Entrepreneurship and Small Business Management

ENTRERENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.......................................................................................................1
P2 : Explore the similarities and differences between entrepreneurial ventures.........................2
TASK 2............................................................................................................................................3
P3: Interpretation and assessment of relevant data and statics to illustrate how micro and small
businesses impact on the economy..............................................................................................3
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy.............................................................................................................................6
TASK 3............................................................................................................................................7
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.............................................................................................7
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset..................................................................................................................................8
TASK 4..........................................................................................................................................10
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.........................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship refers to a process of discovering various new ways to combine
different type of resources in order to create and innovate a new product in market. An
entrepreneur is someone who starts, organises and assumes the risk of operating an enterprise.
Different type of entrepreneurial ventures include small-scale, medium-scale and large-scale
enterprises (Block and et.al., 2015). Small-scale firms have limited resources at their disposal
and thus they need to manage their finances accordingly to make best use of them. In this project
report, analysis will be made on the range of ventures and their typologies and their overall
impact on small businesses in a country. Additionally, assessment of various types of
entrepreneurial mindsets and environments that foster the growth of entrepreneurship in an
economy has also been made in this assignment.
TASK 1
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
An entrepreneur is someone who starts a business with a new idea of a product or service
with an aim to earn higher profits. Risk-taking, creativity and innovation are essential qualities
which are required to become an entrepreneur. Entrepreneurship refers to capacity and
willingness of a person to take risks to launch a creative or innovative product in the market.
Businesses which are set up in order to use innovation and opportunism to contribute a
value to society are known as entrepreneurial ventures. Different type of entrepreneurial ventures
are as follows-
Small business entrepreneurship- These are enterprises set up with limited capital and
operate at a small scale. They have to minimize their costs in order to maximize their profits. An
example of it can be small grocery shops operating in a particular area which operate within their
range of funds provided by owners. They also aim to earn a decent share of profit to sustain their
operations in a competitive market (Collins and et.al., 2014).
Scalable stratup entrepreneurship- In it, entrepreneurs start their business with a new
vision believing that they can change the world with it. Their funding comes from venture
capitalists and they hire the best talent. For e.g.- Facebook which was started by Mark
1

Zuckerberg in 2004 is an example of this as social networking websites were pretty new at that
point of time.
Large company entrepreneurship- Large companies can sustain innovation and offer
new products which revolve around their core variants. Innovation of new goods is necessary
because of dynamic market and ever-changing customer needs and demands (Elo and
Volovelsky, 2017). Example of it can be Google which is a large company having operations at a
wide scale and has employees from all over the world working in it.
Social entrepreneurship- Entrepreneurship which involves creating goods and services
in order to meet social obligations and needs is known as social entrepreneurship. For e.g.-
Safepoint Trust is a charitable trust based in U.K. which focuses on providing safe injections. It
aims on educating people worldwide on the use of safe injections.
Typology of entrepreneurship- The ventures discussed above are linked with different
type of typologies given as below-
Serial entrepreneur- A person who continuously brings out new ideas related to goods
and services required by consumers is known as serial entrepreneur. Innovations are brought by
introducing new goods and services after identifying needs and demands of consumers (Forson
and et.al., 2014). A serial entrepreneur uses scalable startup entrepreneurship venture.
Female entrepreneur- Women who take the risk of venturing into a new project and
also control their ventures are female entrepreneurs. Female entrepreneurs mostly use small
business entrepreneurship model.
Social entrepreneur- Social entrepreneurs are the ones who set up enterprises to
contribute to the cause of society. They work not for earning profits but for fulfillment of needs
of society.
P2 : Explore the similarities and differences between entrepreneurial ventures
Different types of ventures have differences but they also share similarities with each
other. The differences are provided as below-
Basis of
difference
Small business
entrepreneurship
Scalable startup
entrepreneurship
Large company
entrepreneurship
Social
entrepreneurship
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