Entrepreneurship and Small Business Management

This document discusses the concept of entrepreneurship and its importance in small business management. It explores the similarities and differences between entrepreneurial ventures, assesses the impact of small businesses on the economy, and determines the characteristic traits and skills of successful entrepreneurs. The document also examines how background and experience can hinder or foster entrepreneurship.

Entrepreneurshi
p & Small
Business
Management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1.................................................................................................................................................3
P2: Explore the similarities and differences between entrepreneurial ventures..........................6
P3. Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy..............................................................................................8
P4. Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................9
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers..........................................................................................10
P6. Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset................................................................................................................................11
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................12
CONCLUSION..............................................................................................................................13

INTRODUCTION
Entrepreneurship refers to the set of activities which are undertaken by an individual or group of
individuals for setting up a business with the motive to earn profit from it (Barbosa, Castañeda-
Ayarza and Ferreira, 2020). The individual for Proprietor who is responsible to take care of the
activities in the organization is known as entrepreneur. The entrepreneur is responsible for
earning and losses earned or incurred in the business as it is the contribution of business towards
the capital invested by the entrepreneurs. There are several kinds of Ventures which can be
classified into several categories these Ventures are collectively known as entrepreneurial
Ventures. This report contains various classification of venture with the difference and similarity
among various entrepreneurial Ventures. Entrepreneurship mainly focused on maintenance of
small business by setting efforts and capabilities towards the development of business. In order
to complete this report it also explains regarding the activity and function undertaken by small
level business searches easy solution PLC and MOMA Foods Company. It also contains effects
of small and micro companies on the economy of the country and its important in entrepreneur
traits and skills that are needed to direct business in effective and efficient manner. These skills
and traits can be done by identifying the attribute and personality of businessman. They are
affected by background of the entrepreneur and concentrate on several factors which influence
economy and Society through various kinds of activities and operational functions.
MAIN BODY
P1
Entrepreneurship: It is a group of activities which are required to direct business operations
and stars in order to achieve opportunities of market. Entrepreneur develops and creates efficient
opportunities and possibilities in a business in order to earn more and more profit from the
business organization. The capabilities of entrepreneurship enhance improve and direct a
business in a very effective manner. As they introduce new type of Technology and innovation in
their products they offer those technologies and innovation to the society and community they
are operating in. Entrepreneurs are responsible for several operational Strategies and functions
such as controlling planning arranging funds for operations improvement for enhancement of

strategies and many more full stop a good entrepreneurship is a backbone for the growth and
success of an organization (Botha and Steyn, 2020).
Several kinds of entrepreneurship
Serial entrepreneurs: Serial entrepreneurs are those entrepreneurs which are always ready to
establish new and innovative ideas in an organization. They have a capability to boost new and
creative ideas and opinions in order to convert them in practical life. These innovative ideas give
the entrepreneurs and opportunity to start or develop new business or venture in order to expand
their business full stop it is because of their capabilities and thought process that they are able to
become a great entrepreneur. Their innovative mind set and thought process help the venture to
settle effectively and get maximum positive outcomes from the established Ventures
(Demircioglu and Chowdhury, 2020).
Intrapreneurs: These are the entrepreneurs who act or behave like entrepreneur bye by giving
their innovative and creative opinion in an enterprise. They are responsible to define position of a
person in a company and have so much of qualities and abilities to work in uncertain or Complex
situation in the dynamic business environment. They use different kind of techniques and styles
in order to develop and motivate employees of the organization.
Owner-Managers: Owner and managers of a company or the person who are responsible to
manage Complex situations which are connected with planning legal activities different kind of
policies to maintain or tackle problems which are connected to operations and many more.
Directors of the company are the one who manage and organize resources in order to complete a
project in a predetermined time.
Various entrepreneurial ventures
There are various Types of entrepreneurship which can be categorized on the basis of their
operations and functions. Some of them are mentioned below:
Survival venture: Survival venture is mainly focused on ownership in the operations. Survival
venture should meet the business requirements which will lead to the financial satisfaction of the
company (Huang, Liu and Li, 2020) These type of venture regularly change their functionality to
grow in the market and to stay in the market they minimize the value of their products.

Sometimes they reduce the quality as well as the quantity of their products. Few examples shift
their working in UK Amazon seller and some more. They shift their business and productivity to
small scale and make the resources available to meet the requirements of their daily work.
Lifestyle venture: This type of entrepreneurial venture is focused on running their company on
the basis of habit of living and their view on their individual experience. These types of style and
habit of livelihood can be used to achieve their insight and advice of their disciples. The whole
operations of the company or based on their habit of livelihood and their views and expressions.
Growth venture: Growth venture is a type of scheme which mainly focuses on long term
insights and advice and shift their project and activity to tolerate in upcoming time for gaining
understanding to rise in the marketplace and broaden their industry. In this type of entrepreneur
real Ventures the entrepreneurs generally initiate their business by contributing Hai capital
Innovation and creative strategy for the business full stop it helps them to achieve benefits which
are related to UU competitive rivalry and large market share full stop in order to take an example
for growth venture Tesco is the best example as it became the third largest retail company of the
world in terms of revenue (Huezo-Ponce, Fernández-Pérez and Rodríguez-Ariza, 2020).
Relation with entrepreneurial typology
Small business entrepreneurship: Small business entrepreneurship refers to those
business which initiate their business with low capital investment and apply internal resources to
start the business. These businesses are generally offer consumer products or basic products in
order to survive in the Marketplace. This kind of business organization the proprietor or their
relatives work in the organization. Reliability in this the kind of business is unlimited and
completely of the proprietor who is liable to open that business.
Scalable start-up enterprise: This type of business are the business which works in
extreme innovate as well as creative way in order to provide something creative to the society. In
this type of Enterprises various techniques and technologies which can be accessible by the
enterprise are utilized in order to provide positive outcome of production. In order to consider
good examples of scalable startup Enterprises Facebook com Instagram Twitter can be the best
example that shows a good satisfaction to their consumer's which provide them growth and
success (Isaev, 2020).

Large company enterprise: Large organization refers to the organization which have
more than 1000 employees in order to run their business operations. They generally operate with
huge varieties of products with the aim to achieve and sustain for a longer period of time in the
market. These businesses are started like small businesses and with their good aim and operating
system they have achieved a great success and become a large organizations. In order to become
a large organization the theory the following is to make the priority to the customer and they
always prefer to have feedback of their customer so that they can improve their operations in
order to provide maximum customer satisfaction. Maximum customer satisfaction help them to
satisfy their customers in police manner which helps them to attain their objectives of becoming
a large organization (Jiménez-Jiménez, Sanz-Valle and Perez-Caballero, 2020). Large
organization required large capital to be invested as they include lots of operations and
sometimes in order to provide quality resource to their customers they provide customized
products which also required huge amount of investment. Tesco, Sainsbury's and Unilever can be
the best example to be considered as large organization enterprise.
Social enterprise: Social Enterprises are the Enterprises which work for the social
welfare and offer services which are related to Welfare of the society. These Enterprises are
established with the main motive of social welfare and follow the activities which helps
individuals of the society in order to make their life better. Social Enterprises can be of various
types with respect of their aims and objectives like some established to provide more and more
and more employment in the society some to provide basic services to the individuals who are
not getting them. In this kind of Enterprises they collect money various sources in order to to
provide their services. The money or capital collected in this type of Enterprises are there from
agencies donations aur political authorities. In order to take an example UNICEF can be
considered as a best example of social welfare Enterprise (Jo’rayevich, Baxritdinovich and
Bulturbayevich, 2020).
Above given are the main and basic type of entrepreneurial Ventures which are given
with their aims and objectives in order to provide various products and services to the society.
P2:
Similarities:

Survival venture: The main motive of this venture is to survive in the market and run
their business for long period of time. In order to survive in the market there sure suitable use of
available resources (Mazzarol and Reboud, 2020).
Lifestyle venture: The main target of lifestyle venture is to manage manner of Living in
an effective manner in order to use the satisfaction of more and more profits in the organization.
Growth venture: In growth venture as the name signifies it is the idea which concentrate
on the aspect of growth in a company and focus on expansion activities in the organization. This
type of organization always believe to invest in long term investment in order to achieve growth
in the venture.
Difference:
Survival venture:
 The source of funding in this kind of ventures are generally on resources or resources
taken from savings, friends, family, etc.
 The complex decision making are generally made by owner of the company and no
workers are involved in the major decision making of the company. There is no
complexity in the business as all the decisions are are taken by higher authority only and
no workers are involved in it.
Lifestyle venture:
 In case of lifestyle Ventures they are established to manage or handle lifestyle and they
find their business from grant of banks loans or from other Financial Institutions and pay
a fixed rate of interest on these loans.
 In this kind of ventures the decision making process includes extreme level of activities
or operations which is time taking process and they are then bye all the authorities that is
higher authority to lower authority. In order to run the business successfully Fossil stock
the decision making is very complex in these kind of Ventures as they involve so many
authorities and chain to be followed by employees (Rascão, 2020).
Growth venture:

 As the main motive of growth ventures is to expand the business it involves extreme level
of finance in order to run their activities. In order to arrange this Finance they need to
take loan from higher institutions.
 In this type of organization all the principles, norms, strategies or policies have been
formulated by higher authorities and have centralized decision making process.
P3
Classification among small business and micro business.
Small and micro organizations are very essential for any economy as they help and economy to
develop in various ways. Even large organization became that much large by establishing a small
and micro organization (Ratten and Jones, 2020). There are several ways in which these
Enterprises are beneficial for the economy which are explained below in brief:
Figure: Number of employees in an enterprise in several years
Contribution towards GDP: Above provided graph represent the growth of GDP in United
Kingdom by showing its contribution to the business of micro and small Enterprises. It helps to
promote and support improvement it and evolution towards the community. Small and micro
organization offers products and services to the individuals in accordance with their requirement
which put a positive effect on the GDP of a country. It enhance the satisfaction of customer
which increases the growth of company which effects the GDP in positive sense (Sharafizad and

Brown, 2020). The steps taken by this small and micro organization to expand or diversify their
business is a great step towards the improvement of the economy.
Figure: Contribution of various enterprise to the economy of a country.
Employment: Establishment of small and micro organization in a society increase Employment
opportunity in that area. The graph given above shows the growth and development of a country
from various types of organization. According to the graph it has been observed that most of the
growth of an economy or GDP of a country is depend upon the small and micro scale
organization. It is because it involves the saving of an entrepreneur into a productive manner and
increase employment in the country (Sinapi, 2020). Establishment of one micro small
organization provides employment to one or two employees in the country and sometimes it can
be more than that. The individual in a country will not sit ideal and involve in the activity in the
small scale industries which provides productivity in them and create talent for the company as
well as economy. It enhance the individuals in a positive manner and provide them opportunity
to show their talent.
P4.
Social economy: Social economy refers to the group of organizations which provide several
value for norms social and culture during direction of their functions and operations. They also
provide so much of benefits to the improvement of society and their enhancement. In this type of

economy There are several companies which engage in cooperative mutual associations or
Cooperative authorities which ensures about the privacy and policy of a person.
Significance of small organization for growth of social economy
Employment opportunities: Small level organizations are very essential for an economy as they
provide employment or job for the required candidates. It will help an economy to grow and
provide their contribution towards the GDP of a nation. Large organization employees are those
persons who generally high experience in their field as they cannot take risk of getting failed in
that field. Small organization has so many of individual and make them learn the work they need
to do in the organization which enhance their capabilities and develop them by providing
experience of that field (Williams and Bezeredi, 2020). In short they create more and more
employment opportunities for the individuals in the society.
Innovation: Innovation is very essential for any Enterprise to grow in the market. In the same
way innovation is also essential for growth of an economy. When a new venture has been
established in a society or in a country they came up with new innovative technique or process in
order to provide quality product to the society. They are generally small level companies who
offers their creative products and services to provide something unique to the audience.
Social purpose: In order to survive in the society they are operating in the organisation needs to
consider the requirements of the society and do some task which are for the purpose of social
welfare. Many of the task taken by small and micro Enterprises are and the benefit of the society
and accomplish the social purpose.
P5:
Characteristic traits: Characteristic traits can be defined as a term which explains the
capabilities and talent of an individual which make them different from others. Every individual
is different in their own sense and have an ability to do something that is out of the box. This
talent individual help them to be confident for their next step for the future and professional
growth.

Characteristic skills: Skilled labor can be explained as an individual who have courteous and
free hundred behavior for their work. Skills can be of various types and defines the
characteristics of an individual.
Difference between characteristics traits and characteristic skills:
Basis
Traits
skills
Elizabeth Gooch
 Elizabeth Gooch is a
person with innovative
mindset and develop
innovative software for
their business.
 She always believes in
taking reviews on her
strategies to motivate
their employees.
 Elizabeth Gooch has
good motivation and
leadership skills with
excellent
communication.
Tom Mercer
 Tom mercer is a person
who focus on the
customer satisfaction
by providing them
material according to
their needs of their
daily life.
 He is the leader who
believes in customer
satisfaction and take
their feedbacks for
further improvement.
 Tom Mercer is a calm,
understanding and an
intelligent leader who
can lead the condition
according to the
requirements.
Distinguish between an entrepreneur and other managers
Entrepreneur Managers
Entrepreneur is liable to handle operational
functions of an organization. He is liable to
A manager always focuses on potential
functioning of their particular field in order to

take risk in the decision making of an
organization and always concentrate on
achieving expansion and innovation in an
organization to make the business more
effective (Wraae and Walmsley, 2020).
provide outcome of the work. They have
several applications and worked as an
employee in the organization and not liable for
any risk associated with the business.
P6:
Entrepreneurial motivation and mind-set: Entrepreneur motivation and mindset is very
essential to increase service capabilities and skills of an entrepreneur. These skills and
capabilities develop positive mind set of an individual towards their task and their work.
Examples of motivational drivers include:
Independence and flexibility: In order to operate in effective manner an entrepreneur required a
freedom to operate. Pressure on any individual effects the effective beaty of an entrepreneur
because flexibility is so much required in order to increase the abilities of a person.
Power and control: In Order to run of business in effective manner it is essential to have a
power and control in hands of an individual. There are several elements which bounds these
control and power but a freedom in power and control to a person makes them stronger and
confidence to perform their duties as an entrepreneur.
Achievement: When a person achieves their aims and objectives, it increase motivation in them
to perform well in future. That is the reason achievement motivates an entrepreneur to work in
effective manner in their next projects.
Creation of wealth: In order to become stronger in the market and entrepreneur is always ready
to take risk manage the situation very positively. These risk taking abilities of an entrepreneur or
create wealth for them which motivates them to perform well in their duties (Wraae and
Walmsley, 2020).

From the above points of motivation it has been evaluated that these points helps a person
to motivate themselves to become a great entrepreneur and have them to develop and being
stronger to manage several situations of dynamic business environment.
P7
Poverty – In order to become an entrepreneur the most important factor which motivates
an individual is poverty. Financial stress in life of an individual divide them dedication to earn
more and provide a good life to their families. This dedication for motivation help them to have
new as well as innovative ideas for starting an organization these innovative ideas and skills help
them to became a good entrepreneur for a company. This will assist the individual to Grab the
opportunity to become an entrepreneur for their betterment.
Unemployment - : Unemployment is also a great reason for the the increasing opportunity for
business persons to became an entrepreneur. Unemployment creates a desperateness in
individual to earn more and more money which help them to have innovative ideas to start their
own business. This new start of small enterprise will help the the individual to become an
entrepreneur full stop in this manner unemployment it also worked as a factor to Foster
entrepreneurship (Wraae and Walmsley, 2020).
Culture – In some cases culture also provide several ideas to start a new venture and become an
entrepreneur. Different culture have different ideas to on more and more money e through
various and innovative ideas.
Family Wealth - Family wealth refers to the business which is shifted from the family member
also helps an individual to became an entrepreneur. The business which is shifted from family
member needs to be taken care by an individual which creates entrepreneur capabilities in an
individual.
School Dropouts – In some cases when an individual is not able to perform well in the school it
motivates them to star of business to survive in the real world. This motivation of starting a new
business with some innovative ideas help them to became a good entrepreneur. It can be
understand from example of a famous person Bill Gates foot drop is education at college level
and now became a great founder of Microsoft company. The reason behind that way Bill Gates

became such a great entrepreneur is that he grab as much as knowledge and skills he can from
various sources and was never interested in 9 to 6 job.
Hence, it can be said that all the factors are the factors which encourage entrepreneurship
in an individual. An entrepreneur is not an entrepreneur by birth, skills and knowledge can be
grabbed by an individual to became a great entrepreneur.
CONCLUSION
Above description of the report helps to conclude that small and micro organizations
helps a lot to an economy of a country to grow. Entrepreneurs are the individuals who are
responsible to build these small and micro organizations. They provide a good infrastructure and
growth to the GDP of a country and increase engagement of employees. This report also contains
several skills and traits which are required in an individual to become a great entrepreneur of a
country.

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