Unit 9 - Entrepreneurship & Small Business Management

Entrepreneurship & Small
Business Management

Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1: Explain distinct entrepreneurial venture types with relate of typologies of
entrepreneurship..........................................................................................................................1
P2: Discuss differences and similarities between different entrepreneurial ventures.................3
TASK2.............................................................................................................................................5
P3: Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy.............................................................................................5
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................6
TASK3.............................................................................................................................................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.................................................................................................................................9
TASK4...........................................................................................................................................10
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is refers as the business activity and discipline where entrepreneur take
the risk and responsibility to manage and control risk effectively comes in business or effectually
implementation of business idea developed by entrepreneur that is new & innovating.
Entrepreneur is considered as the person who set up business / starts up or taking financial risk in
hope of earn profit. Entrepreneurs have the ability to develop and apply new & innovative
business ideas in real world that has prominent impact over society (Bruce, Gurley-Calvez and
Norwood, 2020). It is the responsibility of a person who holds risk and responsibilities regarding
analysing and satisfying needs of society in order to make their life and living better that helps
the productivity as well as profits of firm which is the end goal of any business enterprise.
This report is based on entrepreneurship and small business where different types of
entrepreneurial ventures are explained with their relationship with entrepreneurial typologies.
Furthermore differences and similarities between entrepreneurial ventures and impact of micro &
small business over social economy are discussed within the report. Importance of business start
ups in economic growth, distinct characteristic and skills of successful entrepreneurs from
business managers are also consist within the report. In addition influence of entrepreneurial
personality on motivation, effectual examples of successful entrepreneurs are also considered
with relevant experience and backgrounds.
TASK1
P1: Explain distinct entrepreneurial venture types with relate of typologies of entrepreneurship.
Entrepreneurial venture all about risk, success, failure and embracing it and learning form
it. These are refereed as corporate or individual entrepreneurship that serves different functions
of economy and potential of growth and innovations that has prominent impact over society in
terms of rising living standards of people, giving contribution to economic growth (Dana, 2018).
Difference between serial entrepreneurs, entrepreneurs and owner-managers
Serial entrepreneurs: It is based on working on better ideas and running business
through these ideas. This type of entrepreneurs are considered as the entrepreneurs that faces
many obstacles and challenges in order to manage their operations with effectiveness and
perfection that has prominent impact over accomplishment and achievement of successful
1

business results. These types of entrepreneurs are assist to create new markets and attain higher
profits in order to overcome challenges comes in unwanted way.
Entrepreneurs: On contrary this type of entrepreneurs are referred as individuals who are
responsible for accomplishments of tasks and work in unique and creative manner. These are the
people that are responsible to manage resource utilisation in effective and efficient ways that
leads management tasks with more capabilities. These types of entrepreneurs are reflects
significant impact in achievement of sustainable business objectives.
Owner-managers: While these are the individuals that manage change business
organisation at smaller scale and introduce change that has prominent impact in successful
business outcomes as well as satisfying and fulfilling needs, demands and expectation of
customers. As compared to above entrepreneurs these are the individuals holds the
responsibilities of successful management of small businesses in order to obtain profit through
customer’s satisfaction.
Types of entrepreneurial ventures
Small business: It is defined as the business entity that is operates at smaller level with
250 limited employees with turnover under $50000. It is most significant type of venture that has
immense support on national economy important for overall economic growth of nation. It is the
type of entrepreneurial venture where owner of firm holds all authorities towards business
functions direction and management (Donckels and Miettinen, 2019).
Enormous firms: Another important type of entrepreneurial venture works on larger
scale with aim as to expand business for future growth and sustainability with larger number of
employees and requires effective control and management. The number of employees and
business turnover lies in millions as per enormous type of entrepreneurial venture.
Social enterprise: It refers as the another important type of entrepreneurial venture that
holds the responsibility of societal wale fare based on solving social problems and helps
customers to make their lining better and easy though find solutions of daily lives.
The typology of entrepreneurship
Lifestyle: This is an important type of entrepreneurship worked to enhance lifestyle of
social people through satisfying needs and demands of customers in order to make their living
better. Thus it leads to satisfy customers needs that helps in making their living standard better. It
2

is related to large scale enterprises that come up with objective to meet specific needs and wants
of customers. This will impact overall economic growth of society in significant manner.
Growth firm: This type entrepreneurship works with aim as to reach highest business
growth and has prominent impact in terms of achievement of higher profits with providing better
quality of goods and services to customers. Growth entrepreneurship is associated with scalable
type of entrepreneurial venture who spent good amount on developing employee skills in
effective manner that has prominent impact in rising goodwill of business within market.
P2: Discuss differences and similarities between different entrepreneurial ventures.
Similarities between small, large and social business:
Meet the needs of customers: Small scale business enterprises operate business in order
to satisfy customer’s demands that lead prominent impact over societal economic growth.
Similarly large scale business focus on satisfying customers needs and wants at a international
level through offering them goods and services at better quality (Henrekson and Sanandaji,
2020). At the same the main aim of social business is to improve quality of living for society.
Thus these all type of entrepreneurial ventures have common objective to serve social needs and
wants.
Upliftment of society: There are more similarities between small, large and social
business in terms of society upliftment. For instance small business offer employment
opportunities for unskilled employees. Similarly large scale enterprises offers better goods and
services as well as employment for skilled employees. At the same time social enterprises works
for well fare of society and enhancing their living standards through better offerings.
Capital investment: For small, large and social scale enterprises capital investment is
needed for all in terms of effective operation and functioning. Capital is one of the most
important aspects of any business needed for effective management. All needs some capital that
has prominent impact over successful running of business with better offerings.
Market research: One of the major requirements based on similarities between all above
types of entrepreneurial ventures that is market research conduct by small, large and social
businesses for understanding needs and wants of customers.
Difference between small, large and social business
Basis of difference Small business Large business Social business
Meaning It refers as the While large scale On contrary social
3

business which is
operated at small and
narrow size with
required of less
control and
management of
business (Julien,
2018).
business are those
firms who needs more
amount for operation
and functioning as
compared to small
enterprise with little
more management
requirement.
businesses are
enterprises that work
with aim as to social
well fare. Profit
maximisation is not a
primary objective of
social enterprises as
compared to small
and large businesses
whose main aim is to
profit earning.
Employee size When it comes to
employees size small
business limits
employees as 250.
As compared to small
business large scale
business enterprises
employees exists in
millions (Ismoilov
and et. al., 2020).
While employees in
social scale
enterprises exist in
billions, above as
compared to small
and large scale
businesses.
Annual turnover Based on small scale
business enterprises
the turnover of
business exists under
$50,000.
While on contrary of
small scale business
enterprises turnover of
large enterprises lies
in millions and
billions.
On the other hand
social scale business
enterprises have more
turnover than both
small and large
enterprises (Laudano,
Marzi and Caputo,
2018).
4

TASK2
P3: Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy.
Creativity & innovation is defined as act of turning new and imaginative ideas into real world. It
is characterised as the ability to perceive world in new and fresh ways to find hidden patterns, to
make connection between unrelated phenomena & to generate solutions. It comes in two
processes thinking then producing. There are numerous sources of getting new and innovative
business ideas including customers as to know what they want, existing organisations also
helpful in evaluating new and creative business ideas. Distributions channels are also seen as
marketing the entrepreneur’s newly developed products and goods. Governments are also an
important source of new product ideas in many ways through industrial policies, investment
guidelines, five year plans, annual plans etc. all are considered as sources that helps
entrepreneurs to get and focus on new business ideas that plays significant role in development
of society. One of the best ways to protect intellectual property rights is making employees
understand what needs to be protecting so that they can better understand how to protect it.
Intellectual property is the bloodline of every organisation thus it is very important to protect it in
effective manner (Marom and Lussier, 2018).
Role and importance of small firms
Ancillary small industrial units: This type of small scale industry holds status of
ancillary small industry if it supplies a minimum 50% of its products to other business. For
instance parent unit. These small industries manufactures machine parts, tools and components,
standard products for parent unit that has prominent role in providing employment opportunities
for non-skilled individuals.
Export oriented units: It consists as the industry that possesses status of export oriented
units if it exports exceeds 50% of its manufacturing. This type of small business is opt for
compensation like export bonuses and other grants awarded by government for export units. This
helps in rising over all economy of nation.
Small scale industrial owned by women: An enterprise owned by women who can alone
and combined share minimum capital of 51% and can opt for the special grants from the
government with low interest rates on loan. Small scale industrial owned by women plays
significant role in women empowerment of society.
5

Tiny industrial units: It refers as the industrial or enterprise whose expenditure on plant
& machinery doesn’t exceed 25 lakhs. This type of small business has prominent role in rising
social standards.
Micro business enterprises: It considered as very small companies whose turnover is lies
between $632,000 and less and $316,000 or less on its balance sheet with having employee
limitation of 10 or less. Micro business plays important role in rising social economy through
providing job opportunities un-skilled people of society and leads to poverty reduction of
society.
Village industries: These are refers as industries that are located in rural areas and manufacture
any product performs any service with or without the utilization of power is known as village
industries. These have fixed capital investment as per head, workers and artisan which doesn’t
exceed 50,000. These are important in terms of betterment of society standards.
P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy.
Small business enterprises managed at small and local areas with limited employees and
less control & management is required has prominent impact in various areas of society that
contributes to overall economic development of society and nation (Mosbah and et. al., 2020).
Following are the importance of small business in context of economic development of society:
Poverty reduction: Small scale business operates at local level with limited operation and
perform significant role in minimising poverty level of society through making them capable of
being purchase better through offering them employment opportunities. Through employment
people are able to make their daily living better and that added a value to societal development.
Employment generating: These enterprises are operated at local level and for functioning
requires workers and employees who are non-skilled or having some skills and abilities. Thus
this helps to provide employment opportunities to local people so that they can work for
betterment of their livings and plays prominent role in development of social economy.
Enhancing living standards: Small scale enterprises provides employment opportunities for
skilled as well as people who are non skilled thus makes them better life in terms of fair wages
and salary that has prominent impact over social development that contributes to overall
economic development of a country.
6

Offering better quality: This type of business enterprises offers effective quality of goods and
services at lower prices so that people from lower to middle class can use these offerings and
make their daily lives easy. This will helps in building status and standards within society and
contributes towards development of overall economy.
Society wale fare: Small business enterprises not only offer employment opportunities but also
offer good quality of goods and products to people so that they can make their livings better.
Thus small scale enterprises plays significant role in providing wale fare to society.
TASK3
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.
Characteristics of entrepreneurs: It considered as the quality of entrepreneur by which
attainment of objectives and goals are become clear (Nassif, Armando and Lopes La Falce,
2020). Following are the characteristics of Elizabeth Gooch & Tom Mercer:
Characteristics of Elizabeth Gooch:
Visionary: Elizabeth Gooch has visionary characteristic based on long term vision. As
her vision to be a new venture of business shows her decision to start the software firm. It is an
important characteristic that shows effectiveness of a leader.
Freedom oriented: Having worked in HSBC for 12 months Elizabeth resigned her
service and beginning a new small business. This skill of respective entrepreneur establishes her
as independent and freedom oriented person.
Characteristics of Tom Mercer:
Risk tolerance: One of the important characteristic of respective leader is risk tolerating
ability. Tom mercer was distributing products into market place and he was assuming the result
would come in later days. At this time he got different type of entrepreneur quality which is risk
taking tolerance individual.
Rare business skills: Tom was started a new business, the model he developed is like
credit base supply chain. He assumed his business model would hit to the market. Such kind of
attitude has very rare business skills.
7

Skills of entrepreneurs: It is defined as the ability of a person under which capabilities and
working experience get changes over constant period of time. Following are the skills of both
entrepreneurs that influence others:
Effective communication: This skill is based on communication capacity of ideas for
free association between business and entrepreneur. It is used to set strategically goals and
objectives so as to make human resources of business within a company that helps them to find
out solutions more successfully (Sebikari, 2019). Elizabeth has effective communication skills
that have prominent impact over influencing others.
Critical thinking: It consists as the evaluation of problems based on effective decision
making in terms of resolving and finding out solutions. Elizabeth has problem resolving skills
based on several issues come within her path to become a successful leader.
Problem solving: Entrepreneurs are risk taker in nature needed for better growth and
creates opportunities for business. There are some skills particularly needed for improve
reasoning. Analytical skills are also required for getting effective solutions for different problems
based on creative and innovative ideas. Tom mercer has the ability to deal with problems
effectively.
Decisiveness: This skill is based on capability of making fast and quick decisions that lies
on facts to make possible effective choices that has prominent impact over decision making
ability of a successful leaders. Decision can be taken through identifying problems, thinking of
methods, then applying suitable ideas and plans to take effective decisions based on facts &
figures.
Personal traits of entrepreneurs:
Ability to analyse: entrepreneur evaluates and analyse structure and data that leads
contemporary conclusions. It helps to make effective sense of data collection that can be filling
with direction forecasting needed by industry. Data analysis helps in evaluating impressive
opportunities, assessing and creating ways in entrepreneurship. This trait of entrepreneur is based
on descriptive, predictive & prescriptive analysis so as to make effective choices (Shadibekova,
2020).
Resolution oriented: A successful entrepreneur works on adequate orientation through
which several solutions are offered so as to approach completely methods and tools which are
8

based on suggestion of creative and innovative business ideas. It is the major personality trait of
an entrepreneur that reflects quality, originality, adaptively and conformity in efficiency.
Passionate: It is another important personality trait of an entrepreneur to be motivated
and passionate in nature that shows successful entrepreneur that helps them in becoming
victorious entrepreneur. These traits help in determine achievement of goals that reflects building
and implementing effective ideas to make dreams come true. In order to recognize growth
opportunities for future needed resources must be utilize in proper organised structures.
Resourcefulness: Another significant ability of entrepreneurs is to locate proficient ideas
that help in evaluating problems and solutions for effective resolutions. Resourceful refers as
thinking, opinions and power to visualise and see feasible ways to obtain desired goals. This type
of personality trait of entrepreneurs sticks towards vision & helps to explore progress
opportunities regarding objectives of entrepreneurs.
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset.
Effective entrepreneurs posses strategic perception towards attainment of dreams based on long
terms success of business. Successful entrepreneurs make effective decisions regarding planning,
analysing and evaluating effective business strategies so as to implement effective ideas suitable
and needed for growth of business. It is also important for entrepreneurs to become fair and
equal towards dealing with customers, employees as well as vendors so as to make effectiveness
and efficiencies in decision making that has prominent impact over business productivity. The
ability of leaders and entrepreneurs to be inspires employees and staffs for better performance
and rising their productivity reflects as motivational and influencing personality of leaders.
Critical thinking is an important skill that is possessed by entrepreneurs that helps to develop
effective strategies for growing enterprise that has prominent impact in creating different ways to
resolve problems arise in path of business growth. In order to make business different form
competitors it is important for entrepreneurs to have unique and specific business ideas and
strategies that has prominent impact over business performance as well as encourage other
employees to become successful in their work and tasks. It is essential for entrepreneurs to have
clear directions towards setting targets that motivates employees to achieve better performance
within specified time limit so as to make effectiveness in their performance as well as enhance
productivity (Turgunpulatovich and Bulturbayevich, 2020). Action orientation is another
9

important requirement of entrepreneurs that leads to quick decision making and discipline to
carry out actions based on getting quick results. Successful leaders are decisive in nature that
helps them to make creative and innovative business strategies in order to improve working
process of business and influence others to be ambitious and committed towards vision and
dreams.
TASK4
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.
Effective entrepreneur is one who works hard and committed to never giving up attitude
and spirit and focus on adjective to become successful leaders who generates employment
for society and encourage others for work hard to obtain effective position within market.
It also helps to build huge impact over economic development and growth of society
(Venkataraman, 2019). Following are the suitable examples of successful entrepreneurs
with their background and experience:
Elizabeth Gooch
Background: Elizabeth Gooch, the daughter of William Villa-Real was born in 1757 in
Edwinstowe. After her father’s death she received a sustainable inheritance but her mother
arranged a marriage for her to William Gooch in 1775 before she realise she was
financially independent. Her husband took control over money and abandoned her in Lille
in 1778. For some time she worked as an actress with a theatre company. Later she was
involved in liaisons with various princes and military leaders.
Experience: Elizabeth is a founder and CEO of EG solutions, a small business selling
operation management software that helps clients to generate improvements in operational
performance and efficiency. Elizabeth started working at the age of 18 in HSBC bank after
completion of 12 months for consultancy that helped large firms to find better ways to use
their staff. After 8years later, she started her own business EG consulting financed by
$1,000 at the age of 26. It was on success path during 2005 but, during 2006 to 2007 EG
solutions suffered with $7, 00,000 & $8, 00,000 losses. Thus it cut costs by $1.2 million in
2008.
Tom Mercer:
10

Background: Tom Mercer was born in 1964 in Pittsburgh; Pennsylvania is a former
professional tennis player from the US. Mercer enjoyed most of his tennis success while
playing doubles. During his career he finished runner-up in 2 doubles events. He receives
his career high doubles ranking world no.
Experience: Tom Mercer was graduate from Cambridge University, was a management
consultant with Bain and Co. in the city of London. He struck that his problem was a
business idea pre-prepare the blend and then sell it to commuters from a key point for
instance tube, train, tram ,bus stations around London. And thus MOMA was born in 2006.
Further he realises to think about healthy breakfast needed to get products into the hands of
key consumers. He stayed nights for chopping fruits, blending them with yogurts and oats,
breaking number of blenders and pouring into water bottles picked up from Tesco. After
couple of months he receives positive feedbacks form consumers to take samples and
founds best station to set up pop-up stall (Wynn and Jones, 2019).
CONCLUSION
Based on above consideration it is defined as the there are several forms of entrepreneurial
ventures that has prominent impact over socio-economic development of nation. It plays
important role in overall economic growth of nation in terms of generating employment
opportunities; rising living standards etc. furthermore there are effective relationships and
differences between entrepreneurial ventures and with typologies and entrepreneurship are
considered within the report. Moreover features, characteristics, skills and traits of
entrepreneurs are also consisting with suitable examples based on entrepreneurs
backgrounds and experiences.
11

REFERENCES
Books and Journals
Bruce, D., Gurley-Calvez, T.J. and Norwood, A., 2020. Taxes and Entrepreneurship: A
Literature Review and Research Agenda. Foundations and Trends® in Entrepreneurship. 16(5).
pp.393-443.
Dana, L.P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Donckels, R. and Miettinen, A., 2019. Entrepreneurship and SME research: on its way to the
next millennium. Routledge.
Henrekson, M. and Sanandaji, T., 2020. Measuring entrepreneurship: do established metrics
capture Schumpeterian entrepreneurship?. Entrepreneurship Theory and Practice. 44(4). pp.733-
760.
Ismoilov, R.B. and et. al., 2020. The Essence Of Small Business And Private Entrepreneurship
And The Theoretical Basis Of Its Development. The American Journal of Applied
sciences. 2(08). pp.45-50.
Julien, P.A. ed., 2018. The state of the art in small business and entrepreneurship. Routledge.
Laudano, M.C., Marzi, G. and Caputo, A., 2018. A decade of the International Journal of
Entrepreneurship and Small Business: a bibliometric analysis. International Journal of
Entrepreneurship and Small Business. 33(2). pp.289-314.
Marom, S. and Lussier, R.N., 2018. Developing a small business management concentration
within a business degree. Small Business Institute Journal. 13(2). pp.15-30.
Mosbah, A. and et. al., 2020. The influence of length of stay on immigrant
entrepreneurship. International Journal of Entrepreneurship and Small Business. 40(3). pp.309-
321.
Nassif, V., Armando, E. and Lopes La Falce, J., 2020. Entrepreneurship and Small Business in
the Context of Post Covid-19: Is there Light at the End of the Tunnel?. Nassif, V., Armando, E, &
La Falce, JL (2020). Entrepreneurship and Small Business in the Context of Post Covid-19: Is
there Light at the End of the Tunnel.
Sebikari, K.V., 2019. Entrepreneurial performance and small business enterprises in
Uganda. International Journal of Social Sciences Management and Entrepreneurship
(IJSSME). 3(1).
Shadibekova, D., 2020. Shadibekova Dildor, Nosirova Na Prospective Development Analysis of
Small Business and Entrepreneurship of Uzbekistan. Архив научных исследований, (16).
Turgunpulatovich, Y.E. and Bulturbayevich, M.B., 2020. THE ESSENCE OF SMALL
BUSINESS AND PRIVATE ENTREPRENEURSHIP AND THE THEORETICAL BASIS OF
ITS DEVELOPMENT. International Engineering Journal For Research & Development. 5(6).
pp.7-7.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal ideas
for the next twenty-five years of advances. Emerald Publishing Limited.
Wynn, M. and Jones, P., 2019. Context and entrepreneurship in knowledge transfer partnerships
with small business enterprises. The International Journal of Entrepreneurship and
Innovation. 20(1). pp.8-20.
12