Entrepreneurship & Small Business Management

This report addresses various types of entrepreneurial ventures and their relation to typology, Difference and similarities between entrepreneurial ventures, impact of micro and small business on UK economy, importance of small business and start-ups in social economy, characteristics, skills and traits of entrepreneurs, Entrepreneurial personality and entrepreneurial motivation and impact of background and experience on entrepreneurs.

ENTREPRENEURSHIP &
SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Various types of entrepreneurial ventures and their relation to typology..............................3
P2 Difference and similarities between entrepreneurial ventures...............................................4
LO 2.................................................................................................................................................6
P3 Impact of micro and small business on UK economy............................................................6
P4 Importance of small business and start-ups in social economy..............................................7
LO 3.................................................................................................................................................8
P5 Characteristics, skills and traits of entrepreneurs...................................................................8
P6 Entrepreneurial personality and entrepreneurial motivation.................................................9
P7 Impact of background and experience on entrepreneurs......................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
An entrepreneur is the individual who starts their own business and thus bears all the loss
and rewards. Entrepreneurship is the process of creating own business and making it a successful
business by raising profit.
This report addresses various types of entrepreneurial ventures and their relation to
typology, Difference and similarities between entrepreneurial ventures, impact of micro and
small business on UK economy, importance of small business and start-ups in social economy,
characteristics, skills and traits of entrepreneurs, Entrepreneurial personality and entrepreneurial
motivation and impact of background and experience on entrepreneurs.
MAIN BODY
LO 1
P1 Various types of entrepreneurial ventures and their relation to typology
Entrepreneurship is basically the art of building their own business and thus driving it up
to the immense profit. Entrepreneurial ventures are their different enterprises being established
by the entrepreneurs for making product and thus expanding the business. It basically offers
various types of innovative offering to the customers (Kirzner, 2015). There are different types
entrepreneurial ventures which are as follows.
Small business venture
This type of venture is generally independently owned as well as operated and thus is not
involved in innovative of the marketing practices. These generally have less number of people
and has less profit margin. These business are normally involved ins selling the existing products
and does nit innovate on great basis due to which their revenue remains low along with the low
customer base.
Large company venture
These are the ventures which are highly involved in the innovative practices and thus
have great profitability margin. In terms of the employees, this types of venture generally
contains large number of staff and a great number of departments like marketing, finance, R & D
etc. These ventures have high revenue generating capability and thus have large customer base
due to its presence in different location.

Scalable Start-up ventures
The scalable start-up are the ones which are being established by the entrepreneurs for its
development and the generation of profit (Venkataraman, 2019). These are known by the
scalable because these type of ventures have the full potential to make revenue and thus grow
across the entire world. The entrepreneur hires different employees for the business and hence
brings our innovative ideas for taking the company to the milestone.
Typology of entrepreneurship
Entrepreneurship typology is basically the term that is being used for classification of the
different types of entrepreneur and ventures. These are basically various types of entrepreneur
which comes under this typology.
Innovators
These type of entrepreneur in the typology relates to the large ventures which are highly
engaged in building innovation in each and every aspect of their business. These entrepreneurs
bring forth the innovative ideas and suggestion and thus lead to the growth of the firm. Within
the typology of entrepreneurship they are the first who forms the base and thus relates to the
large firms and organizations (Venkataraman, 2019).
Lifestyle entrepreneurship
This type of entrepreneurship includes the individual that establishes the business with
the aim of modifying their personal lifestyle and thus ins not directly involved in making the
profits. This includes the small sized firms which mostly provides the method for development
of the certain entrepreneurial culture like lifestyle entrepreneur (Schaper, 2016).
Survival entrepreneurship
The main objective of this type of entrepreneurship is to meet the various financial
obligation and thus survive the ups and downs. This includes start up ventures where their main
aim as well as the long term goal is to survive in the business.
P2 Difference and similarities between entrepreneurial ventures
Small business Start-up business Large companies
Small business are the
ventures whose profit margin
are less are hence generate less
revenue.
Start-up are the ones which are
newly introduced by the
entrepreneurs and hence has
the potential to grow (Parker,
Large ventures are recognized
by great customer base and
high profitability ratio.

2018).
Small business generate their
funding generally form the
grants as well as loans
Start-up rely on the capital of
their investors for the fund
generation.
Large firms have abundance of
capital ans well as revenue and
thus makes money either by
equity capital or retained
earnings (Burns, 2016).
Small business generally have
less growth potential and
generally focuses on making
profit.
Start-up businesses are
basically developed to grow
and develop faster. They have
the full potential to flourish
and grow.
Large business are recognized
buy their high profit and
revenue generation and hence
have the great growth in terms
of money, customer, quality,
resources etc.
Small businesses after their
establishment are adjusted in
the market place and thus can
exist for long term.
Start-ups are the temporary
business and hence thus they
search for more scalable
business model due to which
they may not exist for long
term
Large ventures have their
outlets across the world and
thus have global presence.
They exist for the long term
and thus focus on achieving
their goals and objective.
Small business generally do
not innovate in their business
and remain confined within the
traditional means
Due to high growth potential,
they remain engaged in
inculcating innovation, but
they innovate their products
and structures at slower rate
Large firms are basically
known for their high degree of
innovation and thus makes
profit by constantly innovating
their products.
Similarity
The main similarity between these three firms is that the main objective remains of
making the profit. Whether it is a start-up company or the large firm, any firms is solely
established for making profit and generating high amount of revenue. Besides this, another
similarity between these ventures is to serve the customers better (Kuratko, 2016). Along with
making the profit, another main objective of these three firms is to build a large customer base
for their products and services. Another similarity which exists between these three ventures is

that the market research. From small to large businesses all the ventures are involved in
extensive market research to know the needs and demands of customers. Without the market
analysis, no company or business is able to survive and fight the tough competition. Thus, the
basic function of every organization is to conduct the market research. On more similarity
between these three ventures is that they are focussed towards making quality products and
services in order to entice the customers. Each and every firm strive willingly to provide better
services at reasonable price to make the position in market.
LO 2
P3 Impact of micro and small business on UK economy
Small and micro businesses are generally the enterprises who have immense potential of
growth and thus maintain their revenue ratio below specific threshold level. From past few years,
these small and micro businesses have contributed a large part in the economic development of
UK. Their growth has been influential for UK and thus have helped the country to boost up its
economy. In terms of the employment ratio, due to the growth of these businesses the jobs in UK
has increased form 8% as recorder in 2014 to 12% in 2016. This industry ha provided a vast
number of jobs in their industry to large number of people due to which there has been a
remarkable increase in the employment ratio. The small and micro businesses are well-known for
encouraging the innovation and thus keeping forefront the concept of artificial intelligence as
well as data revolution. Due to their high participation in technology, the advancement, the level
of innovation in each and every sector of UK has been raised for 32.5% to 52.1% which has
eventually reduced the large turnover number to 6% as reported in 2017. Besides this, they also
contribute a large amount to the taxes (Storey, 2016). When the customers purchase the products
from local small businesses then that business generated the vast amount of profit and revenue
which eventually leads top payment of high amount of taxes to the local government. This tax
paid by the small business to UK government is then used the welfare of the society. Due to the
growth of small and micro business in UK from 2012, the tax generation in the country has
raised from 39.3%. This increase in tax has ultimately increased the property value in UK and
hence the house price index to £234,853. Besides this, due to large revenue generation within the
country there has been the establishment of around 50000 projects relating to improving the fire
departments, lightings, schools etc. Apart from creating the employment opportunities for the
people across the world, these small and micro businesses have also contributed a large part in

providing jobs to the local workers. There has been the creation of around 1.9 million jobs in UK
in 2017 due to the growth of this business among which 1.1 million comprises the jobs for local
workers. Through a high degree of innovation, small business normally hire the people who are
not employed by the larger corporation and thus contribute to the development of local economy
(Read and et.al.,2016). Not just the employment opportunities, many large corporations often
depend on these small and micro businesses for their various functions via outsourcing. As the
small business hire the people having innovative ideas thus the large companies outsource their
most of the work to small business. In 2018, there has been an increase in the profit margin of
small and micro industries from 62.3% to 75.2% due to the greater dependence of large
companies for their activities.
Along with this, large companies also contribute a large part in the economic
development of UK. Due to the global presence of large companies in different parts of the
world, their products and services brings multiple currencies in UK which eventually increase
the GDP of UK. Besides this, a huge revenue generated by large companies increase the tax rate
of UK and thus help in the economic development. According to report of 2018, due to large
cash flow in UK from the large companies, the GDP rate has been increased from 42.5% to
62.1% and thus have booted up the economy of UK.
P4 Importance of small business and start-ups in social economy
Small business as well as the start-ups are equally important than the larger corporation
as they play the vital role in boosting up the economy of UK. Since 2012, there has been an
increase in the number of small and start-up businesses in UK form 52.3% to 82.1% due to
which the economic development of UK is on rise. These business not only increases the GDP of
UK but also plays a major role in improving the overall condition of society. While on one hand,
these businesses offers quality products to the customers on the other hand, they are highly
involved in providing the employment opportunities to the rural and nearby areas along with the
people from across the world. These businesses provide wide range of employment opportunities
for the people and thus hire them for the various functions. They attract the new and fresh talent
who brings creativity for the business and thus recruit them Besides this, they also employ the
local workers (Cooper, 2017). Large businesses in UK generally depends on the start-ups and
small business for making their work done and for completing their activities thus they outsource
their work to these small businesses for which they need talented workers. Thus, in order to

perform these tasks they hire the local workers. Besides this, through high degree of innovation
they attract the candidates from around the world and thus provide them the employment
opportunities. According to a report of 2018, due to the growth of start-ups in UK there has been
around 50000 local workers who are employed and thus are not jobless. This high number have
transformed the society of UK and have improved their quality of life. Besides this, the start-ups
have high degree of innovation capability and are focussed towards inculcating innovation in
each and every aspect. This production of the innovative products eventually helps the entire
society to improve their standard of living and brings various opportunities for them. Through
this innovation, they develop a system through which the people of society can easily lead their
life. Due to the emergence of small and start-up companies in UK, there has been a drastic
increase in technological and automation level from 6% to 18% on average.
LO 3
P5 Characteristics, skills and traits of entrepreneurs
Characteristics of entrepreneur
Self motivation
One of the most important characteristics of good entrepreneur is their self motivation. A
successful entrepreneur is highly motivated to achieve their goals and objective and thus succeed
in their life. This elf motivation eventually drives them towards the attainment of their final
outcome. For example Elizabeth Gooch is one of the well-established entrepreneur who was self-
motivated while starting her career in software solution which eventually led her to great success
(Hitt and Duane Ireland, 2017). Tom Mercer is another famous entrepreneur who encountered
various ups and downs during the career but the self motivation to achieve the goals eventually
resulted in boosting up his career.
Risk
A successful entrepreneur is the one who is well aware of the risks that might hinder their
business and thus analyse the amount of risk form each and every perspective. A good
entrepreneur generally have the ability to take considerable risks and finding ways to deal with it.
For example Elizabeth Gooch when started her own business EG consulting came across various
risks regarding the funds but eventually accepted all the risk and thus developed and efficient
software. Tom Mercer came across the problems of interest of consumers for the healthy

breakfast where he encountered the risk of the strong presence of his competitors. But at the end,
he came out with the innovative idea and became the leading entrepreneur.
Traits
Innovation
A successful entrepreneur has the most important trait of being an innovator. A good
entrepreneur is the one who constantly engaged in creating innovative products for the customer
and thus incorporate innovation in each and every aspect. For example Elizabeth Gooch through
her innovative ideas launched the efficient product operational intelligence which allows the
collection of data in real time to monitor the various processes. Tom Mercer through his
innovation created the healthy breakfast through the blend of yoghurt and oats and thus created
colourful carts.
Skills
Leadership
The most important skill which is required with an entrepreneur is the leadership. A
successful entrepreneur have a well through leadership style through which they influenced their
followers in the positive way. The entrepreneurs become successful when they motivate and
directs their followers in the right direction and thus provides the correct guidance. For example
Elizabeth Gooch while starting the business of software hired 6 employees and thus motivated
them to participate in innovation and contribute their innovate ideas. Due to her correct
leadership style, her company became the leading company having a large number of employees.
Tom Mercer when started the stalls hired 25 people as workers and thus provided them the
correct guidance for ding their work and thus helped them in achieving their goals.
Strategic thinking
This is one of the most significant skill in any entrepreneur which helps them to succeed
in their life and thus attain their goals. Figuring out the future problem and thus finding ways to
solve it is basically the strategic thinking. A good entrepreneur identifies the various
opportunities as well as the threats that will impact their business and hence create new was for
dealing with it (Aldrich, 2017). For example Elizabeth Gooch after leaving HSBC bank decided
to start the own business and thus strategically made the various plans like form where the
capital will be arranged, how many resources will be required, what product will be addressed.
This strategic thinking made her company EG solutions a successful one. Tom Mercer when

started MOMA went through a series of decisions like product focus, redesign of the stalls, place
of the carts, hiring of students and other workers which eventually made his business a large
success.
P6 Entrepreneurial personality and entrepreneurial motivation
The various aspects of the entrepreneurial aspects helps the entrepreneurs in establishing
the correct mindset and thus motivate them for achieving the goals and objectives. There are
various personality as well as the motivational drivers which creates a momentum of the
entrepreneurs and thus dives them in the correct direction (Nambisan, 2017). Self motivation for
example is a kind of factor which motivates the entrepreneurs to achieve their goals and thus
modifies their mindset for developing the strategies for achieving it. Self motivated
entrepreneurs are goal oriented and thus finds various alternative to their problems. They apply
brainstorming and then comes out with the innovative ideas for solving their issues. This reflects
their creative mindset which and thus encourages them to keep moving forward.
Another motivational driver and personality aspect that is risk taking reflects the mindset
of entrepreneurs in the sense that they remain ready to take considerable risks and thus evaluate
the amount and nature of risks from each and every perspective. This ability to take the varied
risks increase the motivational level within them as they remain constantly aware of the type of
risks as well as the solutions to use in different scenarios. Entrepreneurs who are risk tolerant
basically have the mindset to distinguish themselves for the competitors and hence they take
calculated amount of chance over their business in order to differentiate themselves. This
eventually encourages them to develop a culture of growth. Another personality aspect of the
entrepreneurs which is innovation eventually encourages them to incorporate a high level of
creativity in their products and thus capture a great market share (Lipset, 2018). Entrepreneurs
who have this trait generally have the innovative mindset where they are focussed towards
technology. In order to make their products different from that of competitors, Entrepreneurs
bring innovation in their services, structure, supply chain etc. in order to become a market leader.
This increasing demand of customers for innovative products eventually motivates the
entrepreneurs to analyse the market and assess the needs of customers to bring creativity within
their organization. For example when Elizabeth Gooch understood the importance of technology
and found out that the production department of the company was lacking behind in terms of
quantity and also there was need of some technology to monitor the process thus she launched a

product Operational intelligence which was a great innovation in itself and was able to collect
the data in real time and thus monitors the process of production. Thus, this need for technology
eventually motivated Elizabeth Gooch to bring creativity and innovation.
Tom Mercer on the other hand also bought innovation when he realized that most of the
population wants health and hygienic food. Thus, this increasing demand of the consumers
became motivational factor for Tom Mercer and thus invented MOMA team to sell the food at
various sites of London.
P7 Impact of background and experience on entrepreneurs
Positive impact
Experience as well as background of the entrepreneurs matters a lot when it comes to
fostering the entrepreneurship. If the entrepreneurs have relevant experience in the similar field
or any field relating to it then it helps them in making their business success as they are already
aware of the key constraints and the concept of business. Not only does the experience, but the
background of the entire is also helpful in the apparent way. The family background of the
entrepreneurs somewhere helps them in boosting up their motivational level. In fact the poor
family as well as the financial condition of the entrepreneur somewhere encourages them to
succeed in their life. For example Elizabeth Gooch faced a lot of ups and down and thus after her
father's death faced a huge financial crisis and made her condition worst. The pressure from the
society eventually led to her degradation (Barringer, 2015). At the end this societal pressure and
bad financial condition eventually motivated her and thus she committed to become the well-
known personality. Thus, her family background somewhere bought a sense of commitment
within her to excel in life. Tom Mercer being a management consultant had a lot of experience
about the business which eventually led to the development of idea for starting his own food
station to provide the customers with healthy food. His well through experience in the end made
him one of the successful entrepreneur.
Negative impact
Apart from the affecting positively, the experience as well as the background of
entrepreneur sometimes also hinders their growth and thus lowers their motivation level. Having
the passion to start a business but lacking the required experience in the similar field sometimes

demotivate the individual and thus makes them frustrated which have a bad impact on their
development. On the other hand, the bad financial condition of the family also demotivate the
people as they do not get the access of necessities like education and other resources which are
required for surviving and achieving success (Kazanjian, Drazin and Glynn, 2017). Sometimes,
the lower social status impacts the individual in a negative way and thus reduces the sense of
commitment towards work. For example Elizabeth was inexperienced regarding the business and
does not had the relevant knowledge about business and its terms. However, she wanted to start
her own firm. Lacking the relevant experience reduced her motivation level at some stage of her
life, and she decided to give up on her dreams. She joined HSBC but left it after some time. Tom
Mercer although having the relevant experience about business was not very much strong in
terms of his family background due to which he faced various ups and downs that reduced his
motivational level. He at some stage of his life dropped the idea of starting the new business due
to various challenges and problems.
CONCLUSION
It has been summarized that there are different types of entrepreneurial ventures like
small ventures, large ventures etc. and each one them are different form each other in terms of
funding, duration, customers, markets they serve, size etc. But the common attribute which is
shared by them all is making profits and generating revenues. UK is well-known for various
small and start up companies and their growth has eventually braised the economy of UK. These
companies have created a high amount of employment for large population and even the local
workers and thus have helped in economic development of UK. The various characteristics of
entrepreneurs like risk taking, self motivation and the traits skills like leadership motivates them
and thus helps the in achieving their business objectives. Besides this, the experience as well as
background of the entrepreneurs also foster their motivational level and at some point also
reduces their entrepreneurship skills.

REFERENCES
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