Unit 9 - Entrepreneurship & Small Business Management

ENTREPRENEURSHIP
AND SMALL
BUSINESS
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1 types of entrepreneurial ventures and their typology........................................................2
P2 Similarities and differences between entrepreneurial ventures.........................................4
TASK 2............................................................................................................................................5
P3 Interpretation of statistics for showing impact of micro and small business on the economy
................................................................................................................................................5
P4 Importance of small business and start-up for the growth of social economy..................6
Task 3...............................................................................................................................................7
P5 Characteristic, traits and skills of successful entrepreneurs..............................................7
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation.................9
Task 4.............................................................................................................................................10
P7 Background and experience of the entrepreneurs...........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurs are those individuals who develop, find and innovate, new ideas into practical
and feasible world. The main motive of innovation is to satisfy the demand of customers with
increasing the value in the products or services. In the present scenario, entrepreneurs works as
the backbone of a country through generating more revenue and offering more employment
opportunities to the local people of a country. Majority of the entrepreneurs start their business at
small or medium level which boost the economy of country due to which more development will
be seen in the nation. This reports highlights on different types of ventures and with their
typologies. Along with this similarities and differences between entrepreneurial ventures and
their interpretation with in the statistics and its impact on the micro and macro business are also
covered in this report. In the last, importance of small business and start-up for the social
economy and traits, characteristic, background of successful entrepreneurs will also be mention
in this report (Ramadani, 2013).
TASK 1
P1 types of entrepreneurial ventures and their typology
Entrepreneurs can be defined as those individual who operates a new business and offer as
well as deliver new products in order to earn more amount of money. On other side, entrepreneur
ventures refer to those business actions which are established by entrepreneurs in order to live
their comfortable with business profits. Moreover, entrepreneurial ventures are formed with their
own purpose. Some types of ventures are developed that is segmented on their service, size and
scope are mention as below:
Entrepreneurial activity
Entrepreneurial activity can be defined as those actions by which small business increase
their revenue through generating and implementing economic activities. Moreover, this activities
are related with the formulation of new and unique ideas that enhances the growth and
development of business. With the convert of new and unique ideas into reality it is easy for
management to provide better goods and services to the customers.
Types of ventures
Small business- The small business operates their business by investing huge amount of
money, capital, size and operations. So it is easy for the entrepreneur to operate regular business

operations and functions effectively. In the context of size and scope of small business is small
as the entrepreneurs are performing their work at small level. Moreover, small start-up are
established by sole proprietor or the partners with the purpose of earning profits and livelihood.
In small business maximum number of employee’s is 50 with the net worth of €2 million. Like
Orion Electrotech Ltd and Clarasys are example of small business firm.
Large business- This business ventures operates their business at a large level due to
which business are operations will be done in effective manner. Along with this the size and
number of employee’s are engaged in organisational operations at huge level in order to achieve
organisational goal in short intervals. Further, large organisation also perform their business at
multi-national level (Kelley, Singer and Herrington, 2012). So the entrepreneurs invest huge
amount of money to operate the business in smooth manner. Marks & Spencer, Asda and Tesco
are the example of large business which are operating their business at global level from several
years. In the context of employee’s there are more than 100 employees performs their work.
Social business- This business house are formed with the motive of providing benefits to
the society rather than the entrepreneur. Moreover, this firm start their business with the motive
of implementing new changes in the society. The scope of social business is too low because
business houses must need to bring changes at a small level. Focus of this business houses are
not to earn more profits but to adopt changes in the society to improve the living standard of
individuals.
Typologies of entrepreneurship
Entrepreneurs undertake various types of typologies that are associated with development
of business. Some typologies which help business to perform their work more effectively are
mention as follow:
Lifestyle typology- This types of enterprise are performing their work to improve the
living standard of local people in which the organisation is operating their business. These firms
provide opportunities to individuals due to which better results are gained by management
(Islam and et. al., 2011).
Growth firms- These companies are developed with the motive of earning huge amount
of profits as well as revenue. The entrepreneurs of such firm adopt changes as per the market
needs due to which it is easy for them to retain in the market for longer period. This ideas are

generated by the survey of market due to which small and large organisation offer their products
as per customer’s needs.
P2 Similarities and differences between entrepreneurial ventures
Similarity and difference with in the entrepreneurial venture is as follow:
Similarity
Basis Small business Social enterprise Large business
To meet the needs This are developed
with the motive of
satisfying needs of
local customers.
The motive of social
enterprise is to
support small
business by
fulfilling their needs
and demands.
It is mandatory for
large scale to fulfil the
needs and demands of
customers effectively.
So it is easy for them
to earn high profits.
Society fulfilment Small business
increases the
employment rates for
the local people. So the
living standard of
people will increases.
They provide the
services to local
people in order
provide them better
living standard.
Large scale recruit
employees at large
level due to which
more number of
employees are able to
fulfil their needs.
Differences
Basis Small business Social business Large business
Scale They operate their
business at small level
as the motive of them
is to establish
themselves in the
market.
Social business works
at a local level. With
the motive of
satisfying needs for
local people.
They manage their
business at multi-
national level. So it
requires large amount
of money.
Purpose The major purpose of
small business
entrepreneur is to earn
profits for better
Social entrepreneur
work with the aim of
improving standard of
local people. So the
Large business are
performing their work
with motive of
earning amount of

livelihood. society upliftment will
be increased.
money and to enhance
their business size.
TASK 2
P3 Interpretation of statistics for showing impact of micro and small business on the economy
There are many business organisation are performing its operations and functions at a
global level. Along with this all firms whether small, large and social contribute in the economy
of a country by developing infrastructure, investing in education and many more. Impacts of this
business are mention as follow:
Small- In the small business there are less than 50 employees perform their work due to
which it is for management to make effective decisions. Revenue earned by small firms is
£5million. Moreover, this firms impacts on the business houses at a low scale because they are
operating there business at low level (Hall and Wagner, 2012). Due to which they are not so
effective to contribute in a business.
Medium- Entrepreneurs who operate their business at medium level recruit more than 50
number of employee’s that leads organisation to achieve their goal and objective in minimum
time period. Whereas, the income of this business houses is between £5m to £22million which
helps them to operate the business with more efficiency.
Large- this firms are operating their business at a huge level and they recruit more than
250 employee’s due to which it is easy for them to earn more revenue. The main aim of large
business is to increase their business size so they adopt essential changes due to which it is easy
for them to retain in the market for longer period. Further, the international organisation are able
to earn more £25million per year.
Impact on the economy of a country due to SME
Local impact- Micro as well as small business is performing their work at small level but
they directly impact on the economy of a country. As they deliver products and services to the
local people for fulfilling their needs effectively. This business operate there functions by
determining the needs and wants of people. Moreover, with this analysis it is easy for
management to formulate their products effectively that enhances business practices and
increases the productivity of organisation.

Regional impact- SME of the business is also performing their work at regional level
because they provide business opportunity to local level (Goffee and Scase, 2015). It results
that it reduces the unemployment rate in a region. With such type of positive impact it is easy for
management of small business to improve the quality of their goods. Therefore, region of a
country and the organisation both are benefited due to which overall development will be seen in
the society. It is also useful for region as with high income they must improve their
infrastructure.
National impact- SME also impacts on the business at a national level because they are
performing their business operations through investing minimum amount of money. Innovation
and creativity of the business are the major tools due to which business performance will be
boosted and it enhances the profits of organisation by governing more revenue for the overall
benefits of organisation such as providing employment opportunities to people. As well as to
provide more than 45% of UK employees are earning their livelihood from SME’s.
P4 Importance of small business and start-up for the growth of social economy
According to the present scenario, SME are working as the backbone of a country that
together perform their work by increasing the revenue and employment opportunities for the
nation as well as individuals (Epifanova and et. al., 2015). It is essential for the country to
increase their revenue as well as living standard of the people. So better results are gained by the
government of UK, in the context of SME which are engaged in UK premises performing their
business with more efficiency because government provides them various benefits such as
subsidiaries, low tax policy etc. This results SME contributes better for the economic of country.
Due to which high benefits are achieved for longer period. Some importance of business in the
economy is mention as follow:
 Job creation- Small business and start-up requires enough workforces to perform their
work in the market. So all types of SME are performing a major role in offering the job
opportunities to the local people (Dees, 2017). Along with this, the skills as well as
capabilities of the individuals will also be improved. So it is easy for them to earn their
livelihood at any place. Further, the right skilled also leads management to improve its
work performance by contributing in new ideas for the management.
 Improving living standard of society- Start-up as well as small business both are
contributing equally for the development of a country. This result the profits for the

organisation are increasing with a rapid speed in all terms. Like with the employed
people the purchasing power will be increased. Therefore, the cash flow of the society
will also be increasing with the constants sale of purchasing goods and services.
Economic growth- Economic aspect of a country involves all the financial aspect of a country.
Like interest rate, inflation rate, tax and GDP etc. Similarly SME are invests huge amount of
money in the country in order to good amount of money. This governs it is mandatory for both
perspective to coordinate in the work. Due to which both firms are able to perform their work
effectively in the market (Carsrud and Brännback, 2011). As it is already discuss that UK
government is contributing different aspects for the improvement of SME. So after Brexit the
economic of country is not too much affected because of SME support in the economy of
country.
In the last, by the above points it is concluded that there are various task are performed by
management of SME which enhances the performance of organisation effectively. Like it
provides, new and innovation ideas which is used to improve the productivity of all individuals
and country.
Task 3
P5 Characteristic, traits and skills of successful entrepreneurs
Large number of characteristic, traits and skills are required by the management to perform
their work effectively. This defines that there are various task must be managed by entrepreneur
so it is easy for them to complete their work as per the needs of management. This characteristic,
trait and skill must be managed to generate new and innovative ideas that can assist the firm to
enhance their productivity and profitability. Two entrepreneurs which are selected for this report
is Elizabeth Gooch and Tom Mercer which are performing their business in UK. Like Tom
Mercer utilise MOMA food and EG Solution are mention as follow:
Characteristic
Passion- This is an important characteristic for the individual who leads to become an successful
entrepreneur. There are various goals must be managed by management due to which
businessman perform their work through overcoming from various perspective to manage its
work within time period (Bhachu, 2017). Elizabeth Gooch and Tom Mercer are selected for this
task due to which they are able to complete their work in minimum time period.

Hard work- It is one of the essential characteristic through which entrepreneurs are able
to perform their work in unfavourable conditions. In the present scenario, hard work and smart
work are the keys of success factors. With the implement of this character it is easy for Tom
Mercer and Elizabeth Gooch to take decision in proper manner. So due to this the adoption of
risky decision entrepreneurs are different from manager.
Skills
Creative thinking- Unique and new ideas are the tools which helps management to stay for
longer period in the market (Berglund, Johannisson and Schwartz, 2012). This skill are essential
for entrepreneur due to which new business ideas will be developed by an individual which leads
them to gain top position in industry. In context of the Elizabeth Gooch and Tom Mercer, they
face various problems in their initial stage of business but to the skill of creative ideas it is easy
for them to tackle such problems.
Leadership- Managers are those persons or individual who also take guidance from the
leaders to complete various work such as to motivate employee’s and many more. Moreover, this
skill is essential for the leaders because they start their business in dynamic environment. Tom
Mercer and Elizabeth Gooch both are effective leaders due to which it is easy for them to
generate trust among all of its stakeholders. So leadership quality generates difference between
entrepreneur and manager.
Traits
Discipline- This is important for an individual to lead their life in a disciplined manner.
As it leads the individual to complete their work in organised manner, along with this in context
of Tom Mercer and Elizabeth Gooch it is mandatory for them to perform all of their work in
disciplined in order to maintain healthy life-style. Further, this skill also helps individuals to
achieve their goals effectively without getting distract from other aspects.
Confidence- It is an essential trait that exists in the entrepreneurs or individual for taking better
decisions. This result the organisations are able to deal with risky factors in the organisation.
Tom Mercer and Elizabeth Gooch are performing all of its work with high confidence due to
which they are able to develop better image in the society. This results both organisation
achieved more success in short term period (Bennett, 2014).

P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation.
An entrepreneur has many skills, traits as well as characteristics that differentiate them
from other persons or managers. These aspects represent the motivation as well as mindset of all
entrepreneurs that directly impacts on the success factor of businessman. In this, OCEAN model
can be applied for reflecting the entrepreneurial mind set as well as motivation. This model
includes 5 aspects that are discussed below:
 Openness: It is the first and foremost essential trait of this model of personality
assessment. This is related with the emotions, imagination ideas as well as adventures
which reflects the curiosity and creativity of entrepreneurs in making appropriate
decisions for their operational activities. It is also used for learning several new things as
well as tackle all challenges and issues effectively (Barringer, 2015).
 Conscientiousness: This factor is associated with the reliability as well as flexibility as it
states that entrepreneurs should emphasized on the goals and objectives instead of
involving in the unproductivity events. This will help in attaining the aims and targets
effectively as well as efficiently.
 Extroversion: It is associated that an entrepreneur should stay talkative, social, energetic
as well as assertive to encourage the workers and other people as well. By this stage an
entrepreneur can also build and maintain better relationship with the employees that help
them in retaining the workforce. Agreeableness: This is associated with the entrepreneurs that requires to be trustworthy
as well as cooperative to better coordination with their workers and other persons. By this
aspect of OCEAN model entrepreneurs can sustain trust among staff members that will
lead to increase their relations. They can also take some suggestions and thoughts from
employees towards the betterment of their performance.
 Neuroticism: It is related to the frustration, anxiety, fear, jealousy as well as worry kind
of effects in which businessman negatively response to random circumstances. The
entrepreneurs should require to avoid or tolerate this kind of components to provide equal
treatment to their all workers. By avoiding neuroticism aspect of this model, a
businessman can able to maintain as well as facilitates the positive and healthy workplace
environment.

Task 4
P7 Background and experience of the entrepreneurs
Entrepreneurs start their business with the motive of earning profit through offering them
better products and services (Bakeman and Hanson, 2012). In the context of Tom Mercer and
Elizabeth Gooch their experience is mention as below:
Tom Mercer
Background- Tom Mercer completed his education from the University of Cambridge.
After that he gain experience as a management consultant from the Bain and company that
operates their business in London. From the initial stage Tom was interested to found new idea
which leads them to start a new business. At the time of work, Mercer identifies that there are
various option exists for lunch and dinner but the better quality breakfast is not available easily.
So he gets the idea for his business in the year 2006 by providing health drinks that is made of
oats and smoothies. Soon the business achieved success and engage more than 25 people to
manage business activity of Moma food.
Experience- Tom had the experience of working as an employee in the city of London.
So he very well aware about the struggle of individuals to get a healthy breakfast for each
morning, Most of the times Tom also reached their office late due to the issue of preparing
breakfast. Further, at initial stage of Moma foods he often cuts food in night and sale them to
customers by packing it in bottles. Tom also approach people on constant basis in order to
understand their need.
Elizabeth Gooch
Background- At the age of eighteen, Elizabeth engaged in the operations of HSBC and
after one year she started to manage the work of a consultancy firm. At that time Gooch
identifies various opportunities in the finance sector (Akehurst, Simarro and Mas‐Tur, 2012).
So soon she collected some amount of money from friends, relatives and family in order to start
their own organisation. They provides there business in the financial sector and training services
which attract more number of investor.
Experience- After Elizabeth started their business she faced various problems such as
lack of funds, not support from family and friends and many more. But however, she managed to
tackle all such problems for a period. And in last, she met with Rodney Baker who provides

various ideas regarding the business among which one is the implement of software which leads
business to achieve success and top position in the market.
CONCLUSION
From the above summarised report it is concluded that an entrepreneur are those person
who come up with new ideas and convert them into practical world. Along with this there are
different types of ventures like small, social and medium are associated with entrepreneurs and
belongs to various typologies of business. Along with this small business as well as start-up
contribute various positive factor in a country which are job opportunities, increase in GDP etc.
In the last, skills and traits of entrepreneur are discuss which show the difference between a
manager and entrepreneur. Further, two successful entrepreneur along with their background and
experience are also covered in this report.

REFERENCES
Books and Journals
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report. Global Entrepreneurship Research Association, London Business School.
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and Management. 6(3).pp.289.
Hall, J. and Wagner, M., 2012. The challenges and opportunities of sustainable development for
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Goffee, R. and Scase, R., 2015. The Real World of the Small Business Owner (Routledge
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Bennett, R. J.,2014. Entrepreneurship, small business and public policy: Evolution and
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Barringer, B. R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
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Bakeman, M. M. and Hanson, L., 2012. Bringing social media to small business: A role for
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Online
The Role of Start-ups and Small Businesses in Today’s Economy. 2018. [Online]. Available
through:<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>.