Unit 9: Entrepreneurship and Small Business Management

This report explores the concept of entrepreneurship and its significance in economic development. It delves into the key terms, types of entrepreneurial ventures, and the role of creativity and innovation in entrepreneurship. The report also examines the sources of business ideas, the importance of protecting intellectual property, and the contribution of small firms to various economic factors. Furthermore, it analyzes the factors that influence the decision to start a business and the risks and rewards associated with it.

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Unit 9 Entrepreneurship and Small Business Management

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Contents
Introduction.............................................................................................................3
Part 1:......................................................................................................................4
LO1.........................................................................................................................4
P1, P2, M1, and D1.............................................................................................4
LO2.........................................................................................................................7
P3, P4, M2, and D2.............................................................................................7
Part 2:....................................................................................................................11
LO3.......................................................................................................................11
P5......................................................................................................................11
P6......................................................................................................................11
M3......................................................................................................................12
D3......................................................................................................................12
LO4.......................................................................................................................14
P7 and D4.........................................................................................................14
M4......................................................................................................................14
Conclusion............................................................................................................14
Bibliography..........................................................................................................15

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Introduction
Entrepreneurship is the essential and basic element for social and financial
evolution. It conveys not only the national growth but also local and regional as well.
Thus, the overall entrepreneurship concept looks like modest, the overall functioning of
it is vigorous and multifarious and also the abilities of every single entrepreneurial in a
distinct diverges from one another with respect to the life experience and acquaintance
they earned. The goals of this report are to explain the entrepreneur and
entrepreneurship aspects in a comprehensive approach.

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Part 1:
LO1
P1, P2, M1, and D1
The key term entrepreneurship
Entrepreneurship is a dynamic interaction of entrepreneurial assertiveness,
entrepreneurial actions, and entrepreneurial objective that are very essential for
economic development. The entrepreneurial action is the initial activity in the medium or
high technology sector that is initiated by high-skilled entrepreneurs and launched for
the opportunity motivations without including the highly competitive environment. The
entrepreneurial objectives are concerned with the introduction of new products or
services or include new production stages to enter into new markets for increasing
employment and financing the business with capital (Bridge and O'Neill, 2017).
Entrepreneurship is the most innovative strategy that helps the businesses to
establish, handle, and lead employees towards the organizational goal. The
entrepreneurship makes changes for developing the organizational activities.
Entrepreneurs are involved with the entrepreneurial actions that contain several creative
ways to establish and ratify elements, the tactics in order to utilize the elements. After
that, the whole production or manufacturing stages are expanded.
An entrepreneur is independent to perform his operations while as an
entrepreneur totally depends on the entrepreneur. This statement concludes that
entrepreneur is associated with defining his business goal with his own planning and
concept where the entrepreneur is also called an employee who is indicted for taking
responsibilities revolution of products, services etc.
The procedure of the entrepreneurship is the most important and creative
approach towards different activities of the organization to systematize and to lead the
people with that particular company toward the objective. It is essential that the effectual
entrepreneurship have the positive impact and it will help to bring the optimistic change
and as well as improvement for the association (Kuratko, Morris, and Schindehutte,
2015). The total activities comprise different types of inventive ways of mounting and
ratifying the materials. In this process, the techniques in which the materials are
employed expand the whole process of the industrialized. It is also signified that
capability of a successful entrepreneur should have the capability in order to have the
agreement and organize. This comprises different kinds of risks which are involved in
the activities of the business.
Entrepreneurial
Ventures Types
Venture Attributes Roles Goals
Social
Entrepreneurship
Social
entrepreneurship is
mainly aimed at
improving society,
The role of social
entrepreneurship is to
synthesize products
and services for the
Through the
development of
effective and
efficient products

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people and the
environment
general improvement
and improvement of
the three areas
mentioned above, i.e.
people, society and
the environment.
and services that
influence and
improve the
current
conditions of the
environment, the
lives of people
and, through this
society in
general
Micro
Entrepreneurship
Founded and
managed on a small
scale, with minimal
investment. When it
comes to small
businesses or macro-
entrepreneurship, the
maximum number of
employees ranges
from 5 to 10, since the
initial annual income
ranges from £ 50,000
to £ 100,000.
Although the work
area for employees is
relatively small
compared to that of
macro-enterprising
companies, it is
important to
understand the fact
that these small
companies would
provide employees
with efficient terrain to
gain insight into the
industry and develop
efficiency. For this
reason, a better
understanding and
knowledge of the
activities, operations
and the role they have
to play would
strengthen the
entrepreneur in
efficient
entrepreneurship.
To produce
extreme benefit
within the united
industry.
Macro
Entrepreneurship
The macro enterprise
is largely managed
and managed by
founders of
companies and
owners of large
companies. For them,
their main vision is to
bring changes in the
sector in which they
were established
The entrepreneurs of
this type assume the
role of captain and,
through this, they can
better understand the
organization in which
they work, with all
their strengths and
weaknesses.
Therefore, when
designing appropriate
The goal is to
become a
market leader
and prosper in
obtaining the
maximum
market section.

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through more market
shares and higher
revenues, and
establish themselves
as leaders of the
same.
market and
operational strategies
to succeed and gain
market share in the
respective sector.
Business
Entrepreneurship
The main aim of the
business of the
organization is to
generate profit and
revenue.
Given that the main
objective of these
companies is to
generate profits and
income, the role they
acquire is also of a
competitive nature.
For this, they would
appreciate the
production of quality
products or services
or both to conquer the
customer segment.
As discussed in
the "roles"
section, the main
objective of the
commercial
enterprise is to
obtain the
maximum profits
and profits and,
through this,
become the
leading company
in the respective
sector and also
acquire the
maximum
market share.

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LO2
P3, P4, M2, and D2
Creativity in Entrepreneurship
Creativity is defined as the propensity to make or identify planning, substitutions
or opportunities that may be beneficial in resolving problems, collaborating with others,
and engaging others. It is the capability to turn up with creative and innovative concepts
to recognize different and innovative techniques of searching a problem and prospects
for the organization. It is a procedure of accumulating different thoughts by rearranging
the rudiments which are already recognized but mistakenly expected to be distinct to
each other. It has several primary prospects such as process, ideas, and
rearrangement. For being creative for entrepreneurship an individual must have the
capability to observe all problems and situations in a different manner from a normal
perspective (Mylonas, Kyrgidou, and Petridou, 2017). At a critical situation, individuals
must have the power to generate new creative possibilities and different alternatives or
to observe things uniquely. It can be connected to others fundamental thinking and
qualities such as easiness of uncertainty, flexibility and the amusement of things.
However, the creativity of entrepreneurship is the growth of ideas regarding company’s
services, merchandise, practices, and techniques that are new and potentially beneficial
to the business.
Innovation in Entrepreneurship
Innovation is the application of novel ideas at the group, individual, or managerial
level. It is a procedure of intercontinental transformation made to generate worth by
meeting the prospect and in search of benefit. Innovation is a practice of interpreting an
idea or creation into merchandises or services that create the importance for which
customers will recompense. An idea should be replicable at an efficient budget and
should fulfill a definite requirement. It encompasses the thoughtful application of
imagination, information, and creativity in developing better or different values from
possessions and take in entire procedures by which innovative ideas can be generated
and transformed into valuable merchandises.

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Figure 1: Innovation in Entrepreneurship
In entrepreneurship, innovation frequently consequences while the company
applies the ideas for the purpose of satisfying more requirements and expectations of
the customers. Innovation can be segregated as evolutionary innovations which are
brought about by several incremental signs of progress in processes or technology and
other is revolutionary innovations which are comparatively troublemaking and new
(Mehregany, 2018). The definition of innovation in entrepreneurship use usually with
small and medium-sized enterprises (SMEs) or start-ups of a business but is derivative
from the connection of the areas such as innovative entrepreneurship, young & high
growth business, and SMEs.
Main sources of making entrepreneurial and business ideas
The ideas of business are basically the thoughts while it applied it can lead the
business to generalize the income. The entrepreneurs should turn up with innovative
ideas from several other sources that must lead them to commence an ingenious
business (Piperopoulos, 2016). The main resources of business ideas are:
 Experiences: From the experience, a creative and innovative idea can be
generated. Experience in itself derives from persistent touch on a certain
aspect.
 Surveys: By doing market surveys excellent and creative ideas can be
generated which is recognizing or demonstrating that particular sector is
feasible or probably negated of merchandises.
 Training: With the help of individual training business ideas can be
developed whereas the trainees are equipped with necessary expertise
and knowledge from the institution of training.
 Market Gaps: Identifying a gap in the market can also help to generate
the business idea. In the case of entrepreneurship market gap is used to
mean some important area that is not occupied. Most of the time a

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particular zone in the market certainly remains empty for lack of
requirement of the customers regarding for services and merchandises.
Identifying the requirements of customers
A business idea can be formed by understanding and recognizing the demand of
customers in the marketplace. Listening from the customers also can help to generate
ideas of business. It is considered the most important sources of making entrepreneurial
and business ideas.
Businesses protect the rights of intellectual property
Every company has intellectual property which has the perspective to be
exceptionally valuable. Intellectual property is a kind of insubstantial strength for the
company that takes in the experts ideas, creations, inventions, and secrets that give
provide a highly competitive edge in the market. Intellectual property is protected by
patents, trademarks, trade secrets and copyrights. Small businesses must protect their
intellectual property.
A patent bequests poverty privileges on the innovation that approves to the
owner of the patent to omit others from the invention, sale or use of the invention.
Inventions agree to several companies to flourish because they improve better and
innovative services or merchandises that deliver competitive reimbursements in the
market. The trademark differentiates the service or the foundation of the merchandises
from the properties of the competition. To benefit from patent protection, it must be
distinguishing (Dutfield, 2017). A trade secret is a prescription, procedure, expedient or
further business statistics that companies keep private to deal with them a profitable
benefit over their competitors. Cost-benefit analysis and risk analysis can also help to
protect the assessment. The protection of intellectual property is frequently affluent and
time-consuming. To be suitable under copyright laws, work must be structured in a
touchable means of expression written on a sheet.
Type of small firms and their contribution to different factors
Business holders have to decide which types of business they desire to start
because the structures of different business have not the same rules regarding
individual accountability and taxes. New companies or small businesses are growing at
a noteworthy rate in the UK (Storey, 2016). More than 3000 new companies are
invented only in the United Kingdom in the period 2016. One of the foremost causes for
this occurrence is the economic and political circumstance of the nation that is favoring
the start-up and growth of these corporations. There is a great contribution of these
startup businesses to the budget of the country, which is why the legislative and political
factors are enormously supporting the country in its financial and economic situation.
There are several factors such as size, turnover, profits, growth, innovation,
sustainability and adaptability that contribute to this sturdy financial situation in the UK
for startup businesses and include the entire growth rate of the industry and turnover of
the revenue. In the year of 2015, an enormous amount of more or less £6 billion was
accounted for only as a turnover of micro-enterprises and, compared to the overall
turnover estimated in small, medium and large companies in the United Kingdom, this

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represented near about 14%. On the other hand, the rate of employment has increased
with the emergence of new companies during these time periods. It is assessed that
over 25 million persons are employed in small businesses across the UK, and this
includes both men and women. If the whole employees in the United Kingdom are to be
assessed, around 26% of the overall personnel is measured to be applied in small
startup businesses. It is also essential to note the information that the whole growth of
the small-scale business is increasing, compared to large businesses in the United
Kingdom and the major motive for this growth factor is the overview of creativity and
innovation in the planned and operating area in the small businesses (Wynarczyk et al.,
2016).
The significance of creativity and business innovation are decisive for its growth
and sustainability, so in this case, small businesses in the UK have advanced and
employed several creative and innovative procedures to gain market and business
leadership. In the UK industry sectors, there are basically three companies that have
played and continue to play a vital role in monetary growth. It is also imperative for the
entrepreneur to adapt to the condition, especially when it comes to the style of
leadership.
International differences put impact upon the business start-up
Small startup businesses in the United Kingdom play a vital role in the
sustainability and monetary growth of the nation. A decent number of people in the
United Kingdom are engaged or, in another hand, works in small businesses and these
small businesses act as a central generator of employment in the sector. With these
jobs, the cash flow within the budget becomes effective. The maximum number of the
small businesses that have succeeded and are developing are opening up momentous
prospects for the regional population and local population of the United Kingdom. With
these details, the data and information clarify that small startup businesses are
undoubtedly one of the major elements and the backbone of financial growth and
sustainability in the United Kingdom (Rauch, and Hulsink, 2015). Undoubtedly, small
startup businesses are creating new employment and new opportunities, which
consecutively add a greater financial growth in the nation. In addition to being an
important object for monetary enhancement and employment, even small startup
businesses in the United Kingdom play a vital role in the transformation of the entire
economic structure of the United Kingdom.

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Part 2:
LO3
P5
The concept of entrepreneurship is about exceeding the detention of the
management of the business. In order to think about the success in an
entrepreneurship, being an entrepreneur in the present scenario of the world market, it
is very important to remain updated about the changes happening daily. At the same
time, it is very essential to have new and innovative to bring uniqueness to your
business. It is all about bringing your collective ideas and pieces of knowledge and most
important the self-confidence (Bröckling, 2015). It needs guts to have the leadership
quality to take decisions at the crucial and the right moment. Therefore it is not only
about having skills, talents, and knowledge or even experience but rather it is about the
desire and the passion you seek to be a successful entrepreneur.
When it comes to the success of an entrepreneur in the current context, it must
overcome the traditional way of starting and run a business and reaching a new level
where innovation and business go hand in hand. It is also important for an entrepreneur
to develop ideas based on the changing business environment and implement these
business ideas in the form of a business strategy. Therefore, a simple skill or skill is not
sufficient in a contractor; it also requires passion and desire.
In a recent article, Richard Branson, co-founder of Virgin Groups, said that there
are many factors that influence an entrepreneur. One of the key declarations it has
made about risk is that entrepreneurs must always be willing to take risks. According to
him, the risk offers a great opportunity for the company and the personal growth of the
entrepreneur. Furthermore, it is also important for the entrepreneur to adapt to the
situation, especially regarding leadership styles.
From the perspective of leadership quality, the entrepreneurs take birth with two
quality characteristics. These are self-belief and backing the decisions taken by them.
The external behavior is also added to an individual. It helps to get the support which
insists the internal factors and aspects which is very important in an entrepreneurship.
This collective aspects of the skill of management and the skill of leadership help to get
the strong foundation for the startups and for the entrepreneurship as well. In order to
be a successful entrepreneur, these are some of the important issues which are needed
to be kept in mind. Development the innovative ideas and thoughts as well as changing
or updating those innovative thoughts and ideas according to the daily updates in the
market of global business. According to the book of Baum, the psychology of
entrepreneurs tells about the making of entrepreneurs depends on the factors
discussed (Baum et al., 2014).
P6
There are different aspects which include the elements of being a successful
entrepreneur are taking risk factors, fearless, applying new and innovative thinking and
ideas. These aspects are very important and seeking motivations from the life history of
famous entrepreneurs of the world. Many things can be related or can be associated

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with the life history and the journey of the famous entrepreneurs. The way they
struggled to build a strong empire of business and to run successfully their business is
very inspiring. Especially during the course of time when the initial steps are taken while
starting the startup company. Any famous or big brands you see are the results of
famous examples of entrepreneurship. Each and every individual in this world is born
and brought up with the unique ideas and thoughts which differs each other (Blatman &
Ralston, 2015). And in the world of the competitive market, it is important to compete
against your rival business brands with innovative thoughts and ideas. The main motto
should be to attract the consumers or the customers to get interested in your business.
Through the knowledge of proper leadership qualities and the skills of handling the
management well are the key things needed. There should an association with the
personality of an entrepreneur for seeking motivation on a day to day life. The nature of
not giving up despite multiple failures should be there within. No matter how many times
you fall, one should look at those failing phases as a learning process. And after
learning from those mistakes, if one is correcting those mistakes in the future then that
ambition of becoming a successful entrepreneur will become stronger. Most of the
successful entrepreneurs have gone through a period of remaining patient. The inner
strength and fighting with all the obstacles in the path of becoming a successful
entrepreneur should be there. If the path is easy, then the foundation will not be that
strong because the important aspect for the strong foundation is to fight against all the
obstacles and standing firmly at your feet is the basic thing to show the level of
patience, self-belief and backing your decision making power and ability is very
important. Seeking the inspiration not only from the life history of a successful
entrepreneur but also seeking the creativity and freedom from various aspects of life,
from every culture, genres, etc.
M3
The things mentioned or discussed in P5 and P6, it helps to create an exploration
of the concepts and the ideas generated from entrepreneurship and from the
entrepreneurs as well. One of the basic queries which have been discussed is about
making a successful entrepreneur and also discussing the factors along with each and
every aspects of struggle period to the period of glory. It also supports the motive
required to have a successful startup business as well as to run the business on a long
run with limitless growth. This thing can be done by remaining updated with day to day
changes and new updates in the world of the global market. The lead character also
plays an important role in setting up a successful business plant. The determination of
not giving up, taking calculative risks and remaining fearless are the vital things needed
to be kept in mind while leading any startup business. These things can come either
with nature by birth or by watching and experience numerous struggles while going
through the initial period of setting up the business plans. The other factors discussed in
P5 and P6 are having the innovative ideas and thoughts and implementing those ideas
and thoughts in a right way. These are some of the things which can elaborate the
characteristics of a successful entrepreneur. If these characteristics are obtained at the
very initial stage of building the business plant, then there will be the chance of
becoming world’s one of the most famous entrepreneur among the other great
entrepreneur in the world.

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D3
The entrepreneurial approach differs while taking important decisions and while
coming to the business as well. Such differences are usually because of the facts of the
traits of personality. These are actually while facing the tough times during the initial
struggle period and from the other experiences of life as well. The experience of life and
the role of education plays an important role along with the other factors discussed
above.

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LO4
P7 and D4
The factors that influence the decision to start a business
The methodology of every entrepreneur is not the same while it considers the
processes of business and decision-making. These transformations are basically due to
the personality behaviors they assimilated through life experiences and time. Education
and experience of life are the important substance in the establishment of a distinct
personality, and the same spread over a businessperson (Vahlne and Johanson, 2017).
Personalities such as self-management, self-motivation, and coordination are
imperative for an entrepreneur and originate from factors i.e. life experience and
education, as these are the factors that make the individual overcome challenges along
the way.
The risks and rewards of business start-up
The risk concept involves enormous opportunities and challenges for individuals
and is one of the profound personalities of the character of an effective entrepreneur. It
is also significant that these risk-seeking factors in an entrepreneur have established
over time with factors i.e. expertise and experience of life in which such expertise is
developed (Crick, Chaudhry and Crick, 2018). And so, for an entrepreneur who starts a
business, risk is a major factor that must be assumed in all its aspects, as the risk does
not mean taking a dazzling act of faith, but establishing the knowledge through the
calculation of the challenges faced in the past, makes the whole procedure efficient and
effective.
M4
The part of P7 broadly discovers entrepreneurship with the entrepreneurs’
concept. Every of the negative and positive attributes that a financier has is due to
preceding involvement and to the expertise they have accrued from that experience.
Since the idea of entrepreneurs has been acknowledged, it becomes perfect that the
collected experience in life has a more important role to play in the entrepreneurship
development. Once every single challenge will overcome, it gives the entrusted more
self-assurance to face the next. The ability to yield risks does not mean a bound of faith,
but a deliberate movement towards the prospects and potential challenges.
Conclusion
This report discovers the entrepreneurship and the entrepreneurs’ concept
extensively. It also analyzes the contribution of companies or businesses venture to the
growth of the nation and the region. On the other hand, this report also showed a
comprehensive study of the factors of entrepreneurs and entrepreneurship.

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