Entrepreneurship and Small Business Management

This document discusses the types of entrepreneurial ventures and their relation with typology of entrepreneurship. It also describes the similarities and differences between different entrepreneurial ventures. The document further explores the impact of small, medium, and large businesses on the economy and highlights the importance of small business and start-ups in relation to the growth of the economy. Additionally, it discusses the characteristics, traits, and skills of entrepreneurs.

Entrepreneurship and
Small Business
Management

Table of Contents
INTERODUCTION.........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Types of entrepreneurial venture and its relation with typology of entrepreneurship...........3
P2 Describing the similarities and differences of entrepreneurial venture.................................4
TASK 2............................................................................................................................................6
P3 Understanding the Impact of small, medium and large businesses on the economy.............6
P4 Importance of Small business and Start-up's in relation with the growth of economy..........8
TASK 3............................................................................................................................................9
P5 Characteristic, traits and skills of entrepreneurs....................................................................9
P6 Reflection of different personalities on entrepreneurial motivation and mindset................10
TASK 4..........................................................................................................................................11
P7 Using examples, background and experience can foster or block success for
entrepreneurship........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTERODUCTION
Entrepreneurship is an ability, capacity and willingness of a person to create, organize
and manage a business venture. All the risk associated with the entity will be borne by the person
doing business. The special characteristic of an entrepreneurship is that the person starts the
business has an innovative ideas and develop it into a business opportunity. Small businesses
management is a process of managing which is used by entrepreneurs to pull off and run the
entity properly, generating effective results(Cole, 2018). Owners of entities use their skills of
management in running their business, take all risks and perform activities to mitigate those risks
and earn profits. In first part of this report, various aspects of entrepreneurs are discussed,
differences and similarities of different entrepreneurs are seen. Then a light is drawn on the
concept of innovation and how it is used by small businesses enterprises for performing their
duties for their firm. In second section, a through discussion is made on the mindset of
entrepreneurs, their growth opportunities and their plan of actions which proves to be helpful for
their business in present and for future. Every entrepreneur varies from each other, holds unique
personalities and traits of doing business along with surviving in market.
TASK 1
P1 Types of entrepreneurial venture and its relation with typology of entrepreneurship
Entrepreneurship refers to the process of developing an entirely new business unit,
initially aiming towards earning enough profits to survive in market. Entrepreneurship is a
business activity which is a one man show, a person works on the ideas and make an effective
business plan and bear all risk associated. In other words, a firm is called an entrepreneurship
when it is run by an individual and all operations are performed single handedly(Collins and et.
al., 2017).
Types of entrepreneurial venture
1. Small business entrepreneurship are those business ventures who's sole aim to survive
and earn that much profits which are enough for supporting their living and families.
These types of firms are mostly funded by the owner and their families or friends.
2. Large business entrepreneurship are the exact opposite of small entrepreneurship,
these organisations enter into the market with the motive of surviving and earning huge

profits. Large companies require huge amount of money to develop their operations and
therefore, they are funded by either taking loans from bank or raise funds from public.
3. Social entrepreneurship's are those business entity which are established and producing
goods for resolving the problems and satisfying social needs. Their aim is to make the
world a better place to live.
4. Scalable start-up entrepreneurship are different from small businesses, they enter the
market with assumption that their idea is unique and will bring change in society and
thinking of people. They get funds from venture capitalists according to their business
plans(Julien, 2018).
Typology of entrepreneurship
1. Lifestyle Entrepreneur is an individual that develops a business with the main aim of
altering and improving the lifestyle of public or their customers along with secondary
objective of earning profits. For example, consultancy or advisory services provided by
professionals for better functioning of other businesses. These advisory firms can be
considered as social entrepreneurship as their aim is to provide services by which
operations of business can be made better and then earn profits in terms of fee.
2. Male Entrepreneur are those business entities which are managed, controlled and
owned by men. Their objective is to earn profits and survive in market like the other
entrepreneurs and business owners. For instance, male entrepreneurs can be linked with
any entrepreneurial style either large or small, social or scalable.
3. Female Entrepreneur refers to those enterprises which are owned, managed and
controlled by women. In women enterprises at least 51 percent share of capital is brought
in by the female owner and more then 51 percent of their staff is of females. For example,
this type of entrepreneurial style can be seen initially in small businesses and then move
forward gradually towards larger perspective. Success of business and its survival with
utmost expertise will lead the entrepreneur to larger world and huge business
opportunities(Ateljevic and Page, 2017).
P2 Describing the similarities and differences of entrepreneurial venture
Various differences and similarities exist in unique entrepreneurial ventures which are
discussed and elaborated below:
Difference between Small and Large scale entrepreneurship:

Basis Small entrepreneurship Large entrepreneurship
Planning Small business owners make plans and
strategies to survive in market for
shorter period. Basically they think
about the present and make action plans
accordingly to survive in current
market(Saleem, 2017).
On the contrary, large entrepreneurship
plans to stay in market for longer
duration and adopt futuristic approach.
They set their objective and goals for
future.
Funds Money is the most important resource
for all types of businesses. In case of
small entity funds are arranged by the
owners themselves, by taking help of
their families or friends.
Large enterprises enter into market with
huge operations and ideas, therefore
their money requirements is also high.
Funds for large entrepreneurship is
raised from different funding sources
present in marketplace like banks or
venture capitalists.
Difference between Social and Scalable start-up's entrepreneurship:
Basis Social entrepreneurship Scalable start-up's entrepreneurship
Vision Entrepreneurs vision behind starting a
business is to resolve social problems
and satisfy social needs of public. They
aim to change the world in better
version. Like NGOs, they conduct
various kind of social services for
people and make their lives better.
Vision of owner behind their start-up's
is that their idea and business plan will
bring changes in lives of people but
with motive of earning profits(Ibidunni,
Peter and Ogbari, 2017). It works on the
innovative and new ideas people
develop and provide an entirely fresh
goods or services. For example, E-
commerce, a new way of conducting
operations and reaching to public.
Profits Social entrepreneurship can be both
profit making and non-profit making.
Profits are the ultimate goals of scalable
start-up's entrepreneurship but they are

They work for social causes and
benefiting the society.
secondary in nature. Their primary
objective is to provide innovative goods
to people and then on behalf of that
innovation earn money.
Similarities of Small and Large entrepreneurship:
 Ease in performing tasks- Both the business entities are owned by an individual, they
are the sole decision makers and risk barer. Plan of actions are made by them with their
ease, comfort and skills which makes it easy for them to implement those strategies and
earn profits according to them(Mugler, 2017).
 Aims- Small and large businesses both enter into marketplace with similar objective of
surviving and growing. The difference is the time frame they chose otherwise, they hold
the same objective of surviving and earning enough profits.
Similarities of Social and Scalable start-up's entrepreneurship:
 Enhance living standards- Both scalable and social entrepreneurship's works for same
thing and that is enhancing the lives and lifestyles of people. One do it with motive of
changing the world with innovative idea and then earning profits, another do it for social
cause with aim of giving better lives to public.
 Growth of economy- With the operations of both the enterprises they help in growth of
economy, one will do it by evolving mindset of population with their unique ideas. On
the other side social entrepreneurship will perform roles for enhancement of lives of
public and providing required resources to them.
TASK 2
P3 Understanding the Impact of small, medium and large businesses on the economy
There are several kind of entities present in marketplace which influence and impact the
economy in their unique plus special ways. Those businesses are bifurcated by their size named
as Small, Medium and Large(Kuckertz and Prochotta, 2018). All these are having their specific
features, roles and importance in economy.
Micro business are those companies which has annual sales and value of financial asset
less then $250,000. These entities has very less employees like around five or less including the

owner of the firm. All micro business are technically same as small business just the amount of
revenue collected are bit higher by small business.
Small business are those enterprise which are independently owned by single individual,
limited in size and its revenue entirely depends on the industry in which it is operated. These
small entities has huge impacts on economy and its stability, if they do not exist it will affect the
society and the economy(Amato and et. al., 2017). Some of those impacts are small businesses
hold great importance in rural areas, they create job opportunities for local population. In big
cities, its benefit the customers by providing specialize inventory or goods and avail personalized
experiences to consumers.
Medium business are also similar of small business but have some special characteristics
which differentiate between them. Their size depends on the number of employees medium
business entrepreneurship employ and that is approximately 250 employees. They can also be
separated on the basis of financial assets they hold while performing business operations.
Large business enterprise are considered as large when they have at least 5000
personnels working for them and performing their duties according to their expertise. One more
factor which makes an enterprise large is their turnover, in this case turnover should be greater
than 1.5 million euros. Large business owner should have their operations spread amongst
various different locations in domestic and international markets.
Impacts of all the business entrepreneurship's on UK economy are shown by some data and
statistical graphs:
Illu
stration 1: Business statistics

(Source: Business statistics, 2018)
Impacts of all types of businesses are shown in the above graph on the basis of employment,
turnover and business. Its significant from the diagram that micro businesses has shown huge
raise as they increase by 95%, on the other hand small, medium and large businesses in total just
increased by 5%. All these businesses also impacted the employment and turnover by showing
effective increment. Large entities raised employment by 40%, then micro firm by 33%, small
and medium companies by 15%.
P4 Importance of Small business and Start-up's in relation with the growth of economy
Enterprises hold great importance on economy and its growth in which they are
performing their business activities. Small businesses are the backbone of every economy as it
help it in expanding and attaining higher position in amongst other world economies(Mazzarol,
W. and Reboud, 2017). Therefore, some of the importance of small business and start-up's are
highlighted below:
 Create employment opportunities- Avery important role small businesses and start-up's
play in economy and its growth is it creates job for the local population. These entities
invite new ideas, talents and skills for betterment of their operations along with providing
them jobs. New jobs will increase the money flow in economy which increases the
purchasing power of people. They start recognizing their needs and get motivated to
spend money in order to fulfil their wants.
 Enhancement in living standards- When money start circulating in economy and
purchasing power is increased, now people will move from fulfilling their basic needs to
their luxury desires. These wants occurs when basic needs are satisfied, individuals move
towards wanting something extra for living better lives. Therefore, enhancement in
peoples lives and their way of living will come after growth comes in economy and that
is possible due to start-up's and small businesses.
 Growing into large corporations- Many start-up's fails but some of them survive which
are developed according to the needs of people. These start-up's and small businesses are
initially starts with very low budget and funds but gradually they turn into larger
organisations, For example Nike. This transformation from small to large comes
gradually with the passage of time and businesses has to face lot so difficulties. But with
this passage of time these entities benefits themselves and to the economy too. They

concentrate their operations by making their position in market and attracting huge
customer base which will ultimately help the economy. These will result in growth of
economy in which they are doing business and help it to be recognized by other
economies existing in the world.
 Provides experience- Many small businesses and start-up's fails in the very beginning
due to several reasons(Dana, 2018). More important thing here, they works as learning
elements for other in economy. People from the mistakes they have done will learn,
improve and rebuild themselves which is beneficial for them in long run. This way lots of
money of economy do not gets wasted on failures but invested on profitable projects.
Therefore, giving another very important factor for economy to expand and grow.
TASK 3
P5 Characteristic, traits and skills of entrepreneurs
Characteristic:
Elizabeth Gooch Tom Mercer
She was open to risk taking situation and no
fear in taking risk. She was open to new ideas
and risks evaluate them and implement it in her
business operations and activities.
Tom use to take risks but after evaluating it
and analysing things properly. He had this
characteristic of understanding, analysing and
then implementing or attaining any possibility
for his company.
Elizabeth was also very prompt decision
maker, she get an idea consider it and take
decisions instantly. This characteristic helped
her in doing business and grabbing good
opportunities.
Another characteristic Tom had was time
management, he use to get up early for his stall
and manage all his work for the the whole day.
He use to do all the preparations for his healthy
drink he was offering to people early morning
while going to work.
Traits:
Elizabeth Gooch Tom Mercer
A very special and important trait Elizabeth Tom was very passionate and motivated from

had is of futuristic vision. She use to make
plans and take business decisions for future.
Those plans also worked for her and paid good
results in manner of success(Ramadani and et.
al., 2017).
the very beginning for his business. This is a
trait every entrepreneur and business person
should have if they want to have a successful
business. His passion for his idea made him
wait for the perfect timing to introduce his
business and made him perform such effective
and attractive product.
She was very flexible and adaptive in nature,
she use to grab and adjust herself and business
operations according to new changing
environment. This trait helped her in attaining
success and taking business to new heights.
Another, trait he had was his motivation level,
which is compulsory. After, recession and its
effects on the business tom didn't stopped. He
found new ideas and ways to conduct his
business activities. Shifted to retail stores when
he realized that people won't be spending same
amount of money on his product they use. Due
to decrease in their purchasing power.
Skills:
Elizabeth Gooch Tom Mercer
Strong decisions are the backbone of
businesses, entrepreneurs have think
strategically and promptly for gaining success.
Skill Tom had is innovative idea and power of
moving in same directions. He innovated a
new product which is healthy and works as
breakfast, saving lot of time of
people(Laudano, Marzi and Caputo, 2018).
Elizabeth had huge confidence in herself and
her business idea which lead her path towards
earning huge profits and growth.
Leadership quality of Tom is a very rare skill
which is founded in individuals and that what
made him successful and powerful.
P6 Reflection of different personalities on entrepreneurial motivation and mindset
Entrepreneurs have different personalities by which they work in various ways and adopt
several methods of doing business. But these personality traits influence their mindset and

motivation of performing operations of their business. These personalities can be elaborated with
OCEAN model of personality which is as follows:
 Openness- This trait has characteristic of imagination and insight, people who are high in
this trait are creative and adventurous. They keen to learn new things taking place in the
world and to gain new experience. They create interest in various types of things which
are going on around them. Both the entrepreneurs Elizabeth Gooch and Tom Mercer had
this trait they were open to new ideas and to try new methods in their business.
 Conscientiousness- Feature this personality trait includes high level of thoughtfulness
and goal oriented behaviour. People spend time in preparing and planning, they keep
their focus on minute details and then move forward in their business. Tom Mercer had
this trait, he first planned then analysed, work on small details and then introduced his
company and products to the target market.
 Extraversion- People with this personality trait hold characteristic like outspoken, they
gain their energy from socializing and enjoy meeting new people. These kind of
entrepreneurs has huge social circle, enjoy attending business related social events and
grab good ideas for their business. Elizabeth and Tom both were open minded and invite
new ideas but were not extraversion.
 Agreeableness- This dimension of personalities has features like trust, kindness and
affection. Entrepreneurs who hold high position in this trait cares a lot for people and
their feelings, assist other with their work and take advice too. Elizabeth had this trait in
her, she took business advice from others and politely their proposal after evaluating it
and understanding that it is helpful for her firm(Kuratko and Morris, 2018).
 Neuroticism- This personality dimension holds negative characteristic, entrepreneurs
who has this kind of personality are always sad, emotionally weak, has unstable mindset
and very moody in nature. They take lot of stress for their entity and operations, start
feeling anxious in very small situations and struggles to bounce back in their normal
mind frame. Elizabeth and Tom both holds just opposite personalities, they both use to
take risks but with very relaxed mind and deals with stress effectively.

TASK 4
P7 Using examples, background and experience can foster or block success for entrepreneurship
Elizabeth Gooch is founder and CEO of EG solutions which helps clients to improve
performance and efficiency of operations. Her father died and mother got married to another man
and at this time she was actress in one of theatre company. She published her first book in 1788
named An Appeal to the Public and many after that. This success helped her in entrepreneur
development as well. She joined HSBC bank at the age of 18 and soon left it and started to work
for consultancy which helps large organisation to manage it's workforce effectively. This helped
her to have experience about this sector and started her own company at the age of 26. She also
launched software known as Operational Intelligence which collect real – time information about
production process ensuring department to manage it effectively(De Bruin and Mataira, 2018). In
2005, she changes the name of company to EG solutions and developed more focussed and
effective business model. All this experience has helped her to foster her entrepreneurship skills
and takes her business to the level of growth and development.
Tom Mercer is founder of MOMA foods who makes and sells oats and breakfast in train,
buses, trams, etc. in the starting. He is graduate from Cambridge University and started to work
as management consultant with Bain and Co. in London. He started with mixing oats, yoghurt
and fruits for making breakfast and his business start to grow in terms of revenue. He then tried
different recipes and mixture for breakfasts and recording feedback of consumers. By 2008
company ha nine stalls and some offices and shops. But this time economy was in recession and
spending expenditure of buyers was going down. They overcome this by redesigning their
processes, marketing campaigns and start to sells coffee in country. By 2009 company has more
employees and 10 stalls. All this have helped him to bring success in the time of recession and
bring success to organisation as well.
CONCLUSION
It can be concluded from above report that entrepreneurship is trait which an individual
start their own business and contribute in economic development of the country. In this report,
discussion about different types of entrepreneurial businesses and their relations with typologies
of entrepreneurship. This will identify similarities and differences between different types of
ventures. There will be use of different types of data and information to interpret micro and small

business with their impacts and importance for growth of economy. There are distinguish traits,
skills and characteristics that differentiate entrepreneurs from other business managers. There are
different entrepreneurial personality which reflects their mindset and motivational level. At last it
includes factors like background, experience and education which foster and hinders that success
of entrepreneurs.

REFERENCES
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blackwell handbook of entrepreneurship, pp.150-175.
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