Entrepreneurship & Small Business Management

This document discusses the concept of entrepreneurship and small business management. It covers topics such as types of entrepreneurial ventures, their relationship with typology of entrepreneurship, the impact of micro and small businesses on the economy, and the importance of small businesses in the social economy. The document also explores the role of small businesses in local, regional, national, and international economies.

Entrepreneurship & Small
Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1: Entrepreneurial Ventures.......................................................................................................1
P2: Similarities and Differences Between Entrepreneurial Ventures..........................................4
LO2..................................................................................................................................................7
P3: Impact of Micro and Small Businesses.................................................................................7
P4: Importance of Small Businesses............................................................................................9
LO3................................................................................................................................................10
P5: Characteristic and Skills of Successful Entrepreneurs........................................................10
P6: Entrepreneurial Motivation and Mindset.............................................................................11
LO4................................................................................................................................................12
P7: Hinder or Foster Entrepreneurship......................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is a quality which develops in a person who see the new business
opportunities. On the basis of opportunities, the person start their start-up or business for
achieving great profit in the market. On the other side, entrepreneurship is also an ability to
develop and innovate new business venture on the basis of market requirements. Self-motivation
is too necessary to be a successful entrepreneur in the market. Each successful entrepreneur
always try to develop or improve entrepreneurship quality for achieving better results.
Entrepreneurship is always looking for provide such products and services to the customers
which no business is currently provided. Earning high profit is not only main objective of
entrepreneurship. Many times entrepreneurs start organizations for fulfilling their social
responsibilities as well. This report is discusses various types of entrepreneurial ventures and
their relationship with typology of entrepreneurship. This is also discusses the major roles of
micro, small and large businesses in social economy.
LO1
P1: Entrepreneurial Ventures
There are various types of entrepreneurial ventures running their business operations in
the market. In these ventures three most popular are High growth ventures, Middle growth
ventures and Survivor growth ventures. These all are discusses below;
High Growth: The first motive of the high growth ventures is gain the highest profit in the
market (Zeller, 2018). In the high growth ventures there are mainly public and private companies
are included. For example: British Petroleum (a Public limited company) and Iceland (a Private
limited company).
Middle Growth: Earning high profit in the market is first motive of ventures which are
included in the middle growth ventures. There are middle growth ventures, which gain profit in
the market but not much high as compare to high growth ventures. There are both types of
companies (public and private) comes under middle growth ventures. Mostly private companies
are the part of middle growth ventures, because they are not able to earn high like public
companies.
Survivor Growth: In survivor growth, mostly those organizations and companies are included
which only work for fulfil social responsibilities. All NGOs (non-profit organization) are the part
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survivor ventures. The main objective of these ventures is collect fund within the market and
spend them in social welfare. For example; The Children's Society (Cook, 2016). Survivor
growth ventures are not gaining profit in the market by selling any product or services. Charity is
the main source of earning for these ventures.
Typology of Entrepreneurship
There are three types of entrepreneurship mainly existing in the market called; Life style,
Scalable and Social entrepreneurship.
Life Style: When any person who highly like to do activities related to the business will
always become a successful entrepreneur. In this type of entrepreneurship, self-motivation of a
person encourage them for start a new business. Most of the people which related to the life style
entrepreneurship are currently owners of high growth and middle growth ventures (Gregg and
Parthasarathy, 2017). Life style entrepreneurship is always looking for new business opportunity
in the market to earn high profit in the future.
Scalable: Scalable entrepreneurship is developed when any person realize anything is
missing in the current market. It is also based on the innovation and creativity. Person who
related to this entrepreneurship always try to innovate such exclusive product or service for the
customers which no one currently provided in the market.
Social: Social entrepreneurship is developed such entrepreneurs who want to do
something good for social welfare. Founders of NGOs mainly comes under social
entrepreneurship (Leitch and Volery, 2017). The main aim of social entrepreneurship is to make
a happy and healthy societies in all around the world.
Relationship Between Entrepreneurial Ventures and Typology of Entrepreneurship
Typology of entrepreneurship is completely relating to the all entrepreneurial ventures
which discusses below;
Entrepreneurial
Ventures
Organization Sector Relationship With
Typology
High Growth British Petroleum Public Life style
entrepreneurship
mostly able to build
high growth ventures
in the market, like;
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British Petroleum,
because they always
passionate for do
things related to the
business. Here is a
scalable
entrepreneurship is
also able to develop
high growth ventures
by their innovation
ability.
Middle Growth Iceland (Retail Co.) Private Middle growth
ventures like; Iceland
are also developed by
both life style and
scalable
entrepreneurships. The
owner of Iceland
company was see the
opportunity of new
business in the retail
industry and then
established this
company which is
currently on its
progressive path.
Survivor Growth The Children's Society Charity Social
entrepreneurship is
always runs survivor
growth ventures in the
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market, like; The
children's society. It is
a charity organization
which is work for
support to poor
children in the UK
(Giudici, 2016). Hare
is charity is the biggest
source of earning for
these survivor growth
ventures.
P2: Similarities and Differences Between Entrepreneurial Ventures
Similarities
There are many similarities are exiting between all entrepreneurial ventures which
discusses below on some basis;
 Strong Willed Entrepreneur: All entrepreneurial ventures are started by the string
willed entrepreneurs which want to do something related to the business in their life.
Here is each entrepreneur in these ventures want to achieve high success through their
operations.
 Funding: There are all entrepreneurial ventures are always looking for sources of
funding (Leković and Marić, 2017). For these ventures funding is very important,
because with the help of it these ventures are able to run their operations.
 Innovation: Innovation factor is always exiting in these all entrepreneurial ventures,
because with the support of innovation they are easily found different productive ways
for achieve effective results in the market.
 Brand Name: Each venture always has a specific brand name. With brand name
entrepreneurial ventures are able to gain people attention in the market. All entrepreneurs
within these ventures try to give an effective brand name to their particular venture for
achieve high brand image in the market.
Differences
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There are many differences are also exiting between these entrepreneurial ventures which
mentioned below;
Basis High Growth
Ventures
Middle Growth
Ventures
Survivor Growth
Ventures
Annual growth rate Annual growth rate in
high growth ventures
is always very high in
the comparison of rest
type of ventures.
Mostly medium
growth rate is
achieved by the
middle growth
ventures. They always
succeed in achieve
favourable profit in the
market.
Its annual growth rate
is always depends on
the charity amount
which it gained in a
year (Krueger,2017). It
has less growth rate
than high and middle
growth ventures.
Managerial Skills Managerial skills in
these ventures are
existing in highly
developed form. With
high developed
managerial skills these
are able to achieve
high profit in the
market.
In middle growth
ventures managerial
skills are not much
developed as compare
to high growth
ventures, but these
ventures most time
working on develop
such skills.
In these ventures no
need of high
managerial skills for
run its operations,
because these are not
working for earn high
profit.
Technology
Investment
These ventures are
highly invested on
employ new
technologies in their
operations.
Middle growth
ventures always try to
expend such only
amount on technology
which highly needed
in their operations.
Survivor growth
ventures are not highly
invest on technology,
because their most
operations are
regulating without hi-
fi technological
gadgets.
Structure Organizational Organizational Structure size of
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structure of high
growth ventures is
mostly highly spread,
because these are
conducting large
number of activities in
the market.
structure of these
ventures are not much
bigger than growth,
because these are only
running their activities
in selected segments.
survivor ventures is
always depends on its
fund inflow (Cardon,
Post and Forster,
2017). Generally most
of the survivor
ventures has small
organizational
structure.
LO2
P3: Impact of Micro and Small Businesses
Currently in the growth of UK's economy there are micro and small businesses giving
great contribution. The reason behind this statement is, these micro and small businesses are
highly spread in each market segment and providing jobs to the many people. These are
generating huge employment opportunities for the people. In other words these micro and small
businesses are currently backbone for country's economy. Without these businesses the country
is not able to increase its GDP percentage. The UK is one of the richest countries in the world. In
which micro and small businesses played biggest role in current reputation of this country.
Micro Businesses
Those businesses are comes under UK's micro businesses which has less than 10
employees and gain €2 million turnover each year (Chen and Thompson, 2016). These
businesses are highly needed to register their particular business in the PAYE and VAT.
Small Businesses
Those businesses are comes under UK's small businesses which has less than 50
employees and gain €10 million turnover each year. Currently the government of UK is running
many policies for small business which are very supportive to them. By the support of
government these are able take loans from banks on minimum interest rate. There are small
businesses are also needed be to registered in PAYE and VAT.
Impact on the Economy
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Over 5.9 million businesses are currently running their operations in the United
Kingdom. In these businesses approx 5.82 million are micro and small businesses (with 0-9
employees) and rest are medium and large businesses. 99.3% are the small businesses in the all
businesses of the United Kingdom and still rising year by year.
Small businesses are provided 13.2 million jobs to the people and gained £1.5 trillion
turnover in the last year. This contribution of micro and small businesses is too good for the
UK's economy. Year by year small businesses are opening in this country and presenting many
employment opportunities for the people. These businesses are provided jobs to those people too
which are comes from outside UK.
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Illustration 1: UK's private sector businesses (2000 to 2019)
(Source: BUSINESS POPULATION ESTIMATES FOR THE UK AND THE
REGIONS, 2019)

Employment which these businesses are provided is very favourable for the growth of the
UK's economy. Most of these small ans micro businesses trying to expand their business
different market segments of the United Kingdom (Brandt and Svendsen, 2016). These steps of
the small businesses will also give high contribution in the country's economic conditions.
P4: Importance of Small Businesses
There are small businesses very important for the growth of country's social economy.
Without these businesses the UK is not able to improve condition of their social economy.
Social Economy
Social economy representing the high diversity of businesses, organizations and
enterprises. In the social economy there are both factors working together, the social and the
economic. In which social behaviour give their input in economic conditions of the country.
Importance of Small Businesses
 Generating Employment Opportunities: Small businesses in this country are
generating large employment opportunities for the people. There are large number of
population only depends on these businesses for their job needs. It is great contribution of
small businesses to the social economy of the United Kingdom.
 Innovation: Many of the small businesses are innovating new products and services for
the people on daily basis. In which this is too important to the country in export these
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Illustration 2: Employment and Turnover of the UK's Businesses
(Source: BUSINESS POPULATION ESTIMATES FOR THE UK AND THE REGIONS,
2019)

innovative products and services in other countries (Greblikaite, Sroka and Gerulaitiene,
2016). These are very helpful in increasing foreign exchange of the United Kingdom.
 Local Improvement: These are also very important in improve local areas of the
country. Most of small businesses are taking many actions for improve their areas by
contributing in social welfare programmes.
Role of Small Businesses
Small businesses are also giving great contribution in the development of local, regional,
national and international economy. There are specifically described small businesses impact on
these all economy terms;
Local: Small businesses are providing great facilities to the people which leave outside of UK's
main cities. These are providing jobs, products, services, good health etc. in the local areas of the
country, like; small villages and towns.
Regional: These businesses are increasing growth of the different areas of the country by
opening the new markets. In which this is too good for the regional development within UK.
National: Estimated turnover of the small businesses is £2.2 trillion which is 52% of all the
businesses (Chell, 2017). It is providing great employment opportunities. These are the main
source of earning for people in the United Kingdom. In country's GDP also these are giving extra
ordinary contribution. In which this role is helpful in the social economy growth of the UK.
International: Many of the small businesses are innovating exclusive range of products and
services. In which the country is able to sale products and services in the international market.
This role is helpful in rise UK's currency value in the global market.
These all are the importances and roles of the small businesses giving effective
contribution in the growth of UK's social economy.
LO3
P5: Characteristic and Skills of Successful Entrepreneurs
There are various qualities and skills are needed in a person to become a successful
entrepreneur. There are some characteristics and skills of the Tom Mercer are mentioned below
which makes them a successful entrepreneur in the UK.
CHARACTERISTICS
Creative: Tom Mercer is too creative in his personal life. They believe in provide some effective
products to the customer. From 2006 to date when his company MOMA was born, he is working
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on improve their products by design wise, quality wise and packing wise. In this improvement
process his creativity is very helpful for them.
Punctual: He is too much punctual as well. He is always trying to complete his each task on
time. In case if any person want to become a successful entrepreneur, then it highly need to
improve this characteristic in personal life.
Confident: Confidence level of Tom Mercer is very effective, because when he launches new
product range for the customer. In this time he become full confident about his new product
range (Sujan, 2015). He said if any company provide quality products in the market, then
customers automatically purchase that products.
SKILLS
Decision-Making Skills: These skills of the Tom Mercer is inspiration to the new entrepreneurs.
Most of his decisions are become productive when he implements them in actions. Each
entrepreneur need to develop these skills to become very successful entrepreneur in the market.
Communication Skills: Communication skills of the Tom Mercer are also good. He believes in
listen people. His employees are very satisfied with his these skills, because he gives full value to
their employees by interacting with them. Employees also put their full efforts in the operations
of MOMA, because they feel valued by their boss Tom Mercer.
Finance Management Skills: Tom Mercer was completely developed his finance management
skills. The finance is very big thing for the new entrepreneur. In which each entrepreneur need to
develop finance management skills for perfectly manage all cash inflows and outflows with
enterprise.
P6: Entrepreneurial Motivation and Mindset
There are all entrepreneurs comes from the different background. So, all has different
experiences and memories. In which they papered their motivation and mindset on the basis of
their experiences. Family background also put high impact on the current situations of the
entrepreneur. Suppose an entrepreneur comes from that family who's all family members are
running different businesses. In this case here is opportunity to the entrepreneur to learn some
new things from their family members. Self-motivation is also big factor behind entrepreneur's
success. To become a successful entrepreneur a person need to motivate from internally without
external sources. That entrepreneur will gain high success then other entrepreneurs who always
focuses on self-work (Johansson, 2015). The entrepreneur need to avoid such all negative
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elements which decrease their performance. Choices of idol is also playing good role in the
success of entrepreneur. A person need to set an idol in personal life to gain large inspiration to
grow.
There are many sources available in the market which helpful in improve personal and
professional life. In which an entrepreneur need to use these source in daily life for increase self
performance in the entrepreneurship. There are huge market knowledge also necessary for a
person to become a successful entrepreneur. An entrepreneur need to set their mindset to achieve
target in decided time period. Interest factor also playing great role in the successful
entrepreneurship. Suppose a person is highly like to do things related to business. In this case this
like aspect is his interest to do such things. So, this interest is helping to the entrepreneur in
achieve success in entrepreneurship. Currently many motivational seminars are conducting in
different locations. In which entrepreneur need to attend those seminars to become more
motivate in entrepreneurial activities. There are some entrepreneurial skills are also a person
need to improve in personal life to become a successful entrepreneur. High personality is also
important which it needs to develop for put effective impression on people. There are various
personality development centres are opened in different areas. In which it also needs to join them
for own personality development. It needs clear their mindset about 'what it wants to achieve',
'what its final goal' etc. With the support of these all aspects a person is able to achieve high
success in their entrepreneurship career.
LO4
P7: Hinder or Foster Entrepreneurship
Entrepreneurial characteristics and influence of personal backgrounds along with the
experience have high effect on the way their enterprise will lead and how they will succeed in
the competitive business environment. There is direct link between entrepreneurial
characteristics, the influence of personal backgrounds along with their experience in building
competitive enterprise by giving an edge advantage. High leadership skills and the ability to take
strong business development steps enable entrepreneurs to build long term growth and successful
enterprises (Estrin and et.al., 2019). A strong background with large level of experience in
management of organizations foster the growth of enterprise enabling company to establish long
term goodwill position among consumers and world on global platform. Whereas any negative
experience or lack in reaching the performance targets in previous company can hinder the
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present growth performance of company. Entrepreneurs whose experience and hardships in
starting business with generation of funds and objectifying the clarity in products motivates
entrepreneurs to stand apart from other business managers and create successful enterprises.
 Elizabeth Gooch and EG solutions- Elizabeth Gooch is known as one of the most
innovative operators of business with deep financial vision and risk taking abilities
essential for successful entrepreneurs. The charismatic style of working and the high
experience in handling successful business has helped in raising the business to new
heights. Strong entrepreneurial characteristics have enabled her to raise the business to
heights, strong sustainability and long term profit goals with customer satisfaction goal
which has made her a successful entrepreneur. EG solutions is selling operational
management software to generate improvements in operational performance and
efficiency on fixed time basis scale. Her strengths and the will to never give up on her
ideas has lead to success of enterprise, focusing on the customer preferences and
organizing proper functionality of principles at company has enabled to be successful in
volatile business environment.
 Tom Mercer and MOMO foods- Tom Mercer is one of the most successful
entrepreneur whose vision and the passion to bring an idea into fruitful successful
business has enabled the success of MOMO foods. His objectivity to run the successful
enterprise by following strong business ethics and management principles, has enabled
him to foster the success of business (Konon and Kritikos, 2019). The entrepreneur has
worked on various key areas with fundamental focus on building strong sustainability in
the growth of enterprise with clear objectivity towards achieving the customer
satisfaction products and services. Initial funding and the experience of hard work during
growing up helped the entrepreneur to generate ideas in constructive format and build
business of serving healthy breakfasts, and food services to customers who look up to
adopting healthy lifestyle. His ideas and vision to create difference in society has enabled
to foster entrepreneurship The hardships of financial crisis in constructing a successful
business model motivated him to work harder, with courage and dedication to achieve the
company goals in accordance with the personal growth accomplishments.
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CONCLUSION
It can be concluded that there are various entrepreneurial ventures exiting in the United
Kingdom. These all ventures are completely relating with typology of entrepreneurship. There
are small businesses are giving great contribution in the growth of UK's social economy. These
provided huge employment opportunities to the people. This is the biggest contribution of small
businesses in the country. There are many skills and characteristics a person need to develop in
personal life to become a successful entrepreneur in the market. Self-motivation is the biggest
factor which motivate a person to start a new enterprise. The background and experience are
highly influencing the entrepreneurship in both term, positively and negatively. Self-motivation
is the best source than external sources, because self-motivation gives high success in
entrepreneurship.
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REFERENCES
Books and Journals
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Cardon, M. S., Post, C. and Forster, W. R., 2017. Team entrepreneurial passion: Its emergence
and influence in new venture teams. Academy of Management Review. 42(2). pp.283-
305.
Chell, E., 2017. Introduction and overview to the entrepreneur and entrepreneurial process.
In Tourism and entrepreneurship. (pp. 54-72). Routledge.
Chen, L. W. and Thompson, P., 2016. Skill balance and entrepreneurship evidence from online
career histories. Entrepreneurship Theory and Practice. 40(2). pp.289-305.
Cook, M., 2016. Essays on occupational choice and entrepreneurial ventures.
Estrin S., and et.al., 2019. Entrepreneurship in emerging markets.The Oxford Handbook of
Management in Emerging Markets.pp.457-494.
Giudici, G., 2016. Equity crowdfunding of an entrepreneurial activity. In University evolution,
entrepreneurial activity and regional competitivenes.(pp. 415-425). Springer, Cham.
Greblikaite, J., Sroka, W. and Gerulaitiene, N., 2016. Involving young people in Polish and
Lithuanian social enterprises by fostering entrepreneurial skills and abilities as
entrepreneurial opportunity at university. Entrepreneurial Business and Economics
Review. 4(3). p.131.
Gregg, D. and Parthasarathy, M., 2017. Factors affecting the long-term survival of eBay
ventures: a longitudinal study. Small Business Economics.49(2). pp.405-419.
Konon A., and Kritikos, A. S., 2019. Prediction based on entrepreneurship-prone personality
profiles: sometimes worse than the toss of a coin. Small Business Economics.
53(1).pp.1-20.
Krueger, N. F., 2017. Entrepreneurial intentions are dead: Long live entrepreneurial intentions.
In Revisiting the entrepreneurial mind.(pp. 13-34). Springer, Cham.
Leitch, C. M. and Volery, T., 2017. Entrepreneurial leadership: Insights and
directions. International Small Business Journal.35(2). pp.147-156.
Leković, B. and Marić, S., 2017. Internationalization of entrepreneurial ventures in transition
countries. Industrija.45(4). pp.45-63.
Zeller, S., 2018. Communication strategies of new entrepreneurial ventures towards different
funding sources and their ethical and strategical implications: a qualitative analysis.
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