Entrepreneurship and Small Business Management: Types, Impact, and Skills

This assignment discusses the different types of entrepreneurial ventures, including social entrepreneurship, scalable start-ups, and large companies. It also explores the impact of small businesses on the economy and the skills and traits of successful entrepreneurs.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
LO 1.................................................................................................................................................1
P1) Different types of entrepreneurial venture and typology.................................................1
P2) Explore the similarities and differences between entrepreneurial ventures.....................3
LO 2.................................................................................................................................................5
P3) Statistical data to illustrate the impact of small business on economy............................5
P4) Importance of small business in growth of social economy............................................7
PART 2............................................................................................................................................7
LO 3.................................................................................................................................................7
P5) Characteristics, traits and skills of successful entrepreneurs ..........................................7
P6) Entrepreneurial motivation and mindset........................................................................10
TASK 4 ........................................................................................................................................11
P7) Impact of background and experience on entrepreneurship..........................................11
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Entrepreneurship is basically a process which reflects the capacity and willingness of an
individual to develop, design, launch, organize and successfully managing a new a business
venture. Entrepreneur is the person who create a theses business entrepreneurship and bear all
the risk involved in launching and managing a start up and also they are the one who enjoy the
maximum part of profit (Adeyeye, Ikupolati and Ndibe, 2018). The business environment in
which these entrepreneurial venture operates is highly dynamic and full of risk and adverse
conditions thus, to reduce the scope of the risk and to understand a business environment more
effectively entrepreneur starts to like their business operation as a small scale venture. This
assignment is based on a survey conducted on entrepreneurship and small business management
and includes different types of entrepreneurial venture along with various typology. Apart from
this importance of small and medium sized organisations on economy is also included. At
finally, discussion about various skills and traits of entrepreneur along with there background
and experience which hinder or foster a business venture is also provided.
PART 1
LO 1
P1) Different types of entrepreneurial venture and typology
Entrepreneurship is the endeavour of creating, owing and commercializing an idea,
technology, product or any services along with bearing and enjoying all risks and rewards
associated with the enterprise or business venture. In business environment various types of
entrepreneurial venture are there which offer many opportunity for individual (Brush and et. al.,
2019). These organisations are broadly classified into two types of economic sector which are
explained below:
Corporate sector- This sector is commonly known as private sector and organisations in
this sector of economy are developed, launch and control by some private individual with the
main aim of increasing profit and expansion. For e.g.: Tesco and Burberry are two corporate
sector enterprise of UK.
Public sector- This sector are fully or partially controlled by government and legal
authorities and central, state or local government bodies are responsible for developing,
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managing and successful running theses organisation. For eg: BBC And NHS (national health
service) are the two public sector organisation of UK.
Many different types of organisations and entrepreneurial venture are found in private
and public sector of economy which are described below:
Social Entrepreneurship – These are the entrepreneurial venture which consists of
various NGO, trust and other organisations who works for welfare of society and not for earning
profits. There financial needs are meet by donation and charity and there main aim is to provide
basic product and services to vulnerable and other deprived group of society. Save the children
and Vinspired are two social entrepreneurship of UK (Dana, 2018).
Scalable Start-up Entrepreneurship- These entrepreneurship takes an innovative idea
and searches for new scalable and repeatable business model that can be turn into a high growth
and profitable company. The main of these organisation is on bringing change in world through
innovation and creativity. Hassle.com and Cocoon are the examples of Scalable Start-up
Entrepreneurship of UK.
Global and large company Entrepreneurship- These organisations mainly operates
at large scale and require huge amount of assets and resources for their development and
management. Global organisation are the one which are having their business operations in more
than one nations and provide their services and products at intentional level thus, huge workforce
and productivity is required (Dominik and Banerji, 2019). For eg: Aston martin and Compass
group are the example of large and global company headquartered in UK and having their
business operation many countries of world.
Small and local Business Entrepreneurship- These are the enterprises which
provides their product or services within a local or domestic area thus, having a limited
geographical reach. The resources and finance required for creation and management of small
business is quite low and can also be beard by economically weaker section thus, provide better
job opportunity. EG solution and MOMA firm can be taken as examples of small and local
business operating in UK.
Typology of entrepreneurship
A group of individuals which are put together on the basis of some common
catachrestic or feature is known as typology. The various types of typology of entrepreneurship
is provided below:
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Lifestyle entrepreneur- In this typology those entrepreneurs are included whose main
aim behind creation or development of a business venture is making alteration in their personal
lifestyle and creating better standard of living and not on only making profits (Ferreira,
Fernandes and Kraus, 2019). These kind of entrepreneurs are more passionate for their work and
their main focus is on following their passion therefore they are more creative and enjoy taking
higher risk.
Serial entrepreneur – The common trait if theses entrepreneur is that they deals in and
creates many companies from which some are sold out or failed when it reach at their crushing
point thus, provide a opportunity to come up with a new ides or business venture. These
entrepreneurs are having a great desire to create and grab all possible opportunity thus, tends on
coming up with new ideas.
Owner manger- The main uprose of these individual behind establishment and
management of an organisation is fostering and achieving their own personal goal. This
organisation or enterprise created by them is the primary source of income for an owner manger
thus, they spend their maximum time and resources for success and effective management of
their business venture.
P2) Explore the similarities and differences between entrepreneurial ventures
The main similarities between entrepreneurial venture (social, Scalable, large, global,
small, local) are as follows:
 All possible efforts are made by these entrepreneurial venture to maintain effective
coordination with in an enterprises so that objectives can be achieved on time (Gartner,
2019).
 All these organisations are focused on providing best services and products to its
customers, clients and member so that better satisfaction and fulfilment of desires can be
achieved.
 Maintenance of healthy and motivated atmosphere at workpiece through building better
relation with employees and customers is also a common feature of all these
entrepreneurial venture.
Key Difference between entrepreneurial ventures
Basis Small or local Business Large company Entrepreneurship
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Entrepreneurship
Operation level These organisations mainly operates
at small or local level thus does not
have any specialised department or
large workforce as only a limited
number of task and activities are
conducted in domestic area.
Large company mainly operates at
huge scale thus, require a big
workforce and proper division of
work into various departments to
maintain the efficiency.
Objective The main purposes or objective of
creation of a small or local business
is to earn money for survival and
meeting basic needs and amenities.
The aim at increasing standard of
living of related people.
The main objective and focus of
large organisation is on
maximisation of profit through
attracting more customers (Julien,
2018).
Geographical area
served
These organisations mainly operates
at local or domestic level with a
limited geographical expansion in
near by areas.
They mainly operates their business
operation at international or global
level thus, cover a wider
geographical area.
Basis Scalable Start-up
Entrepreneurship
Social Entrepreneurship
Objective To coming up with new
innovation and development of
better technology is the main
objective of an Scalable start-up
entrepreneurship (Kuratko and
Morris, 2018).
The main purpose of these
organisations is bringing equality
and developing a better society
through providing services to
vulnerable and economically
weaker section.
Nature These organisation are mainly
hold by private individuals and
aim at making a world a better
These organisations not operates
with a motive of gaining profit
instead work for welfare of
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place through continuous
innovation and creativity.
society.
Financial need Innovation and creativity require
huge amount of knowledge and
finance for its effective
implementation.
The financials needs of these
social institution, NGO and trust
are meet through donation and
charity made by there members
and clients.
LO 2
P3) Statistical data to illustrate the impact of small business on economy
Small business plays a crucial role development and growth of economy of UK and this
contribution is increasing every year. According to research from the Department for Business,
Energy & Industrial Strategy, at the beginning of 2018 a massive 99.9% of the 5.7 million
businesses in the UK are small or medium-size businesses (SMEs). This importance of small
business in economy of UK can be interpreted through following statistical data:
Illustration 1: Private Sector Business In the UK by Business Size / No Of Employees,2019
(Source: Private Sector Business In the UK by Business Size / No Of Employees,2019)
On the basis of above graph it can be clearly depecits that small and medium sized
business plays an important role in UK in terms both in terms of employment and turnover.
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Small and medium sized businesses had a combined turnover of £2.0 trillion in 2018. It amounts
to a whopping 52% of the private sector’s overall turnover (UK SME Data, Stats & Charts,
2019). From the above graph it can be interpreted that 99.9% of all UK businesses are classed as
Small and micro sized enterprises (0-249 employees), 0.6% are medium-sized businesses (50-
259 employees), and 4% are small businesses with 10-49 employees and more than 95% are
micro-businesses (0-9 employees).There are more companies without any employees in the U.K.
than the total number of business (82% compared to 25% of companies).
Illustration 2: Growth in UK businesses in the private sector by number of employees (2000-2018), 2019
(Source: Growth in UK businesses in the private sector by number of employees (2000-2018),
2019)
From the above line graph it can be analysed that role and contribution of small and
micro business is continuous increasing. In 2016, the combined annual turnover of SMEs in the
UK was £1.9 trillion, totalling 51% of all private sector turnover for the year. The average SME
with a turnover of less than £25M in the UK makes £8,000 profit per year as of 2016 according
to a survey of 18,000 SME’s of this size. Medium-size businesses with 50-249 employees
generate the most profit by far at almost £200,000 per year. Thus from all this statistical data it
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cab be concluded that Small and micro business are like a backbone of economy of UK
providing maximum job opportunity and also contributing in enhancing productivity and
turnover of economy of UK (Small business statistics, 2019).
P4) Importance of small business in growth of social economy
Small business are having a crucial role in growth and development of an economy as it a
business venture that focuses on local and domestic market and thus creates job and better
standard of living for them. The investment require for a small business is generally small and
can be beard by any individual thus, provides better job opportunity to economically weaker part
and section of society (Laukkanen and Tornikoski, 2018). Main focus of large organisation is on
their own expansion and profit maximization and they mainly tends to operate at international
level thus, their job and other advantages are not availed by local people and weaker section of
economy. Medium sized organisation are also more interested in their expansion in big and
metropolitan city so that richer section of society can be attracted for their products thus, again
left the weaker part of society. Because of all theses circumstances role of small business is
increasing as it provide equal job opportunity to weaker section of society and gives them a
chance to show their creativity and earn better revenue.
The role of Small business are important as they are business venture which solve and
reduce the problem of unemployment in economy through creating lager job opportunity and
making individuals self sufficiency through their start up. Small business has increased the phase
of economic growth through increasing the productivity and GDP rate of a nation (McMullen,
2019). Beside this small business also protects local artisans and worker and stop their migration
in other nation. Small business has also reduced poverty and starvation through providing a
better source of income in weaker section of economy. Thus, small business has improved
standard of living of local people.
PART 2
LO 3
P5) Characteristics, traits and skills of successful entrepreneurs
An successful entrepreneur is an individual who has the capability to develop and
effectively mange a business organisations. This capability is acquired through certain traits,
skills and characteristics of entrepreneur which also makes them different and better than manger
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(Pages, 2019). To understand the importance and role of theses skills, characteristics and traits a
description about 3 successful entrepreneurs are provided below:
Philip green
He is a well known British billionaire businessman and chairman of Arcadia Group
which is a multinationals or global retail company.
Traits
Versatility- This trait of Philip green makes provides him multidimensional capability
which makes him able to perform various tasks and activities at a particular time thus, increase
his efficiency. Mangers are not much versatile in their work thus, can handle only a single job at
one time.
Decisiveness- This trait provides a capability of properly understanding a given situation
which is necessary for an successful entrepreneur like Philip green to take effective decisions for
success and growth of business as per the prevailing situation. This trait of decisiveness is not
found in managers thus, not able to make decisions to cope up with adverse situation.
Characteristics
Confidence- This characteristic of Philip green provides him self belief and courage to
take stiff and firm decisions to cope up with and handle any negative or adverse situation.
Mangers does not have that much amount of self belief and confidence thus, their decisions are
not so effective (Pelz, 2019).
Energetic- For a successful entrepreneur it is necessary that he/she remain enthusiastic
and dedicated towards there work. This characteristic of Philip green keeps him full of energy
and provides a positive felling which keeps him interested and motivated towards their work.
Mangers are quite dull thus, lack interest and dedication for their work.
Skills
Resilience- This skill of Philip green makes him able to positively handle the rejection
and failure. He believes in learning from failure and take it as opportunity for betterment in
future. Mangers are not so good at handling rejection and get discouraged with failure
(Randolph, Li and Daspit, 2019).
Time management- It is a key of success for any entrepreneur as it lead to achievement
of targets on time which is necessary for growth of any business. Philip green is having adequate
timer management skills which makes him capable to properly and timely schedule his work.
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Mangers finds it difficult to mange their work on time thus, some of their objectives remain
unachieved.
Elizabeth Gooch
She is the founder and CEO of EG solution which is a small company dealing in
operations management software that helps their clients to create improvements in operational
performance and efficiency.
Characteristics
High Perseverance- This characteristic of Elizabeth Gooch keeps her motivated towards
her goals and targets despite of various hurdles and difficulties. Mangers are not so good in
handling obstacles and adverse situation and left their target in mid (Turner and Gianiodis,
2018).
Risk taker- This characteristics made Elizabeth Gooch capable of grabbing foresighted
opportunity involving higher risk of failure without any internal fear which is necessary to make
a business successful. Mangers are more conservative thus, likes to avoid risk.
Traits
Passionate- Elizabeth Gooch is highly passionate and dedicated towards her work which
makes her more efficiency. Mangers are not much passionate thus there efficiency tends to
reduce (Singh and Gaur, 2018).
Creativity- This the trait that has made Elizabeth Gooch so successful as creativity and
new ideas made her different and superior than other competitors. This traits of creativity is not
found in managers thus, lacks in business world.
Skills
Leadership skills- This skill of Elizabeth Gooch made her able to motivate and
influence its employees which makes them more productivity and efficient and lead to
achievement of targets thus, lead to success of EG solution. Mangers believes in ordering their
employees instead of motivation them which reduce their efficiency.
Communication skill- An entrepreneur has to communicate with different parties thus,
this skill of Elizabeth Gooch provides her capability to properly transfer her views and opinion
which is necessary to maintain good relation with customers, employees, clients, partners and
other related parties. Mangers are not having much effective communicant skill thus not able to
build healthy relation with associated parties (Adeyeye, Ikupolati and Ndibe, 2018).
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Tom Mercer
he is the founder of MOMA foods which is a London based local food brand.
Skills
Ambition- Tom Mercer is having a ambitious nature which makes him a hard worker and
thrives on reaching and completing small milestones that are stepping stones to major goals. On
the other hand mangers are not so ambitious and give up their task when going gets tough.
Perseverance- This skill of Tom Mercers makes him able to look failure as a important
part of learning which keeps and motived and directed towards his goal and also maintained
Optimism and positivity in him. Mangers are not so persistence thus, lack positive feeling for
achieving targets.
Traits
Self starter- Tom Mercer is having a trait a of self starter who do not require direction or
motivation from anyone. He is not a person who wait for any opportunity instead likes to create
opportunity thus, they are highly proactive. Managers are not self starter and require guidance
and motivation (Brush and et. al., 2019).
Open minded- This trait of Tom Mercer makes him capable to see all the prevailing
opportunity which exists around them and also directs their focus towards achievement of their
objectives and goals. Mangers are not so open minded thus, not bale to see hidden or foresighted
opportunity.
Characteristics
Flexibility- This characteristics of Tom Mercer makes him adaptable as per the prevailing
situation and conditions (Dana, 2018). Flexibility is necessary for an entrepreneur as it makes
them able to remain coordinated with current situations. Managers are not enough flexible thus
left behind in business market.
Empathy- This characteristics of Tom Mercer provides him the capability to understand
human behaviour and what's going on in someone's mind thus, he is able to make proper
estimation about what product or features and services will be liked by its customers thus, this
makes him successful. Managers are not having much understanding of human behaviour.
P6) Entrepreneurial motivation and mindset
The mind set and motivation level of an entrepreneur is depend on their personality and
other traits. To make an evaluation of motivation and mind set of entrepreneurs use of OCEAN
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model is made which provide information about 5 most commonly seen personality traits of
human.
 Openness –the individuals with this type of personality are very bold and creative and
also have a dynamic personality (Dominik and Banerji, 2019).
 Conscientiousness – the persons having conscientiousness personality are mainly goal
oriented with exceptional level of organisational abilities who likes to complete their
work much before deadlines.
 Extraversion – these parsons are emotionally expressive and talkative in nature. They
are quite energetic and have good decision making skills and are also well are about
society and makes efforts for their welfare .
 Agreeableness – person having this type of personality are very kind and full of
empathy. They are most trustable and generous kind of people (Ferreira, Fernandes and
Kraus, 2019).
 Neuroticism – the person with this personality traits are emotionally unstable and full of
anxiety and mood swings.
Philip green is having an Extraversion personality trait as he is very energetic which
keeps him motivated and directed towards his goal. He also likes to share his views and opinion
with employees to motivate him thus, he is also emotionally expressive. Elizabeth Gooch is
having a Openness personality which makes her creative and more innovative. She is also very
bold and have a dynamic personality which makes her able to handle all adverse situation. Tom
Mercer is having a agreeableness kind of personality as he is having a characteristics of empathy
who makes all his decision on the basis of needs and desire of customers and also provide better
workplace environment to employees to motivate them for better performance.
TASK 4
P7) Impact of background and experience on entrepreneurship
The impact of background and experience of an entrepreneur on fostering success of an
enterprise is provided below:
Background Experience Impact on
Entrepreneurship
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Philip green Born on 15 march
1952 in in Croydon,
Surrey. Belongs to a
middle class Jewish
family. Father is a
property developer and
successful retailer.
Had his education
from Carmel college
in Oxfordshire. Left
school at young age of
15 as his farther died
thus, have to inherent
family business
(Gartner, 2019).
Belongs to a family
background thus,
better understanding of
retail business. Get
good experience
through handling his
family business.
Elizabeth Gooch She belongs to an ethic
background that
embrace hard work in
her.
At the age of 18
started working for
HSBC bank and left
after 12 months and
started her own
business.
Got knowledge about
finance and other
factors while working
in HSBC bank which
foster her growth as a
entrepreneur.
Tom Mercer He belongs to a middle
class family and
worked for an
organisation as a
consultant.
He is a graduate of
Cambridge University,
and worked as a
management
consultant with Bain
and Co. in the City of
London.
During his job time he
got late for office
because of preparing
launch. This
experience motivated
him to start a food
firm solving this
problem of customers
(Julien, 2018).
CONCLUSION
From this project it can be concluded that different types of entrepreneurial ventures are
their in a business environment like large or global, small or local, social, etc. theses
entrepreneurs are grouped into different typology on the basis of their common characteristics
and features like lifestyle, etc. Role of small business in development and better growth of
economic through providing better employment opportunity and source of income to individuals
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and also enhance GDP of nation. At last it can be summarised that different traits, skills and
characteristics of entrepreneur are there which makes them successful. Background and
experience of entrepreneur also have influence on business venture.
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REFERENCES
Books and Journals
Adeyeye, M., Ikupolati, A. and Ndibe, L., 2018, March. An Empirical Study on the Disparity
between Small Businesses and Entrepreneurship in Developing Economies. In ICIE
2018 6th International Conference on Innovation and Entrepreneurship: ICIE 2018 (p.
8). Academic Conferences and publishing limited.
Brush, C. and et. al., 2019. A gendered look at entrepreneurship ecosystems. Small Business
Economics. 53(2). pp.393-408.
Dana, L. P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Dominik, M. T. and Banerji, D., 2019. US community college entrepreneurship educator
practices. Journal of Small Business and Enterprise Development. 26(2). pp.228-242.
Ferreira, J. J., Fernandes, C. I. and Kraus, S., 2019. Entrepreneurship research: mapping
intellectual structures and research trends. Review of Managerial Science. 13(1).
pp.181-205.
Gartner, W. B., 2019. A good man is hard to find: project management, entrepreneurship and
serendipity. International Journal of Managing Projects in Business. 12(1). pp.114-119.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kuratko, D. F. and Morris, M. H., 2018. Examining the future trajectory of
entrepreneurship. Journal of Small Business Management. 56(1). pp.11-23.
Laukkanen, M. and Tornikoski, E.T., 2018. Causal mapping small business advisors’ belief
systems: a case of entrepreneurship policy research. International Journal of
Entrepreneurial Behavior & Research. 24(2). pp.499-520.
McMullen, J. S., 2019. A wakeup call for the field of entrepreneurship and its
evaluators. Journal of Business Venturing. 34(3). pp.413-417.
Pages, P. W. P. E., 2019. Professor Dr. Rüdiger KabstHuman Resource Management, Small and
Medium-Sized Businesses and Entrepreneurship.
Pelz, M., 2019. Can Management Accounting Be Helpful for Young and Small Companies?
Systematic Review of a Paradox. International Journal of Management Reviews. 21(2).
pp.256-274.
Randolph, R. V. D. G., Li, Z. and Daspit, J. J., 2019. Toward a Typology of Family Firm
Corporate Entrepreneurship. Journal of Small Business Management.
Singh, S. K. and Gaur, S. S., 2018. Entrepreneurship and innovation management in emerging
economies. Management Decision. 56(1). pp.2-5.
Turner, T. and Gianiodis, P., 2018. Entrepreneurship unleashed: Understanding entrepreneurial
education outside of the business school. Journal of Small Business Management. 56(1).
pp.131-149.
Online:
Small business statistics. 2019. [Online]. Available Through:
<https://www.ukwebhostreview.com/small-business-statistics/>
UK SME Data, Stats & Charts. 2019. [Online]. Available Through:
<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/>
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