Entrepreneurship and Small Business Management

This document discusses the meaning of entrepreneurship, different types of entrepreneurial ventures, their relationship to typologies of business, and the skills and attributes of entrepreneurs. It also explores the impact of small and micro businesses on the economy and the significance of small business and start-ups to the growth of the social economy.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Types of entrepreneurial ventures and its relationship to different typology of
entrepreneurship.....................................................................................................................3
P2 Various similarities as well as difference in between various entrepreneurial ventures...5
TASK 2............................................................................................................................................7
P3 Data and statistics which explains impact of small and micro businesses on economy...7
P4 Determine the significance of small business and start-ups to the growth of the social
economy.................................................................................................................................9
TASK 3..........................................................................................................................................10
P5 Attribute and skills of entrepreneurs...............................................................................10
P6 Analyze how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind set..........................................................................................................................12
TASK 4..........................................................................................................................................13
P7 Analyse effect of background and experience on entrepreneurship...............................13
CONCLUSION:.............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
A person who is responsible for a new business idea and who execute a new plan along with all
risk and circumstances attached with it in order to gain profit out of that business is called an
entrepreneur(Patiño, Arias and Pérez, 2020). Ideas used by entrepreneurs are those which have
never been thought of by anyone before. Entrepreneurship starts when these ideas are turned into
business and brought in market. In an entrepreneurship designing, introducing as well as
launching the new product or service into market. Simon and his brother Bobby Arora launched
an entrepreneurship venture which was named B&M. It is a chain of home wares which has now
spread worldwide. Following report discusses about meaning of entrepreneurship, various kind
of entrepreneurial ventures, how does it effects various types of economy and various skills a
person requires to become an entrepreneur. At last this report also contains detail on how a
person’s family background and culture they are brought up in effect entrepreneurial quality in
them.
TASK 1
P1 Types of entrepreneurial ventures and its relationship to different typology of
entrepreneurship
An entity which has uses opportunities and innovation to run business in an economy are
entrepreneurial idea. Entrepreneurship is a process which entities are developed by taking risks
and uncertainties in order to gain profits and earn. These ventures are generally divided into four
different types:
Large Company Entrepreneurial Venture: These companies usually come up with some
product which are associated to its already existing products in market. These products are
launched in order to fulfil some need of customer and be in competition with others in market as
per latest technologies. Their main aim is expand their businesses. They usually buy out other
companies or usually partner with innovative firms. Various examples of such ventures are
YouTube Google, Microsoft etc

Scalable Entrepreneurial Venture: Scalable entrepreneurs are the ones who bring
innovative ideas in order to being a change in world. Their vision is much larger than other
entrepreneurs in the market. Scalable entrepreneurs are those who bring an idea to change the
world. They have a vision in which they are recruiting various skilled human resources. They
also search for suitable business models usually scalable enough to gain profits. Many examples
of such ventures can be Instagram, Fcaebook, various online shopping applications and many
more.
Small business Entrepreneurial Venture: These days a number of small businesses can
be seen running in marketplaces. In US almost 90% of businesses are small ventures which hire
a number of employees who are non-governmental (Mitra, 2019). Profit earning which they
focus on is only to fulfil their day to day needs. Capitalist are not interests in these small
businesses as they do not require much funds. They usually take help from their friends and
family to start business. Examples of such businesses can be carpenters, plumbers, consultants
etc. who start their business from their home itself.
Social Entrepreneurial Venture: These ventures develop product and services in order to solve
issues in market. They focus on making world a better place to live. They are also non- profit
organisation, profitable organisation or a hybrid of both of them. For example, SafePoint Trust
could be analysed. They are focusing on launching syringes which are reusable. They have tied
up with various small hospitals and clinics who treat patients who can’t afford expensive
treatments. Till now they have produced more than 4 billion such syringes and spread across in
41 countries in world.
All these are different ventures of entrepreneurship which are important in establishing
typologies of business. These typologies have a great effect on ways which business run and
decisions are taken by entrepreneurs. Some of these typologies are mentioned below:
Various typologies of entrepreneurs ventures-
Typology is when things are differentiated on the basis of their types. Basis on which
these styles are differentiated are plan, form, structure, style etc. Some of these typologies are as
followed:

Aggressive growth Ventures: They are those who use more advanced technology and
are more innovative then others. Their aim is to stay in market for longer period of time and
focus on growth. They usually focus on expanding their business globally. Large scale
enterprises are focusing on aggressive growth in marketplace.
Lifestyle Ventures: These are ventures who do not aim for expansion or growth but they
usually aim at providing satisfaction to its consumers. These ventures only have a limited
number of human resource. They run their business in a single place. A business organisation
which is working in single place can be said to be a lifestyle venture.
Managed growth Ventures: These organisations focus expanding their operations and
spreading their work throughout the world. Their aim is to generate higher profits and earn as
much as they can (Jazid, Ibrahim and Rashid 2019). They have a good management and they
look for skilled workers who will provide them good quality of products and services. Scalable
businesses are perfect example for managed growth.
Survival Ventures: they are ventures who focus on helping people with their basic
needs. They usually initiate businesses in order to higher the standard of living of people in
society. They help enhancing social status of people in society. Micro businesses are examples of
micro businesses.
P2 Various similarities as well as difference in between various entrepreneurial ventures
Similarities Social enterprise Scalable
entrepreneurial
ventures
Large company
entrepreneurial
ventures
1 They usually focus on
just fulfilling needs of
people who are
surviving tin society.
They deeply study
requirements of
people and then
innovate such
products which will
fulfil their needs and
requirements.
They also fulfil needs
and wants of customer
but they generally
operate in a very large
scale.

2 Their main focus is to
improve living
standard of people.
They also enhance
conditions of
economy.
Profits generated from
these organisations are
used again in research
and technology. They
aim at innovating and
introducing new
products and services
in market
Some of profit earned
by these organisations
are used in order to
improve conditions of
society. These
activities are named as
corporate social
responsibility which
means responsibilities
that an organisation
have towards a society
in which it is operating
its business.
Differences Social enterprise Scalable
entrepreneurial
ventures
Large company
entrepreneurial
ventures
1 Major Aim . These organisations
do not aim at earning
profit but they work to
make world a better
place for living. They
focus on solving
problems which
prevails in
society(Kuratko, D.F.,
2016).
They focus on
bringing new
innovations in world.
Their main motive is
to make people aware
of new innovations
and opportunities.
They also look for
people who are
interested in their
ideas and might invest
in it.
Innovation take place
in such organisations
only to attract
customers in larger
number. This will help
them increase their
reach and increase
their revenues
resulting in more
profits. Their aim is to
spread their business
globally.

2 Hiring Processes They do not focus
much on their hiring
process. People
usually joint such
organisations and
leave as per their
comfort. Hiring
process in not given
much weightage,
They aim at recruiting
people who are highly
skilled. These highly
skilled man force will
contribute towards
profits and success of
enterprise. Hiring of
skilled workforce is
required.
Here hiring is done
from a number of
locations in world.
They do this so that
activities can be
performed in an
effective and efficient
manner. Hiring in such
organisations include
deep understanding of
various customs of
different regions.
3 Examples: Examples of such
enterprises are Hill
holt Wood, Café
Direct etc.
Examples of these
entrepreneurship
ventures are Facebook,
Instagram, YouTube
etc.
Examples of this
ventures can be
Microsoft, Apple,
Yahoo, Samsung and
so on.
TASK 2
P3 Data and statistics which explains impact of small and micro businesses on economy
Small Business: Companies which are independently owned by individuals, limited in size and
revenues of which depends simply on industry are small enterprises (Nambisan, S., 2017).
Examples can be any manufacturing unit which consists of 500 employees or employees less
than it. Example can be a furniture creating shop with around 22 carpenters.

Above graph depicts effects of such small businesses on UK’s economy. Interpretation of this
graph is mentioned below:
 Small businesses contribute 24% to UK’s economy.
 They have a positive effect on country’s economy leading to increased GDP.
 Government also takes benefits from this and increase custom duty to earn more.
 80% employment in economy is provided by them
 In this way they help in reducing unemployment in economy.
Small businesses are to be notified to HMRC, who is responsible for registration of their
tax system. SME's contribute to a major part of taxes which are paid to government. The basic
slab applicable on every company is applied here as well. However, businesses have a small
earning exception up to £6,365.00 and an upper earnings limit of £41,368.00.
Micro Business: These are those organisations who work on a really very small scale. These
organisations consist of 10 employees or less. Their balance sheet has less amount to depict and
also capital which is required to start such businesses is very less. It has been analysed that micro
business usually operates as sole proprietors and earn less than $250000 in a year. Examples for
these can be plumbers, mechanics, carpenters etc.

Below mentioned is analysis of graph above which depicts performance of micro
business in economy of UK:
 The above graph mentions that 17% is contributed by micro businesses towards
development of UK’s economy (Storey, 2016).
 .
 It provides a number of employment opportunities reducing unemployment in the
economy.
 They help government to charge more to foreign investors and gain higher revenues from
them.
 These come up with a number of innovative products and services which help in
growth of economy as well.
Impact of micro and small business on various economies:
Local Economy: Importance of small and micro businesses to local communities and economy
is usually emotionally rooted. This happens as buying and selling takes place between knowns
that are usually friends as well as neighbours. This are the only businesses which can survive in
places with small population. They have provided employment to a number of workers in
locally.
Regional Economy: Small and micro businesses are important for regional development of an
economy as well. This occurs as local resources are used and the profits generated from them
stays in same region. They however are sensitive to changes in regional economy and can go

bankrupt very soon. They also provide good infrastructure as well as a number of employment
opportunities in regional economy.
National Economy: These businesses have a great impact on national economy due to taxes.
They generate high revenues leading to higher profits and higher taxes along with property taxes.
Sales tax collection is also benefitted through these businesses. They help in improving bottom
line for a number of home owner’s which then results in higher collection of property tax at
various regions.
P4 Determine the significance of small business and start-ups to the growth of the social
economy.
Social Economy: In social economy, it includes both public and private sector. In this
process, One person can focuses on how value, norms and belief imposes direct impact on
attitude as well as behaviour of customer in both positive and negative manner. The main
purpose is to work for the welfare of society. After that, they focuses on maximize profit for a
longer period of time. The company that work in national and global level is considered as a
voluntary organisations (Burns and Dewhurst, 2016). There are different example of social
organisation can be a risk free point.
Four pillars in a social economy:
Mutual: It is the first and foremost pillar of an economy. It involves that company who
provide variety of services to its customer. The primal aim of this pillar is to offer effective
services to its user rather than gain revenue. Apart from this, these companies provide financial
support as well as job opportunities to the individual person for welfare of the society. In
addition to this, the main aim of company is to bring a positive change in society. They focuses
on providing wide range of products and services to the person for increasing their standard of
living at workplace.
Foundations: Foundation is that charitable as well as non-profitable organisation which
exists with the help of different organisation and institution. These foundations are only for
charity purpose such as education, religion and many more.
Charities: This pillar focuses on economic as well as social growth. They are group of
individual that emphasised on rising the various aspect of an economy.

Associations: The association is a group of person that describe the relationship between
individual and group of business organisation. There are different example of association which
includes friendship, co-worker and many more. Importance of start-ups and small business which
is going to be mentioned below:
Innovation: The start-up company focuses on providing innovative products and services
in order to attract ample of customer (Lipset, 2018). The manager of company make effective
strategies, policies and procedure in order to identify the need and requirement of customer. In
addition to this, they provide specific products to its user for increasing standard of living of
individual living in society. Through start-ups, it helps in bringing new as well as innovative
products in market in order to attract customers. In assistance of this, it also focuses on
contributing towards success and growth of social economy. Furthermore, the new start-up's put
some additional efforts and giving extra time for achieving and sustaining future success for a
long period of time.
Employment opportunities: It has been examined that the new start-ups provide
employment opportunities to worker that eliminate the unemployment rate in country. Therefore,
due to increase in small companies boost the job opportunity that is the reason of development of
social economy. In addition to this, they provide job opportunity in marketplace with the purpose
of recruiting capable and talented subordinate in order to achieve goal and objective of company.
In order to boost its market share as well as business for accelerating national revenue.
Decline in Poverty: They focuses on eliminating poverty within economy. The
innovative start-ups provide job opportunities for accelerating living standard of people in social
economy. The new start-up's focuses on providing job opportunities to those individual who
have talent and able to achieve goal and objective within given period of time. The main focus is
to reduce poverty as well as increasing their living standard.
It is important for small and new start-up company to create awareness towards the
charity and donation. They also focus on giving charity to individual for increasing their standard
of living. In addition to this, they offer employment opportunities to those person who possess
ability and competence for accomplishing objective and goal within given time period.

TASK 3
P5 Attribute and skills of entrepreneurs
Skills Simon& Bobby Arora
 Curiosity- An
entrepreneur is always
curious about the work
and new approaches
which give rise to the
business. Simon&
Bobby Arora always
find curiosity in their
work and which leads
to success.
 Influencer- Simmon &
Bobby Arora are then
big influencer in
market as they have the
power to change other
decisions.
Richard Branson
1. Uniqueness- Richard
Branson thinking is
different from others
and this skills leads to
new ideas.
Characteristics  Passionate- An
entrepreneur is always
passionate in life.
Simmon & Bobby
Arora always remain
passionate about the
business and having
more opportunity.
 Money Minded- Every
business only runs with
motive profit making.
Richard Branson is a
money minded person
and always focus on
profit and sales of
business.

TRAITS
Innovation- Innovation is
important in business to
survive in market and to
acquire more profit share
growth. Simon & Bobby Arora
were innovative as well as
creative towards their business
and this makes them
successful.
Rigid- Situations and
outcomes of business makes a
entrepreneur rigid in nature.
Simmon & Bobby are rigid in
nature towards their business
(Schaper, 2016).
Innovation- Richard Branson
also uses the innovative
approach of diversified
business across the globe. This
innovative thinking of Sir
Richard Branson makes
created a big change in market.
Flexible- It is important for
successful entrepreneur to be
flexible because change are
about happen in business so,
Sir Richard Branson is flexible
and evaluate the market trends
as well as change.
Difference between entrepreneurs & business managers
Dimensions Entrepreneurs Managers
Definition The ones who are creative and try to
bring innovative products & services in
market in order gain profits are called
Entrepreneurs.
Managers are those who manage
others in order to get their work done.
Focus They aim at coming up with new ideas
and innovations in order to fulfil hidden
needs and wants of society.
Objective of managers is to complete
task in given time frame. (Rahayu,
2017).
Status Returns received by them are for risks They are not owners of company.

they are undertaking in their ventures. They work for their salaries and
incentives. No risk is attached to their
work.
Motivation They are motivated by profits which
their ventures bring them.
Incentives and target achievement are
their motivators.
There are various differences between entrepreneur and manager is that, the entrepreneur
brings innovation at workplace while manager focuses on managing the different activities and
functions in better way. In addition to this, they undertake risk for the success and growth of the
company whereas, the manager work on the salaries as they coordinate different task and
activities for achieving the goal and objective of business organization.
P6 Analyse how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind set.
A trait includes attitude, motive as well as motives which assists in increasing experience of
individual is known as entrepreneurial personality (Cooper and Folta, 2017) The trait of both
entrepreneur Bobby and Simon Arora which is going to be mentioned below:
Simon and Bobby Arora: They are two brothers who operate successful organization named as
B and M. They offer superior quality home wares to customer in order to satisfy them. In
addition to this, they encourage other start-up company that helps them in being a successful
entrepreneur. They grab numerous opportunities by taking risk in order to boosting profit of
organization. The main focus is to become successful entrepreneur in the market.
Richard Branson: He is one of the famous philanthropist and entrepreneur as well as he
founded the company named Virgin in the year 1970. He has a leadership quality in order to
motivate employees to perform well within organization that helps in boosting productivity of
company. The leadership quality of Richard Branson is one of the reasons of their success.
They both have a support of their family that helps them in becoming a successful
entrepreneur at workplace. In addition to this, they have a skill and knowledge to perform
different business activities and functions in better way. They undertake risk for achieving
maximum return which helps them in becoming a successful entrepreneur at marketplace.

TASK 4
P7 Analyze effect of background and experience on entrepreneurship
Every entrepreneur thinks differently as well as they make strategies for future growth and
development in different manner. They focus on bringing new and innovative products and
services within marketplace. This report shows two entrepreneur named Simon & Bobby Arora
as well as Richard Branson.
Simon and Bobby Arora: Simon was born in 1969 as well as finishing their studies from
Cambridge institute (Kuratko, 2016).He is the CEO of retailing chain company whose name is
B&M. The family of both brothers is very cooperative and encourages them to bring innovation
in market. Beside from this, they also faces different issues and challenges when they start their
business. In present time, They become successful entrepreneur of company named as B and M.
Richard Branson: Richard Branson was born in 1969 as well as become successful
entrepreneur in market. He became a successful entrepreneur of company names as Virgin. He
believes in traits, characteristics as well skills that helps him in becoming a successful
entrepreneur in marketplace. He also faces many problems in their young age but through the
support of family he will become successful entrepreneur. In addition to this, the supportive
family is also the reason of success of Richard Branson.
There is large number of experience faced by the entrepreneur before start the new
business to become successful entrepreneur within marketplace.
Simon Arora faces many issues and challenges while he launch his first television in the
year 2001. It is one of the best experiences of Simon in order to become successful entrepreneur
of organization. He achieves the leading position at marketplace. Apart from this, they undertake
risk in order to achieve higher return in the market.
Bobby Arora is one of the successful entrepreneurs who introduce the retail chain
company named as B & M. Through his success, he faces difficulties and problem but due to the
support of family they achieve the success throughout their life. It helps in achieving fame all
around the world.
Richard Branson is one of the success entrepreneur as well as philanthropist. He faces
many problems and issues throughout their success. He launches mail-order record in the year
1970 this is the first achievement of Richard Branson. There are many problems faced by him in
order to become success entrepreneur of company.

CONCLUSION
From the above mentioned topics, it has been analysed that the entrepreneur and start-up's bring
innovative and unique products and services within market. This imposes both direct and indirect
impact on the economy. There are different activities and motives of enterprise which is
described in this report. The main aim of start-up company is to boost profit in order to increase
the standard of living of people living in society. In addition to this, they offer unique and
specific products to its customer in order to attract them. Along with this, the report shows how
family belief, values and faith give innovative ideas to become successful entrepreneur. Beside
from all these, the main purpose of every organisation is to earn more and more profit by
providing innovative and new products to its customer in order to satisfy them.

REFERENCES
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Nambisan, S., 2017. Digital entrepreneurship: Toward a digital technology perspective of
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Storey, D.J. ed., 2016. Entrepreneurship and New Firm: Theory and Policy. Routledge.