Entrepreneurship and Small Business Management

This report covers the various kinds of entrepreneurial ventures and their relationship with the entrepreneurship typology. It also covers the differences and similarities between various types of entrepreneurial ventures. It explores the characteristics, skills, and traits of successful entrepreneurs and the importance of small business for the growth of the social economy. Additionally, it discusses entrepreneurial ideas and the international aspects of entrepreneurship.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
LO1..................................................................................................................................................1
Entrepreneurship, Entrepreneurial activity and enterprise definition.........................................1
Difference between entrepreneurs, owner managers and serial entrepreneurs...........................1
Typology of Entrepreneurship....................................................................................................2
Social enterprise..........................................................................................................................3
LO2..................................................................................................................................................3
Entrepreneurial Ideas..................................................................................................................3
The significance and role of small firms.....................................................................................5
International aspects of Entrepreneurship...................................................................................8
LO3..................................................................................................................................................9
Characteristics, skills and traits of entrepreneurs........................................................................9
Entrepreneurial personality aspects ..........................................................................................11
LO4................................................................................................................................................12
Background and experience of entrepreneurs...........................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................13

INTRODUCTION
Entrepreneurship is defined as a procedure to design, launch and run a new business
enterprise that is often a small scale business. Those people who create such businesses are
known as entrepreneurs. This report covers the various kinds of entrepreneurial ventures and
their relationship with the entrepreneurship typology. It also covers the differences and
similarities between various types of entrepreneurial ventures (He, Lu and Qian, 2019). It also
covers interpretation and assession of relevant statistics and data for illustrating the way in which
micro and small business has impact upon the economy. Further it includes the importance of
small business and business start-ups for the growth of social economy. It also includes the
determination of characteristics, skills, and traits of successful entrepreneurs which are different
from business managers. Aspects of personality of entrepreneurs that helps in reflecting
entrepreneurial mindset and motivation are also covered in this report. At the end, this report
covers experience and background that helps in hindering and fostering a relationship.
LO1
Entrepreneurship, Entrepreneurial activity and enterprise definition
Entrepreneurship is defined as an activity to set up a business or businesses, which has
been taken upon financial risks for the purpose to attain high amount of profit. It is defined as a
process of launching, running and designing a complete new business that is basically a small
business at initial level.
Entrepreneurial activity is an enterprise human action that is used in pursuing the value
generation, through creating and expanding economic activity by exploiting and identifying new
processes, markets or products (Kunaka and Moos, 2019).
An enterprise is determined as an entity which comprises of multiple people such as an
association is institution which has a basic and specific purpose.
Difference between entrepreneurs, owner managers and serial entrepreneurs
Entrepreneurs, owner- managers and serial entrepreneur are different from each other in
following aspects-
Serial entrepreneur Entrepreneur Owner- managers
A serial entrepreneur is an On the other hand, an On the contrary, managers
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entrepreneur who comes up
with new idea on constant
basis on constant basis.
entrepreneur comes up with
single idea for starting a
business and than play a
significant role in business day
to day functioning (Lyons,
Lyons and Jolley, 2019).
controls and manages the
business activities of an
organisation and manager is
not the owner of a business.
Typology of Entrepreneurship
Typology is defined as a group of people that are putted together on basis of some
basic common features and characteristics. These ventures are grouped in different categories
which are elaborated as follows-
Male Entrepreneurs – These entrepreneurs are basically risk takers and they enjoy
taking financial risks to achieve better results. They want to expand their businesses and they
focus more upon latest society trends and aims at latest innovation and technology. They are task
oriented and always deals with large construction and manufacturing business.
Female Entrepreneurs – These entrepreneurs are constructive and avoid high amount of
risk and therefore they deal in small businesses (McMullen, 2019). These are sensitive towards
the work they do and their workforce and due to this they maintain a healthy relationship with all
the stakeholders. Females are more responsible towards environment and society and therefore
they also fulfil the responsibility for society.
Micro, small and medium-sized organisations.
Basis Micro Small Medium
Roles Its basic role is in
generating
opportunities of
employment with
comparatively low
capital and investment
and also helps in
promoting equal
Small business
enterprises plays a
significant role in
economic development
and they offers a broad
range of options for
customers and serves
specialised needs as
Medium-size
enterprises plays a
significant role in
production,
contribution to
exports, facilitating
equal income
distribution and
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distribution of national
income.
compared to large
firms.
generation of
employment.
Characteristics This has very few
resources and it has
very low number of
employees.
It has limited resources
but more than micro
enterprises and has
limited number of
workers.
It has more amount of
resources and
employees as
compared to small and
micro enterprises.
Social enterprise
A social enterprise is defined as a business entity which applies various commercial
strategies for maximising the efforts in improving the financial, environmental and social well-
being which includes maximising social impact with alongside profit for external stakeholders
(Ndoro, Louw and Kanyangale, 2019). A social entrepreneur is an individual that starts up a
business entity for the purpose of solving various social issues and problems or effect any kind of
social change.
A social economy is determined as an mixed capitalist economy which is different from
public and private sectors. This kind of economy is based upon non-profit, cooperative and
voluntary instead of paid activity that are carried out within the communities which are across
international and national economies. The social economy has demonstrated for promoting
inclusive growth by generating jobs, strengthening employability and skills, developing local
economies and contribute to wide institutional and economic transformation. Successful
development of social economy has arisen from social ecosystem, enabling context of different
support provision elements and high amount of collaboration among actors, existing within
public, private sectors and within social economy (Runyan and Covin, 2019).
LO2
Entrepreneurial Ideas
An entrepreneurial idea is determined as a concept which is utilised for the purpose of
gaining financially which is basically focused upon a service or a product that is offered in
exchange of money. This idea is considered as a base of a business and the characteristics of an
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effective entrepreneurial ideas are innovative, creative and unique. An effective entrepreneurial
idea must fulfil these two requirements-
Creativity- An idea must be creative and unique in nature for the success of a business.
Creativity is an act to turn imaginative and new ideas into reality and it is characterised by ability
to perceive world in new manner in order to identify hidden patterns and to develop solutions
(Wynn and Jones, 2019).
Innovation- For a successful business, a business idea must be innovative in nature and
has creative thoughts and new imaginations. It is defined as an application towards a better
solution which meet new requirements.
Main sources to generate entrepreneurial and business ideas
Business idea is an innovative and creative though that can be brought up by entrepreneur
in a business (Top 10 sources of business ideas and opportunities for entrepreneurs, 2019).
There are various sources from which business ideas can be generated and they are-
Hobbies and Interests- A business idea can be generated from entrepreneur's hobbies or
interests. It is an activity which a person enjoy and love doing during leisure-time and most of
the entrepreneurs has founded great ideas of successful business while pursuing their hobbies
and interests. For instance Megan Duckett, a female entrepreneur and her hobby was sewing.
This entrepreneur has started her own business of Sew What? As her sewing gigs were bringing
more money than her job (Entrepreneurs Who Turned Hobbies into Million-Dollar Businesses,
2019)
Customer Surveys- The another way from which an entrepreneur or a businessman can
generate ideas for a new business is by conducting customer surveys. This is the starting business
point as on customer's needs and desires, the whole business is dependent. This is the reason
many businessman conduct surveys such as interviews, questionnaire, and so on to know the
customer's requirements and than produce a business idea in accordance.
Franchises- It is a situation in which a sole distribute of trademark of a specific product
gives rights to independent retailers for the purpose of distributing locally. This can be done for
retailers consistency for setting up operating processes. As a business idea, there are various
forms of franchising and the most common among them is that in which an image, established
business named and operating procedures are offered.
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Mass Media- This includes newspapers, television, radio, magazines and internet and
these are the most common and great sources of information, opportunities and ideas. The basic
way to become an entrepreneur is to have a look upon the commercials and ideas in these mass
media. By reading newspaper or magazine, a person can easily come across a business. Many
entrepreneurs has generated business ideas from these mass media.
Intellectual Property Rights
Intellectual Property Rights are the legal rights that helps in protecting inventions and
creations that result from any intellectual activity in scientific, industrial, artistic and literary
fields. The basic IPRs are copyrights, trade secrets, patents and marks. There are various ways in
which a business protects intellectual property rights. Some of these ways are-
Trademark- Trademark registration is considered as the straightforward and the most
common intellectual property protection type that helps in protecting the intellectual property
rights of a business (Albort-Morant and Ribeiro-Soriano, 2016). These are basically registered
for branding and logos and it distinguished the product or a business from other companies and
product, as far as nobody else had claimed it.
Copyrights- These are different from trademarks and patents on the basis that there is an
office which alone deals with copyright registration. Any kind of creative business such as
custom jewellery shop must be registered for a copyright for the designs that are used. Some
businesses also copyright the content of their website.
Patents- The law of intellectual property is complicated and various small business
owners seems to willing to risk their IP if it implies avoiding Trademark and Patent or Copyright
offices. It is very important to protect intellectual property for every business enterprise as it
helps in ensuring the livelihood of a business and make sure that it is protected in future as well.
The significance and role of small firms
A small business is determined as an independent operated and owned organisation that
has a limited revenue and size which is dependent upon the industry (Types of Small Businesses,
2019). There are various types of small business and all these businesses have contribution to the
national, regional economy. Some of these businesses are-
Retailers- Whether an independent store or a franchise, there are various ways in which
working capital can be used. For instance, a business can be upgraded with greatest and latest
merchandise.
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Medical offices- These are the other kind of small business which is very important part
to contribute to all kind of economies. These includes small medical stores, pharmacies, medical
office, and so on.
Restaurants- Another small businesses are restaurants which has high contribution to
local, national and regional economies.
Small scale businesses plays an important role in contributing to local, regional and
national economies. These enterprises are considered as the backbone of UK economy which
helps in driving growth and creating jobs (The importance of small businesses in the UK
economy, 2019). The role and significance of small businesses are-
Enhancing awareness- Small businesses helps to create and generate awareness towards
many financial fluctuations and issues within a firm's economy that assists the social economy
by satisfying and developing needs of society properly. In this manner, it also helps the business
enterprise to become familiar with innovative profits that are based upon demands and needs of
customers for affiliating favourable attitude that exist between each employee and person
mindset.
Development of local marketplace- Recently, it is analysed that due to Brexit,
organisation's profitability and productivity is influenced. However, small enterprises plays a
significant role through expansion of their business at different places and provide job
opportunities to local people (Fayolle and Gailly, 2015). It helps to improve local people
standard of living and in development of social economy.
Data and statistics of small scale firm in UK market
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The line graph which is above represents the SME gropwth in UK business in private
sector by employees number for last 18 years. In this, it is clearly shown that companies number
without any workers has been grown more than total business numbers in UK which is between
2000-2018.
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Small and medium size enterprises has a turnover of £2.0 trillion in the year 2018. This is
considered as a crucial figure itself. In UK, small businesses employ over 16.3 million people
that is accounted for 60% out of all private sector employment. The above bar graph represents
the average profit which is earned by SMEs with a turnover less than £25M for years 2014 to
2016. Thus, from this data shows the role and impact of SME in unemployment reduction. SME
helps in enhancing GDO and thus it has a significant role in economy growth. It generates
equality in economy by providing equal opportunities for growth to society's weaker sections and
also helps in improving living standard by generating employment opportunities (Ateljevic and
Page, 2017).
International aspects of Entrepreneurship
International entrepreneurship is a procedure in which an entrepreneur conduct a business
activity across the international boundary that consists licensing, exporting and so on. This kind
of entrepreneurship helps in expanding the domestic market which is beyond domestic
boundaries. It also helps the business in enhancing its profitability and sales and it also helps in
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reducing the cost of manufacturing by producing the same product quality with low cost of
manufacturing in another country (Julien, 2018). International Entrepreneurship not only
increases the opportunities for growth and survival but it also helps in motivating organisations
to face competition from international entrants which results in market growth and enhance the
global scale. Moreover it also helps in improving the company's goodwill by improving its
image.
LO3
Characteristics, skills and traits of entrepreneurs
The success of entrepreneurs are dependent upon their nature, characteristics, the skills
they possess and the traits they have. Here, two successful entrepreneurs are taken into account,
which are Elizabeth Gooch and Tom Mercer and their various characteristics, skills and traits are
analysed which helped them in achieving success in their business activities.
Elizabeth Gooch
Elizabeth Gooch is a CEO and founder of EG solutions, which is a small scale
organisation that sells software of operations management which helps clients in improving
operational efficiency and performance. This entrepreneur is recognised as the seventh
successful female entrepreneur in United Kingdom (Karadag, 2015).
Characteristics
Hard Worker- The basic character which can be seen in this entrepreneur is that
Elizabeth Gooch is a hard worker as in order to achieve this position, hard work is mandatory.
Without hard work, no entrepreneur can run their business for a long run. It differentiated this
entrepreneur from business managers as their role is limited to control and manage business
activity and not to work hard to achieve objectives.
Passionate- Another characteristic of this entrepreneur is that Elizabeth Gooch is
passionate about her business and activities related to it. On the other hand, business managers
are just manage business activity and do it as an official work and they lack passion in their work
(Oviatt and McDougall‐Covin, 2015).
Skills
Innovative Thinker- This entrepreneur is innovative thinker and always brings new ideas
in business. On the other hand, the business managers do not bring any new innovative idea for
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the success of a business instead they take ideas from leaders and entrepreneurs and than work
on those ideas.
Leadership Skills- Another skill which is possessed by this entrepreneur is leadership
skills as Elizabeth Gooch effectively guide and supervise employees in order to achieve business
goals and objectives. On the contrary, managers just give order to their subordinates to perform
a particular task and activity (Roig-Tierno, Alcazar and Ribeiro-Navarrete, 2015).
Traits
Confidence- The basic trait which must possessed by entrepreneurs is to have confidence
upon themselves as well as their business ideas. Elizabeth Gooch has confidence which helped
this entrepreneur in taking important business decisions for overall organisational growth. It
differentiate them from business managers as they take business decisions to run it smoothly but
entrepreneur take decision for its overall growth and success.
Disciplined- This entrepreneur is disciplined and all the business activities and operations
formulated in an effective manner. On the contrary, managers are often distracted from their
work and do not always work in disciplined manner (Siegel and Wright, 2015).
Tom Mercer
Tom Mercer is a founder of MOMA, which is an enterprise that provides healthy
breakfast all over the UK. He was a graduate from Cambridge University and management
consultant with Bain and Co. in London.
Characteristics
Risk Taker- This entrepreneur is risk taker and always takes risks in order to bring new
ideas in its business operations. On the contrary, managers do not take risks instead they avoid
risks.
Open minded- Another characteristic of this entrepreneur is that this entrepreneur is open
minded and always ready to bring new ideas and approaches in a business. On the contrary,
managers have limited work to do and they freak when any kind of changes are made.
Skills
Time management- The basic skill of this entrepreneur is that this entrepreneur
accomplish all tasks on time. On the contrary, managers is dependent upon their workers to do
their work on time.
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Strategic Thinking- This entrepreneur indulge in strategic thinking and always thinks
about future aspects of achieving business goals and objectives. On the contrary, managers
simply think about how to accomplish a particular task.
Traits
Competitiveness- This entrepreneur is competitive in nature and always try to develop
such products and services that helps in meeting the competition prevailing in market. On the
other hand, managers do not have competitiveness skills as their work is limited to order and
control their staff members (Volery and Mazzarol, 2015).
Determination- This entrepreneur is not afraid of failures instead this entrepreneur learn
from failures. On the contrary, managers are afraid of failures and try to eliminate them as far as
possible.
Entrepreneurial personality aspects
In order to monitor these two entrepreneur's personality, OCEAN model can be utilised
which is elaborated as follows-
Openness- It is a personality that is dynamic and consists of wide interest range in
different activities and actions. In Tom Mercer, this trait can be seen as this entrepreneur
concentrates on work and communicate in effective manner.
Conscientiousness- The people having this trait are goal oriented and are thoughtful
about their work. This trait can be seen in Elizabeth Gooch as this entrepreneur takes effective
decision.
Extraversion- These people are expensive emotionally and they like to share their ideas
with other. This trait can be seen in Tom Mercer as this person is extrovert and always
communicate about ideas with subordinates (Yan and Yan, 2016).
Agreeableness- These people are kind, sympatric and affectionate in nature nd they
easily understand their worker's ideas and views. This trait can be seen in Elizabeth Gooch as
this entrepreneur listen to employees.
Neuroticism- In this, an individual see positive sides of things and always encourage
employees to work in appropriate manner. This trait is seen in both these entrepreneurs as they
both motivate their employees towards achieving business goals.
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LO4
Background and experience of entrepreneurs
Basis Background Experience Its impact upon
fostering
entrepreneurship
Elizabeth Gooch This entrepreneur
belongs to a family
whose financial
condition was not
good. Her father
owned a small
business which do not
have much earning.
Gooch also completed
her study of
entrepreneurship and
started doing work for
HSBC bank at 18
years of age (He, Lu
and Qian, 2019).
Elizabeth's father was
an entrepreneur which
helped her choosing
her path as an
entrepreneur. Her
experience of working
in a bank also
developed her
analytical skills which
she has use in her
business.
Tom Mercer Tom Mercer belongs
to a strong family and
this entrepreneur since
childhood dream to
become a successful
businessman.
He worked hard in
chopping fruits and
mixing it with yoghurt
to develop a healthy
breakfast. After
preparing 200 bottles,
with these trestle table
which was set up
outside station, this
entrepreneur and his
friends were busy in
exchanging bottles for
email addresses. After
months, this
Since childhood, Tom
Mercer dreamed to
become a successful
entrepreneur and
always have new
business ideas in his
mind (Kunaka and
Moos, 2019). It foster
him to become a
successful
entrepreneur due to his
interest and passion.
Second thing, that
helped in fostering a
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entrepreneur received
positive feedbacks
from those people that
took sample and got
offer from a company
to pursue this idea
further.
successful
entrepreneurship is his
experience. His
experience consists of
a lot of hard work
which was done by
him in order to achieve
his goal.
CONCLUSION
From the above report, it has been concluded that entrepreneurship is an activity to set
up a business in order to achieve high margin of profit. There are various types of entrepreneurs
ventures such as micro, small and medium size ventures that generates high margin of revenue in
market. Small scale business is very important and has positive impact upon economic growth of
a country and it creates awareness and also develop the local marketplace. For a successful
business, an effective business idea must be there in order to formulate it effectively and it can be
generated from mass media, interest, hobbies, and so on. Further, it includes that there are certain
characteristics, traits and skills which are founded in entrepreneurs and which make them
different from business managers. Such as, entrepreneur is risk taker while managers take actions
to minimize risks.
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REFERENCES
Books and Journals
He, C., Lu, J. and Qian, H., 2019. Entrepreneurship in China. Small Business Economics. 52(3).
pp.563-572.
Kunaka, C. and Moos, M. N., 2019. Evaluating mentoring outcomes from the perspective of
entrepreneurs and small business owners. The Southern African Journal of
Entrepreneurship and Small Business Management. 11(1). pp.1-11.
Lyons, T. S., Lyons, J. S. and Jolley, J., 2019. The Readiness Inventory for Successful
Entrepreneurship (RISE). Economic Development in Higher Education. 2. pp.1-8.
McMullen, J. S., 2019. A wakeup call for the field of entrepreneurship and its
evaluators. Journal of Business Venturing. 34(3). pp.413-417.
Ndoro, T. T. R., Louw, L. and Kanyangale, M., 2019. Practices in operating a small business in a
host community: a social capital perspective of Chinese immigrant entrepreneurship
within the South African business context. International Journal of Entrepreneurship
and Small Business. 36(1-2). pp.148-163.
Runyan, R. C. and Covin, J. G., 2019. Small Business Orientation: A Construct
Proposal. Entrepreneurship Theory and Practice. 43(3). pp.529-552.
Wynn, M. and Jones, P., 2019. Context and entrepreneurship in Knowledge Transfer
Partnerships with small business enterprises. The International Journal of
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Albort-Morant, G. and Ribeiro-Soriano, D., 2016. A bibliometric analysis of international impact
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Ateljevic, J. and Page, S.J. eds., 2017. Tourism and entrepreneurship. Routledge.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of small business
management. 53(1). pp.75-93.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Karadag, H., 2015. Financial management challenges in small and medium-sized enterprises: A
strategic management approach. EMAJ: Emerging Markets Journal. 5(1). pp.26-40.
Oviatt, B. M. and McDougall‐Covin, P., 2015. International entrepreneurship. Wiley
Encyclopedia of Management. pp.1-3.
Roig-Tierno, N., Alcazar, J. and Ribeiro-Navarrete, S., 2015. Use of infrastructures to support
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Siegel, D. S. and Wright, M., 2015. Academic entrepreneurship: time for a rethink?. British
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Volery, T. and Mazzarol, T., 2015. The evolution of the small business and entrepreneurship
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Yan, J. and Yan, L., 2016. Individual entrepreneurship, collective entrepreneurship and
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Management Journal. 12(4). pp.1053-1077.
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Top 10 sources of business ideas and opportunities for entrepreneurs. 2019. [Online]. Available
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Entrepreneurs Who Turned Hobbies into Million-Dollar Businesses. 2019. [Online]. Available
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<https://www.credibly.com/business-loans/types-of-small-businesses/>.
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