Entrepreneurship and Small Business Management

UNIT 9 -
ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Content
INTRODUCTION...........................................................................................................................1
Types of Entrepreneurial Ventures .............................................................................................1
Similarities and Differences Between Entrepreneurial Ventures................................................2
Impact of SME on Economy........................................................................................................5
Importance of Small Businesses And Business Start-Ups To The Growth of The Social
Economy. ....................................................................................................................................6
Measuring the aspects of entrepreneurial personality reflect motivation and mindset ...............9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Every person has desire to have their own business and people who have the innovative
business ideas and convert them into high profits economic activity according to market trends
are known as entrepreneurs (Barba-Sánchez and Atienza-Sahuquillo, 2018). They have the
ability to take risk in order to increase their profitability and business growth buy satisfying
needs and wants of its customers effectively. Entrepreneurship is very essential for small
business enterprises as it helps to increase thee efficiency by analysing all the internal and
external environment factors to determine strengths and weaknesses of business to compete in
market effectively and achieve core competency. To be more effective in making decision
entrepreneurs also need to have potential skills and knowledge to determine all the factors which
is available in the market. In this report there is a brief explanation about entrepreneurs and small
businesses. Entrepreneurial ventures and typology is discussed in report with the impact of SME
in the economy. Additionally, report also highlights the importance of small businesses in
growth of social economy, skills and traits of entrepreneurs which helps them to increase their
potential and influence of experiences and background of entrepreneurs in their success.
Types of Entrepreneurial Ventures
Entrepreneurs are the person which has the ability to establish new business by analysing market
trends. Entrepreneurs are also having the high potential to take risks by innovating and creating
new products and services which increases profitability in market effectively. The business
which is used to portray innovation of products and services is called entrepreneurial ventures.
Entrepreneurs formulate strategic plan by analysing all the available resources to reduce the cost
and survive in market effectively (Stenholm, Pukkinen and Heinonen, 2016). Entrepreneurial
ventures are very unpredictable with high profit margins which also have the potential to
compete with potential player in market.
Lifestyle Entrepreneurship
Lifestyle entrepreneurship is the types of venture in which the entrepreneurs are more focuses on
improving their lifestyle and not profit margins (Wales, 2016.). This type of venture is based on
the passion of entrepreneurs and also has the potential to innovate and create new trends in
market effectively. Lifestyle entrepreneurship is focusing on what are the passion of a person and
making it as a business to earn profits lifestyle entrepreneurs are also very essential in
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understanding and making effective changes in their outer society to become more successful.
These entrepreneurs are also known as home entrepreneur who work in their comfort zone.
Individual in this type of venture are more productive and also came up new ideas regularly to
develop efficient lifestyle and improve its business. Serial entrepreneurs are those people who
starts new business ventures to sell them and profit from it.
Social Entrepreneurship
Social entrepreneur are the individual who have the ideology to support and help the society with
their skills and knowledge. These entrepreneurs are more willing to become social entrepreneurs
as they more focused on society upliftment (Rodríguez-López and Souto, 2019). Social
entrepreneurship is a venture which is started by these types of entrepreneurs just for social
welfare and solving the issues of society effectively. The main of social entrepreneurial venture
is to improve the society by doing various activities which a person thinks to do it in their ideas.
They have the capabilities to innovate just increase the standard of living of society and do not
care for profits.
Growth Entrepreneurship
The growth entrepreneurship venture is a business which is more focused to grow by
achieving its objectives and improving its internal and external factors. The business focuses on
efficiency by research and develops of products and providing high quality to its stake holders it
aims to leading in the market and gain growth rapidly. The main aim of these ventures is to gain
better profits in long term and increase the size of the business effectively. The entrepreneurs
who are more focused will be more interested in this type of ventures and commonly innovators
and builder entrepreneur are related to growth venture. Female entrepreneur are also very
focused and now growing rapidly in market to mark their presence effectively.
Similarities and Differences Between Entrepreneurial Ventures
Serial and Lifestyle Venture
Serial entrepreneurs are the person who has the aim to start new business and sell them to earn
profits and increase their potential (Wright and Westhead, 2016). These entrepreneurs are having
the ability to increase profit margins of the business by taking high risk and converting those
businesses into success and then selling them in market. They also have effective skills which
separate them from other entrepreneurship ventures.
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