Unit 9: Entrepreneurship & Small Business Management

4200 word

Entrepreneurship & Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Distinct types of entrepreneurial ventures and the way they relate to entrepreneurship
typology..................................................................................................................................3
P2: Similarities and differences between different entrepreneurial ventures.........................5
TASK 2............................................................................................................................................7
P3: Interpretation and assessment of relevant statistics and data to exemplify the way micro
and small organisations impact on the economy....................................................................7
P4: Significance of small businesses as well as business start-ups to social economy's growth 8
TASK 3............................................................................................................................................9
P5: Different skills and characteristic traits of successful entrepreneurs which differentiate
them from other business managers.......................................................................................9
P6: The way aspects of entrepreneurial personality show entrepreneurial mindset and
motivation.............................................................................................................................10
TASK 4..........................................................................................................................................12
P7: The way experience and background of entrepreneur can hinder or foster entrepreneurship
among them..........................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship is defined as a process of creating a business venture by taking risk with
the hope of earning high profits. In this, entrepreneurs focuses on developing a new venture with
innovative idea in order to yield large amount of profits and revenues. An entrepreneur always
search for developing something new and explores the opportunity which are available in market
by taking risk and investing money (Ács, Autio and Szerb, 2014). This report covers different
entrepreneur ventures along with their link to typologies. it also explores differences and
similarities between different entrepreneurial ventures along with the impact that micro and
small firms have upon economy. In addition to this, importance of startups and small businesses
in growth of social economy and different characteristics and traits posses by entrepreneurs
which makes them distinct from other business managers are discussed. At last, the way different
aspects of entrepreneurial personality reflects their motivation and mind set and the way
background and experience Foster entrepreneurship among entrepreneurs are discussed in this
report.
TASK 1
P1: Distinct types of entrepreneurial ventures and the way they relate to entrepreneurship
typology
An entrepreneur can be referred to as a person who is engaged in setup of a business, its
running and management so as to ensure that it attains growth and high profits in rapid course of
time. Besides this, entrepreneurship is stated as an activity which encompasses execution of
operations tasks within an entrepreneurial venture with the intent of attaining growth and
sustainability in due course of time. In addition to this, enterprise is identified to be a
comprehensive unit which is engaged in execution of business procedures through the integration
and application of a number of resources like tools, machineries, equipments, human resources,
funds, technologies and many more (Blackburn, Hart and Wainwright, 2013).
Typologies of ventures provide assistance in gaining comprehensibility of the relation
prevailing between a type of venture and their object. In this regard, it is identified that there are
primarily 4 typologies of ventures, namely, Male, Female, Social and Scalable. in this relation,
the different types of entrepreneurial ventures are discussed in a detailed manner as follows:-
Survival ventures:

These are the type of ventures which carry out business practices and activities with the
intent of earning high revenues as well as profitability. These ventures undergo the formal
process of registration and thus do not have a particular space to execute business operation.
These ventures exist within the confines of an economy with the sole motive of provision of
basic financial need. These ventures do not strive to reinvest the funds within the venture. This is
a type of venture which is driven by a need. Hereby, entrepreneurs are usually focussed upon
sustaining extensive rivalry prevailing at market place (Bridge and O'Neill, 2012).
Typology- Scalable typology belongs to the category of Survival ventures as they are
acknowledged to be having scalable scope. In this regard, it is identified that NHS is one of the
most renowned examples as the firm intends to ensure social welfare of society instead of
attaining high profit from market.
Lifestyle venture
This is a type of entrepreneurial venture which is acknowledged to be producing stable
income for its owner. It is supposed to be based upon an effective management approach
consisting of systematic business model. Further, it is identified that hereby entrepreneur
reinvests the sum of money earned into the venture so as to enhance the incomes with rapid
course of time. This is a venture that runs its business operations at single location and does not
look upon instant growth or expansion.
Typology- Lifestyle venture pertain to the category of Social typology. This enables a venture to
attain high amount of profits in future course of time by building upon its resources,
competencies and capabilities.
Managed Growth Venture
This is a type of venture which usually seeks to attain stable growth. It is acknowledged
to be following workable business model. These ventures regularly gain access into the market
place by introducing new products at due intervals of time (Ball, 2019). This provides assistance
in attainment of extensive growth and sustainability within market for a longer period of time.
By regularly reinvesting the funds into business, these ventures aim to gain high profits and
facilitate expansion in future course of time.
Typology- Managed growth venture go along with Scalable typology. Hereby, due emphasis is
paid upon the attainment of growth. One of the best examples of this type of venture is IDG.
Aggressive

These are the category of ventures which have innovation and technology capabilities to
disrupt the market with innovative products and services. Such type of venture is usually backed
upon by equity capital and strives to accomplish growth. This is a venture that seeks to establish
a good image of it in front of others (Bryson and Daniels, 2015).
Typology- This technology and innovation driven venture belongs to the category of Scalable
typology.
P2: Similarities and differences between different entrepreneurial ventures
Basis of
Differences
Survival Lifestyle Managed growth Aggressive
Annual growth
rate
Growth rate of
such ventures as
per daily business
operations is
nominal.
This type of
venture generally
intends to attain
lesser than 5% of
week or month
growth.
These are the
ventures which
consist of 10-15%
business growth
on an annual
basis in a time
span of 1 to 2
years.
These are the
venture which
have over 20%
growth in a time
span of 2 to 5
years.
Managerial focus These ventures
have wide array
of offerings and
thereby adopt a
Reactive
management
style.
These type of
ventures usually
emphasize upon
such management
approach which
takes into account
the working
model. Hereby,
Tactical
management is
put to use.
Strategic
management
approach is
adopted to attain
strategic growth.
These ventures
emphasize over
scalable
management, thus
it makes use of
strategic and
proactive
management.

Basis of
Differences
Survival Lifestyle Managed growth Aggressive
Entrepreneur
Orientation
Very low
Entrepreneur
Orientation
pertains to this
category of
entrepreneurial
venture.
Low Entrepreneur
Orientation exists
herein.
Moderate
Entrepreneur
Orientation
prevails hereby.
High
Entrepreneur
Orientation is
present here.
Technology
investment
No Investment is
required to be
done in new
technologies
Limited
Investment is
required within
this type of
entrepreneurial
venture
Moderate
investment is
required to be
made in
technologies
High investment
is necessary to be
made within the
technology to gain
the attention of
large number of
people in rapid
course of time
Funding source Self finance Borrowings from
family, friends
and bank
Invitation for
public funding
Funding done by
banks, private
investor and
public marketer
Organization
structure
No fixed structure
exists in this type
of venture
Simple
organizational
structure prevails
within this
venture
Functional as well
as centralised
structure exists
within this type of
entrepreneurial
venture
Mix
organisational
structure exists
hereby within this
type of
entrepreneurial
venture
Similarities among different entrepreneurial ventures

Survival and Lifestyle venture have the same source to procure funds which is own
investment in the form of savings or borrowing from peer, family or any other acquaintance
(Burrows, 2015). Further, it is analysed that all the various types of entrepreneurial ventures have
the common aim of creation of new ideas and facilitating the introduction of innovation with a
view to attain growth and sustain in market place for a longer period of time as compared to rival
firms.
Aggressive entrepreneurial and Managed growth businesses mainly perform innovation
on continuous basis so as to derive business success. In the similar way, the strategy associated
with managed growth of venture might be anticipated to strengthen the identity related to steady
and constant growth (Erasmus, Strydom and Rudansky-Kloppers, 2016). Generally, all the
business organisations intent to accomplish the main goals, objectives of company and earn
higher profitability demur the social organisation which emphasize more on the welfare of
society.
TASK 2
P3: Interpretation and assessment of relevant statistics and data to exemplify the way micro and
small organisations impact on the economy
Micro businesses are referred as small companies which are managed and controlled by
private individuals with the aim of earning profits and ensure their survival. Small businesses are
defined as the companies which are limited in size and their revenues are rely on employees and
industry. As per the SBA's reporting, small businesses are those which has less than 250
employees. There are around 99.9% small businesses operating in United Kingdom. Below
provided statistics assists in determining influence of micro and small businesses on economy
(Ferreira, Loiola and Gondim, 2017). There were around 5.9 million small and medium
enterprises in UK in year 2019. Apart from this, 5.6 millionmicro business were operated in UK
in 2019 and have not more than 9 employees. This businesses highly contribute in growth and
development of United Kingdom. In between year 2018 and 2019, there was approximately 4%
increase in number of firms in UK.

Illustration 1: UK Businesses by Size
(Source: UK Businesses by Size, 2019)
Small businesses offered around 9.2 million jobs to the people who live in country and
highly contribute in improving the living standard of society. From 2.7 million jobs, around 70%
of employment is provided by small and medium size organizations. Micro and small businesses
contributes in Gross domestic product of country and development of local economies by
bringing innovation and growth to the society in which a company is established. As per the
above provided statistics and data, it can be said that small and micro businesses highly
contributes in growth and development of economy of United Kingdom (Galloway, Kapasi and
Sang, 2015).
P4: Significance of small businesses as well as business start-ups to social economy's growth
Social economy is referred as the diversity which is formed by firms and business
enterprises. In the economy of United Kingdom, small organizations plays very crucial role in
terms of improving living standard of society by creating jobs and enhancing the economy of
country by contributing in its growth and development. Small businesses and startups provides
employment to many people which contributes in enhancing the life style of society. These firms
develop job opportunities and drive economic growth of country in small geographic areas.
These businesses also prefers to hire local people in the company instead of moving to new
territories (Ghio and et. al., 2015). the significance of small companies and start ups in the
growth of social economy are mentioned below:

Contributing to government with Taxes:
When local small businesses are patronised by consumers, they are providing money back to
community or society. High level of revenue will be generated by local business, it means firms
will pay higher Taxes, involving local property tax. This generated money is then utilised for fire
departments, schools and local police. A thriving business can also enhance property values
throughout the communities. This will help in development and growth of society of the country.
Provide employment:
Small businesses provides large number of employment to people who lives in the society.
Small firms hire local people and emphasize more on development of people who lives in
society. By bringing growth as well as innovation in community, small business is highly
contributes in development of social economy (Henry, Foss and Ahl, 2016).
Improving living standard of society:
The contribution of small businesses and starts ups is very high in the growth and
development of society or social economy. By providing employment opportunities to local
people, small businesses uplift the standard of society and enables people to living healthy and
happy life. This highly contributes in social development of country.
TASK 3
P5: Different skills and characteristic traits of successful entrepreneurs which differentiate them
from other business managers
There are various skills and characteristics which are having by entrepreneur that differentiate
them from other business managers. These skills and characteristics make them distinct from
other people (Krajňáková, Navikaitė and Navickas, 2015). Some characteristics which are
possess by Elizabeth Gooch and Tom Mercer are mentioned below:
Skills possess by entrepreneurs:
Time management skills: careful planning, developing milestones, implementation and
iteration, all these are significant for an entrepreneur to be successful. Without the right
management of all these, no project would lead towards progress. Proper time management is
very necessary for successful completion of a project and accomplishment of aims and
objectives. Effective Time management skills are possess by both the entrepreneurs, Tom Mercer
and Elizabeth Gooch. This skill help them in implementing the strategies and plans in proper

way and performing all the activities on time which makes them distinct from business
managers.
Strategic thinking skills: learning to resolve the issue to its core by thinking strategically
reveles the opportunity of good for entrepreneurs (Malecki, 2018). Both the entrepreneurs, i.e.,
Tom mercer and Elizabeth Gooch possess good strategic thinking skills which helps them in
resolving issues of business in effective way. Determination of creative solutions to the problems
make the entrepreneurs distinct from other business managers.
Characteristic traits possess by entrepreneurs:
Risk taking: it is one of the characteristic which is possess by entrepreneurs. It is very
necessary for an entrepreneur to have risk taking ability as without this, they cannot able to
discover something unique. Both Tom and Elizabeth possess risk taking ability and are always
ready to invest their money and time in executing new and innovative ideas. Apart from this,
they always prepare a backup plan for the risk they take. this characteristics of entrepreneurs
make them distinct from business managers as they can not take risks as the entrepreneurs do
(Oviatt and McDougall‐Covin, 2015).
Passion: This is the another characteristic which the entrepreneurs possess. This
characteristics allows them to put their extra efforts in accomplishment of the goals and objective
set by them. There are various hurdles faced by entrepreneurs while initiating a venture, but their
passion and hard work enables them to overcome these and move towards the goals. Tom mercer
and Elizabeth Gooch, both possess this characteristic which makes them distinct from other
business managers (Ramadani, Gerguri-Rashiti and Fayolle, 2015).
P6: The way aspects of entrepreneurial personality show entrepreneurial mindset and motivation
Successful entrepreneurs are those who take all their decisions with focused mind set and are
self motivated. The generally worked for resolving the issues of society by bringing new goods
and services in marketplace that satisfy the needs and wants of customers. Some personality
aspects of Tom mercer and Elizabeth Gooch are mentioned below:
Confidence: both the entrepreneurs possess high level of confidence and believes in their
ideas and creations rather than other people. They never blames for the wrong to others and
accept all their mistakes and work on improving them. This reflects the positive mind set and
good motivation level of the entrepreneurs.

Far sighted: this is the another aspect of entrepreneurial personality which reflects their
motivation and mindset. Tom and Elizabeth, both saw the future before hand as this enable them
to think about the future growth opportunities in the changing world. This entrepreneurial aspect
reflects the personality of both the entrepreneurs (Spence, 2016).
Intelligent and visionary: this personality aspect of entrepreneurs reflects their
intelligence level and their visionary thinking. The entrepreneurs are visionary and thinks for
long term. They prepare great plans for future and work with complete focus to accomplish goals
and objectives. This reflects the ability of entrepreneur to envision the future.
For analysing the personality aspects of entrepreneurs, big five personality model can be
used as this model provides broad view of personality of a person or an individual. The five
aspects or dimensions of this model are mentioned below:
Extroversion: Individuals who possess this trait have behaviour which is socially confident.
These people enjoy to meet with new people as well as they are talkative and guardant in social
circumstances. Tom Mercer is highly extrovert and tends to find out opportunities or chances to
interact with new people.
Agreeableness: Persons who have trait of agreeableness are friendly as well as cooperative in
nature. These people are more likeable by others or by their colleagues (Galloway, Kapasi and
Sang, 2015). They dislike to being involved in conflicts, confrontation and arguments. Both Tom
Mercer and Elizabeth Gooch possess trait of agreeableness and are respected, liked and
erogenous to needs of others.
Conscientiousness: The trait demonstrates the tendency to act in a way which is socially
acceptable and which assist behaviour which is directed by goals. These people are aware
regarding their actions and behavioural outcomes. Individuals with high conscience like Tom
Mercer and Elizabeth Gooch set ambitious goals and accomplish them by putting their full
efforts.
Neuroticism: Individuals with this trait are measured based on their emotional stability or
instability. People who possess high neuroticism are proximal to worry, low self esteem anxiety
and sadness. These people over think on problems and exaggerate their significance.
Openness to experience: These people consist traits such as possess range of interests and being
insightful and imaginative. It reflects their creativity level, preference of novelty and curiosity.
This personality dimension is associated with intelligence. Both Tom Mercer and Elizabeth

Gooch is high in this aspect and loves to acquire new things, enjoys the arts and , engage in
creative career (Krajňáková, Navikaitė and Navickas, 2015).
TASK 4
P7: The way experience and background of entrepreneur can hinder or foster entrepreneurship
among them
Elizabeth Gooch is one of the successful female entrepreneur in United Kingdom and is
CEO and founder of EG solutions. The firm is selling software of operations management that
assists clients to develop improvements in efficiency and performance of operations. She started
work with HSBC bank in the age of 18 and after 12 months, she left the bank. After that, she
joined a consultancy firm that assist large organisations to find effective ways to utilize their
staff (Ugorji and Ani, 2018). Later, after 8 years, Elizabeth started her own business in the age of
26. For financing the business, she borrowed money from her friends and family members. The
support she get from her family members and friends and the experience she gain in her life
highly contributes in her success. As a result of her hard work and passion, she is now becoming
a successful entrepreneur. So, it can be said that the support from family and friends helps in
fostering entrepreneurship in her.
Tom Mercer is an entrepreneur who is founder of MOMA foods. It is a breakfast food
brand which is located in London. MOMA is one of the rapidly growing porridge brand in
market of United Kingdom. He completed his graduation from Cambridge University and was a
administration consultant with Bain and Co. in London. The entrepreneur has a lot of experience
across many areas of establishing a business in food sector – from inception, operations, strategy,
sales, marketing, finance and product development. Tom successfully sold MOMA in to the
main supermarkets of United Kingdom, high street retail, food service sector, seven airlines and
many train companies (Walsh and Cunningham, 2016). Distinct outsourced manufacturing
relationships has also set up by Tom Mercer, develop a great team or group and always working
on innovation and new product development. This experience of Tom Mercer foster
entrepreneurship in him and contributes in becoming a successful entrepreneur.
CONCLUSION
As per the above discussion, it can be concluded that entrepreneurship is the important
concept that contributes towards the development of society and economy both. Distinct

entrepreneurial ventures have different purposes and link with different Technologies. Some
similarities and differences are there in the ventures but all the ventures starts initially with small
amount of funds. Micro and small businesses highly contributes in growth and development of
economy as well as improving the living standard of society. there are different skills and
characteristics like time management in strategic thinking skills and the characteristic includes
passionate and risk taking are possessed by entrepreneurs which makes them different from other
business managers. There are some aspects which reflects the mindset and motivation of
entrepreneurs and their background and experience fosters entrepreneurship among them.

REFERENCES
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