mainly there are five dimensions of personality defined by
experts. Zuber and Mohsin Issa the two successful entrepreneurs. Their type of personality can
be understood by the help of model called Ocean personality. Five dimensions of personality
defined under this model can be understood by following points:
Openness: As per this dimension of personality model, these individuals are the one that are
very creative and always remain curious and open to explore new concepts. These types of
individuals never get afraid from new concepts. Zuber and Mohsin Issa both comes under this
category of personality as they both explored new things and think very creative to attain success
(Ko, Wiklund and Pollack, 2020).
Conscientiousness: As per this dimension of personality model, individuals that tend to be
focused towards their goals and thoughtful are fall under this category. Further, these individuals
are the one that do various efforts to achieve their set goals and to become more successful.
Extraversion: Individuals that fall under this personality dimension are the one that always
remain outspoken, interactive and always remain involved in social interaction. One of the main
advantage of this personality type is that it helps in communicate easily with people that help in
achieve desired goals.
Agreeableness: As per the OCEAN personality model, individuals that consists various
features such as affection, trust and kindness are come under the category of agreeableness
(Christensen, Lægreid and Rovik, 2020).
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Neuroticism: This category define about the individuals that have feature of emotional
stability. Feature of this kind of personality is that it help in manage various situations that
consists stress and anxiety.
LO 4
P7) Impact of background and experience on entrepreneurship
A significant effect is lead by background and experience on success and failure of an
entrepreneurship which can be understood with the help of following examples:
Zuber Issa and Mohsin Issa
Background – Both Zuber Issa and Mohsin Issa are a British billionaire businessman and
a founder of Euro Garages which is a chain of petrol filling station operating in various laoction
of United Kingdom and Europe as a part of a consortium with his brother Mohsin and TDR
Capital, he is also one the majority stakeholder in Asda. Both Issa brothers were born in
Blackburn came from Bharuch Gujarat, India to the United Kingdom with there parents to work
in the textile industry and soon they owned a petrol station. Further, both Zuber Issa and Mohsin
Issa were educated at Witton Park High School (Mazzarol and Reboud, 2020).
Experience- in starting days of his, Zuber Issa life took out a lease on a garage, and saved
up the money to buy their first petrol station. Issa co-founded Euro Garages with his brother,
Zuber, in 2001, with the acquisition of a single petrol station in Bury, Greater Mancheste.
Mohsin Issa is havng a role vital in the business through managing day to day activity where as
his brother, Zuber, is acting as responsible for all strategy and acquisitions work in the
business(Hughes and Troy, 2020).
On the basis of above discussion, an analysis can be made that Zuber Issa have high
curiosity and innovation level that supported him to become a successful entrepreneur where as
the creativity skills and leadership quality of Mohsin Issa gained from his life experience and
background has lead to his development as a successful entrepreneur. It has been also observed
that characteristic of flexibility in Zuber Issa through which he become able to make changes in
actions in least possible time along with the Determination leads the entrepreneur to gain
success. Thus, it can be evaluated that the background Zuber Issa and Mohsin Issa of is basically
comes and belongs to economically weaker part and section of the society which motivates them
to strive and work harder for the success in order earn better profit through an effective and well
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managed business therefore, provided direction to buy and start business through buying a petrol
pump which lead to huge success to become a more successful and billionaire business men.
CONCLUSION
From the above given information, it can be summarised that small and micro enterprises are
the one that play a significant role in economic development of a country. As these are the ones
that provide a platform to local people of country so they can show their skills and talent a d can
earn their livelihood. Different type of entrepreneurial ventures are there that operate in an
economy. Large ventures are the one that require large amount of human resources, financial
resources and technology in order to operate and to achieve their set objectives. While, on the
other hand, small enterprises requires a limited amount of resources to operate. Certain skills,
traits and qualities are there that should be there in an individual in order to become a successful
entrepreneur. Various elements are there that affect the success and failure of an entrepreneur,
education, background and national culture are one of them.
REFERENCES
Books and journal
Acs, Z., Szerb, L. and Autio, E., 2017. The global entrepreneurship index. In Global
Entrepreneurship and Development Index 2016 (pp. 19-38). Springer, Cham.
Andersson, M. and Koster, S., 2016. Are start-ups the same everywhere? The urban–rural skill
gap in Swedish entrepreneurship. In Geographies of entrepreneurship (pp. 140-160).
Routledge.
Chen, L. W. and Thompson, P., 2016. Skill balance and entrepreneurship evidence from online
career histories. Entrepreneurship Theory and Practice. 40(2). pp.289-305.
Christensen, T., Lægreid, P. and Rovik, K. A., 2020. Organization theory and the public sector:
Instrument, culture and myth. Routledge.
Farahani, H. and Alvandi, M., 2020. Explanation of entrepreneurship small business challenges
in rural area, The case of study: Bijar, Iran. Scientific Journals Management System,
20(58), pp.105-119.
Freixanet, J., Rialp, A. and Churakova, I., 2020. How do innovation, internationalization, and
organizational learning interact and co-evolve in small firms? a complex systems
approach. Journal of Small Business Management, pp.1-34.
Hughes, R. C. and Troy, M. A., 2020. Small business energy challenges and opportunities. In
Energy Transformation Towards Sustainability (pp. 239-248). Elsevier.
Ko, E. J., Wiklund, J. and Pollack, J. M., 2020. Entrepreneurial Team Diversity and Productivity:
The Role of Family Relationships in Nascent Ventures. Entrepreneurship Theory and
Practice, p.1042258720902058.
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Kraus, S. and et. al., 2019. Digital entrepreneurship. International Journal of Entrepreneurial
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review. In Pacific Asia Conference on Information Systems (PACIS). Association For
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Mazzarol, T. and Reboud, S., 2020. Innovation in Small Firms. In Entrepreneurship and
Innovation (pp. 131-164). Springer, Singapore.
Mazzarol, T. and Reboud, S., 2020. Work Book: The Role of the Small Business Within the
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Morris, M. H. and Kuratko, D. F., 2020. Venture types: what entrepreneurs actually create. In
What do Entrepreneurs Create?. Edward Elgar Publishing.
Park, S. and LiPuma, J. A., 2020. New venture internationalization: The role of venture capital
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Schjoedt, L., 2020. Exploring differences between novice and repeat entrepreneurs: does stress
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Turner, T. and Gianiodis, P., 2018. Entrepreneurship unleashed: Understanding entrepreneurial
education outside of the business school. Journal of Small Business Management. 56(1).
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Zhao, W. and et. al., 2020. Entrepreneurial alertness and business model innovation: the role of
entrepreneurial learning and risk perception. International Entrepreneurship and
Management Journal, pp.1-26.
Online:
Essential Facts You Should Know about SMEs in the UK. 2019. [Online]. Available Through:
<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>
UK SME Data, Stats & Charts. 2017. [Online]. Available Through:
<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/
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