Entrepreneurship and Small Business Management

This report explores the field of entrepreneurship and small business management, covering various entrepreneurship ventures, their similarities and differences, and the impact of small businesses on economic growth. It also discusses the characteristics and traits of successful entrepreneurs and the role of the environment in fostering entrepreneurship.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examination of various entrepreneurship ventures................................................................1
P2 Examination of similarities and difference between entrepreneurial ventures......................2
TASK 2............................................................................................................................................4
P3 Assessment of influence of small businesses on economical growth....................................4
TASK 3............................................................................................................................................5
P5. Analysing the characteristics, traits and skills of successful entrepreneurs and business
managers.....................................................................................................................................7
P6. Identifying the aspects of entrepreneurial personality which reflects the motivation and
mind-set.......................................................................................................................................8
TASK 4..........................................................................................................................................10
P7. Examine the background and experience to hinder and foster the entrepreneurship..........10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is an activity of satisfying the needs of society with the clear intention
of earning profit. This report include the demonstration of range of entrepreneurial ventures. The
report also cover the impact of small business on the growth of the economy. Further the report
cover the assessment of key factors that determine the entrepreneurial mindset. Lastly the report
comprise the role of environment in boosting and hindering entrepreneurship (Burns, 2016).
TASK 1
P1 Examination of various entrepreneurship ventures
Entrepreneurship is a field where entrepreneur take all risk and enjoys maximum profit.
Entrepreneurship is basically a term used for the activity of solving the problems of society with
an innovative solution. The nature of entrepreneurship is define by its objective and idea
implemented. The traits of entrepreneur is a factor that determine the growth potential of a
particular venture. The detail description of different kinds of entrepreneurship and entrepreneur
are given below:-
Types of entrepreneurship
Small Business Entrepreneurship: This is the most common kind of entrepreneurship.
It originate with a common idea and remain as a part of venture crowd. Maximum
entrepreneurship in the business world comes in this category. It is usually operated by
entrepreneur to earn a normal livelihood. Entrepreneurs are usually not intended to expand their
business in the lure of high income. They just earn sufficient money to feed their money.
Examples of small business are general stores, salon, restaurant, hotel etc.
Scalable Start-up Entrepreneurship: This type of entrepreneurship are practised to
solve the underserved needs of the society with an innovative in nature. Scalable start-up
entrepreneurship can be disruptive in nature as they have tendency to affect the profitability of
existing businesses. It originates with innovative idea or invention. A highly successful start-up
is a blend of innovation and invention that disrupt the market with frequency. Example of
scalable start-up entrepreneurship is Uber and Airbnb (Donckels, and Miettinen, 2019).
Large company entrepreneurship: In large company entrepreneurship, big companies
brings innovation in their products to stand apart from the competition. Giants ventures possess
huge financial and human resources that can build out of the box technology that delight
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customers and helps in acquiring and retaining customers. They continuously enhance the
features of existing products and launch them before customers realise the needs of such
features. Examples of large company entrepreneurship are Apple, Facebook, Microsoft and
Google.
Social Entrepreneurship: It refers to the organisation that work for making the world a
peaceful, safe and happy place to live. Social entrepreneurship aims to eliminate problems and
satisfying needs of the society without expectation of profit. Social entrepreneur accumulate
finance from donation by government, rich people and sometimes pool of common people of the
nation. The nature of social entrepreneurship can profit making or hybrid (Mitra, 2019).
Types of entrepreneurs
Innovators: It refers to those entrepreneurs who start business by blending their
innovative idea and engineer's technology. Innovators are disruptive in nature as they possess the
calibre to capture all the market share. Examples of innovators are Steve Jobs and Larry Page.
Innovators initially adopt scalable start-up entrepreneurship and eventually work as large
company entrepreneurs after their start-up becomes giant.
Hustlers: It refers to those entrepreneur who believes in working hard with common
idea. They start business in small scale with the expectation of becoming a business tycoon in
future. Example of Hustler are Mark Cuba. Personality of Hustlers are suitable for small business
and larger company entrepreneurship (Wang, and Liu, eds., 2016).
Imitators: This type of entrepreneur acts as a follower of innovators. They take effort to
take advantage of idea introduced by innovators. They conduct proper research on the way
innovators implement the idea and assure that mistakes made by innovator would not be repeat.
The type of entrepreneurship imitators perform is scalable start-up entrepreneurship. They
introduces improvised version start-up.
P2 Examination of similarities and difference between entrepreneurial ventures
Basis Small Business
Entrepreneurship
Scalable
entrepreneurial
venture
Large company
entrepreneurial
venture
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Innovation Small businesses are
not concerned with
innovation. Innovation
is simply ignored by
the small businesses.
Innovation plays a
crucial role in success
of scalable
entrepreneurial
venture. Success of
any start-up is drive by
innovation.
They have immense
financial resources for
bringing innovation in
society.
Scopes Scope of small
businesses is limited to
small consumer
segment. Small
business growth within
the boundaries set by
entrepreneur.
Scalable
entrepreneurial venture
have unlimited growth
potential and can
capture large market
share. It can make
progress Scalable
entrepreneurial
venturetScalable
entrepreneurial
ventureo the extent of
becoming la leader in
the marketplace.
This venture has
limited scope as it is
already well
established and owns a
large market share.
Rate of growth Rate of growth is low
as the entrepreneurs
are reluctant to take
risk. The sole
objective of small
businesses owner is to
make sufficient profit
out of the business.
Rate is growth in
scalable
entrepreneurial venture
is extremely high.
Entrepreneur not fear
of taking risk. It has
the tenScalable
entrepreneurial
venturedency to break
even point and pace
Rate is growth in this
types of
entrepreneurial
ventures is extremely
high.
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and eventually
becomes the profit
making business.
Profit Profit earning is the
main objective of
small businesses
entrepreneurs. They
make marginal profit
sufficient to for
fulfilling basic needs.
Profit potential of this
venture is extremely
high. However start-up
consume time in
making actual profit.
Scalable
entrepreneurial venture
focuses more on
customer satisfaction
and capturing of
market share.
Large company enjoys
huge profit margin.
Finance Small businesses
entrepreneurs seek
funds from their
savings and bank loan
(Sauka, and
Schneider, 2016).
Scalable
entrepreneurial venture
are funded by venture
capitalist and angel
investors.
Large companies
utilize their retained
earning.
Technologies Trending technologies
are utilized for
streamlined business
operations. Popular
technologies are
leverage for the
purpose of marketing,
accounting and
rendering services to
customers.
Technological is a
critical ingredient for
innovation. Scalable
entrepreneurial venture
are equipped with
highly advanced and
innovative technology
that is not visible to
customers before the
advent of a particular
This venture owns
proprietary technology
that render high
competitive advantage.
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start-up.
Life cycle Life cycle of small
businesses are longer
than start-up. There is
low rate of shutdown
in small businesses
context.
Life cycle of start-up
is shorter than small
businesses. Few start-
ups is able to survive
in the long run.
Life cycle of large
companies is very
long. It sustain from
generation to
generation.
Team and
Management
There is very less
number of workers.
Management of this
entrepreneurship are
centralize and rigid
towards growth
opportunities (Ratten,
2016).
Successful scalable
entrepreneurial venture
are the biggest
producer of jobs in the
market. Organisational
structure is
decentralized and
flexible towards
growth opportunities.
Management of large
companies are
centralized and
hierarchical.
Way of life Small businesses
owners are less likely
to take risk live and
prefer to live ordinary
life with balance in
professional life and
personal life. Initially
they have to work
more to stabilized
business. Later they
enjoy the adequate
ratio of personal and
professional life.
Start-up owner are
more likely to take
risk. They face
challenges in initial
stage of business.
Later if business reach
at stage of prosperity
than owner enjoy
luxury life.
They live a luxury
lifestyles.
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Similarities between entrepreneurial ventures
Small Business
Entrepreneurship
Scalable entrepreneurial
venture
Large company
entrepreneurial venture
Profit making is the ultimate
objective of the society
(Henry, , and et. al., 2015).
Profit making is the ultimate
objective of the society
(Henry, , and et. al., 2015).
Profit making is the ultimate
objective of the society
(Henry, , and et. al., 2015).
All entrepreneurship ventures
cater to the needs of the
society.
All entrepreneurship ventures
cater to the needs of the
society
All entrepreneurship ventures
cater to the needs of the
society
All form of entrepreneurship
contribute to the growth of the
economy.
All form of entrepreneurship
contribute to the growth of the
economy.
All form of entrepreneurship
contribute to the growth of the
economy.
TASK 2
P3 Assessment of influence of small businesses on economical growth
Large businesses are highlighted in the economy but they contribute less in the growth of
economy. Their contribution in rendering jobs is very compared to small business. However they
are excellent in bringing innovation in the economy. They are good in improving lifestyle of
people. Contribution of micro business and small businesses in the growth of UK economy is
given below with statistics:-
Micro Business
Micro business usually connotes small business with workforce of less than ten
employees. The turnover of micro business are not more than 50,000 pounds (The Global Micro-
Business Impact Report. 2020). The sole objective micro enterprise owner is to make marginal
profit to earn a basic livelihood. Example of micro businesses are general stores, small cafes and
bakery (Ratten, and Dana, , 2015).
Small Business
Small business refers to all the business entities that operate on very small scale. It
comprises of sole proprietorship, partnership firms and corporations that owned are owned by
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common people. Workforce of small businesses are compose of maximum 50 employees.
Maximum turnover of the small businesses is 6.5 million pound. Examples of small businesses
are Archipelago and The Bowler.
Contribution of micro businesses in UK economy
5.6 million micro business exist in UK (SMEs and the Economy.2020). The share of
micro business in the composition of business is 96%. Micro business plays an important role in
boosting the gross domestic product rate of UK. Micro business contribution in taxes is
significant. 33% percent of employment in the country are generated by micro businesses. Share
of micro businesses in turnover of all the businesses in the country are 21%. Micro business
contribute very less in bring innovation in the economy due to lack of resources (Piperopoulos,
and Dimov, 2015).
Contribution of small businesses in UK economy
Small businesses have significant contribution in the growth of the economy. Only 1% of
all businesses accounts for large businesses rest are small businesses in the country. Small
businesses credit worthy of fast growing economy of UK. Small businesses are responsible for
majority of jobs in UK. 60% of all the nation's workforce are employed by small businesses
(SMEs and the Economy.2020). 16.3 million people work in this sector (SMEs and the
Economy.2020). As the 99% of all businesses in UK are small businesses therefore government
receive good amount of taxes from this sector (SMEs and the Economy.2020). Small business
contribution in bringing innovation in the market is not much as it lack in human and financial
resources that are important for taking out innovation in the economy.
TASK 3
P4. Importance of small business and start-up business in growth of social economy
Social economy:- This economy is referred as the relationship between social behaviour
and economics which follows the social ethos, norms and code of conduct. This influence the
consumers behaviour by attracting them to purchase more of products. It is formed by
diversification of enterprises in cooperatives, mutuals, associations, foundations, etc., which are
discussed below:-
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 Mutuals:- This is described as providing general and life insurance services for societal
security. Mutual society is governed by the members of corporate governance to deal
with health and safety for social group. Example:- Anglo Saxon Friendly Society.
 Foundations:- This economy was founded by Joseph Rowntree to increase growth of
organisation by providing employment to reduce unemployment. Example:- Economist
Charitable Trust, EDF Energy Trust, etc.
 Charities:- The societal benefits for extra work as doing charity, building social capital,
etc., are very essential for organisation in its voluntary sector. This leads to foster support
to small- scale economy for its recovering of rural areas. Example:- Oxfam organisation
works to eradicate global poverty(Simatupang, Schwab, and Lantu, 2015).
 Associations:- This is referred as the process to welcome academic practitioners for good
result and complex societal interactions with moral consequences. The organisation
qualifies to NGO, help disabled human beings, cooperatives, etc. Example:- Britain's
Bravest Manufacturing Company
Importance of Small Business and Start-up business in growth of social economy:-
These importance of SME and start-up business plays very vital role in development of
rural to urban areas. This leads to growth of business with the society members in achievement
of organisation goals with full utilisation of scarce resources. These are further explained below:-
 Create job opportunities:- The ability to provide job opportunity for societal members
is to reduce unemployment which leads to develop towards modernisation for urban
areas. Organisation focus on qualification of individuals and provide job accordingly
which result in helping environment. This leads to increase consumer support for
business to achieve success easily with competitive advantage to compete from its
rivalries.
 Improve people lifestyles:- This is the basic concept for organisation to understand the
terms and conditions of business and society which further leads to improve lifestyles.
The rural areas are introduced with the climate, nature, working style, environment while
performing tasks. This will help them in better performance with better living, lifestyle
with increase in purchasing power (Vargas, 2015).
 Environmental protection:- This is the most important factor which is to be focused by
every business is to protect the environment from air, water, noise pollution which have
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an adverse impact on society. The entrepreneur must adopt precautionary steps to avoid
such these cases of environmental pollutions which affects the health of society.
P5. Analysing the characteristics, traits and skills of successful entrepreneurs and business
managers
Characteristic, traits and skills of an entrepreneur plays very essential role in achievement
of organisation goals and objectives for its success and stability in competitive market. These
features of entrepreneur leads to develop and manage each activity of organisation with presence
of mind and actively. These are further described below:-
Characteristic:-
 Self Motivation:- This is the strength of Simon and Bobby Arora to achieve its goals
with full motivation by increasing consumer satisfaction for their qualitative products. It
leads entrepreneurs to accomplish its targets effectively and efficiently.
 Take Risk:- The Simon entrepreneur used to take high risk in goal achievement with the
belief that where there is a risk there is a gain supported with high risk is always
equivalent to high rate of return.
Traits:-
 Persuasive:- These both entrepreneurs Simon and Bobby Arora are highly capable for
their persuasive nature as they were able to motivate managers and employees to perform
certain task as their little effort may lead to achievement of organisation goal.
 Vision:- This is the desired target or goal set by entrepreneur to be achieved in future
with long run direction and control. The Simon vision is to run the business with strength
and opportunities as competitive advantage to solve the problems with mission
accomplishment.
Skills:-
 Time Management:- It is the ability of both entrepreneurs Simon and Bobby Arora to
manage time by proper direction and control over organisation activities. This increase
efficiency with reduction in errors leads to achievement of objectives.
 Communication:- It is very important skills for Simon and Bobby Arora to communicate
properly with their managers, staff, society members, etc., which implies their positive
attitude in organisation. This is followed by their patience, tolerance, self – learning
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concepts which leads to co-operate and co-ordinate with each other (Wang, Jessup, and
Clay, 2015).
Basis of difference Entrepreneur
( Simon and Bobby Arora)
Business Manager
1.) Leadership These entrepreneurs are
highly confident, honest and
good decision to set desired
goals.
The business manager focus on the
activities which are alloted by
entrepreneur are directed and
controlled to achieve target.
2.) Self – Motivated These entrepreneurs are used
to be self- motivated as they
have the intention to achieve
success for their stability to
compete from its rivalries.
The business managers are not
always self- motivated as they
have to direct and control certain
activities for accomplishment of
goal which consists of high
management.
3.) Independence The entrepreneur are
independent as they have the
right for strategic decision
making of setting goal on
which the whole organisation
has to perform various
activities.
The business managers are
partially as they have the right to
direct and control the actions
according to their plan which leads
in sustainability of organisation
with maximisation of revenue,
profits and market share.
P6. Identifying the aspects of entrepreneurial personality which reflects the motivation and mind-
set
Entrepreneurs personality:- This personality traits of businessman includes abilities of
human, motives, value and attitude to determine the experience and actions. These attribute focus
on different process of taking decisions to perform it in future. The entrepreneurial personality of
businessman creates motivation for employees to perform their task with same eager and zeal to
achieve success which implies good image enterprise. This personality increase motivation
through their efficient goal achievement working in co-operative and co-ordinative nature.
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Example:- Self- motivated and self- confident are the important feature of entrepreneur
personality.
These entrepreneurial personality traits are further explained on the basis of Ocean
Personality Test which is as follows:-
Ocean Personality Test:- This test is also known as Big Five- Factor model. This is used
for personality survey data by several factors of analysis for description of human behaviour. It
consists of five components which are as follows:-
 Openness:- This factor implies that various ways of expressing innovative ideas are
being implemented by Simon in order to produce specialised and qualitative products.
This results in increasing brand awareness among consumers by positioning it through
advertisement, posters, digital marketing, etc., with increase in market revenue, profits
and share. The Simon focus on various experiences and knowledge which were
implemented before and their outcomes are to be taken care for not repeating same
mistakes which reduce unnecessary delay in goal achievement.
 Conscientiousness:- This is described as the process to rate high and low by the people
for its efficiency and organised pattern. If the rate is high than it's considered with proper
time management and well organised whereas if rate is low than it is lacking in goal
achievement. It is the tendency for self- discipline behaviour performing the activities as
discussed to meet the expected desires.
 Extraversion:- It is explained as the ability to be extravert by interacting with lots of
people by exchanging ideas and views. They are tend to be keen and eager with their
actions to accomplish it as soon as possible. Bobby Arora is very extrovert entrepreneur
as they possess to communicate with the group members easily and appear prominent in
social relations.
 Agreeableness:- This is explained as to identify the interest and involvement in
performing specific task which leads to accomplishment of goal with its stability to
compete from its rivalries. It is the ability of entrepreneurs to feel free to communicate
with each other. The high rating of people implies friendly and co-operative behaviour
whereas the low rating of people implies more logical and unconcerned.
 Neuroticism:- It is the ability to deal with emotional instability. It is the tendency to
observe negative emotions of people as anger, anxiety, stress and depression. These
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emotions normally describes the worse mood of human which impact adversely in
achievement of organisation goals. The entrepreneurs are frustrated with work burden
which results in emotional nature with delay in success of organisation. That's why it
create negative impact on the stability to compete from its rivalries.
TASK 4
P7. Examine the background and experience to hinder and foster the entrepreneurship
Entrepreneurship background is positively and negatively affected by the people through
various ways to hinder and foster business. The high rating of people leads to attain good
background with proper image and reputation to achieve desired target efficiently which results
in foster whereas the low rating of people creates hinder for organisation. These are further
explained on both entrepreneurs Simon and Bobby Arora which are as follows:-
Simon Arora:-
Background:- The background of Simon Arora such as family, friends, etc., which
impacts the negative role in entrepreneurship. The Simon Arora was born in November, 1969
being the CEO of retail chain B & M. He studied in Cambridge University for its law
qualification. The family was already having business but still Simon opted to start a new entity
which creates threats in competitive market. The background of Simon Arora also affects the
positive role through motivating them by providing funding to invest which may further result in
capital generation. The family background has played a huge role in success of business by
promoting the Simon Arora to compete from their rivalries with their competitive advantages
and in strengthening opportunities against them.
Experience:- The Simon Arora has many experiences many hazard and problems which
have adverse impact on its maximisation of profits. These experiences are described as lacking in
producing qualitative products with cheap prices results in unstability of organisation to compete
from rivals. The past experiences of entrepreneur plays positive role by guiding them not to
repeat the same mistake and to eliminate the occurrence of same mistakes.
Bobby Arora:-
Background:- The background of Bobby Arora with reference to family, friends,
colleagues, etc., which affect the behaviour of entrepreneur lifestyle. The Bobby Arora was
born in January, 1972 being the Trading director of B & M. The background keeps on
12

demotivating the businessman and making their lifestyles complicated with further
responsibilities which delay in goal achievement.
Experience:- The Bobby Arora experiences various challenges in goal and objective
achievement as it impede the action by reducing self- efficiency in achievement of organisation
goals. They have learnt a lot from past experience which foster Simon to take every step
carefully which delay in achievement of success. The experiencers of Bobby Arora leads to
emphasize its mistakes by not repeating it again and again which increase efficiency in
accomplishment of success for its stability (Block, and et. al., 2015).
CONCLUSION
From the above report it has been determine that an entrepreneur are basically the
innovators that have the ability to take calculate risk and cover the problem into desirable
solution. This makes them an essential part of the society and distinguish their business from
other traditional business entity. The existence of different type of an entrepreneur that have the
team of like minded people and work together in order to achieve the particular goal or objective.
For instance, social enterprise function for the social motives whereas scalable or large
entrepreneur have the motive to diversify their business and generate explicit amount of revenue.
Small business and start up plays vital role in terms to enhance the employment opportunity and
adequately maintain the circulation of funds within an economy. Moreover, entrepreneur needs
to focus in terms to enhance their existing trait, skill and characteristics in order to shape the
functioning and support the internal operation. Therefore, efforts need to be taken ion order to
overcome the negative circumstance and conduct the performance in order to gain long term
sustainable performance.
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REFERENCES
Books and Journals
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Business Economics. 44(1). pp.37-54.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Donckels, R. and Miettinen, A., 2019. Entrepreneurship and SME research: on its way to the
next millennium. Routledge.
Henry, C., and et. al., 2015. Entrepreneurial leadership and gender: Exploring theory and practice
in global contexts. Journal of Small Business Management, 53(3), pp.581-586.
Mitra, J., 2019. Entrepreneurship, innovation and regional development: an introduction.
Routledge.
Piperopoulos, P. and Dimov, D., 2015. Burst bubbles or build steam? Entrepreneurship
education, entrepreneurial self‐efficacy, and entrepreneurial intentions. Journal of Small
Business Management. 53(4). pp.970-985.
Ratten, V. and Dana, L.P., 2015. Indigenous food entrepreneurship in australia: mark
olive'Australia's Jamie Oliver'and Indigiearth. International Journal of
Entrepreneurship and Small Business. 26(3). pp.265-279.
Ratten, V., 2016. Female entrepreneurship and the role of customer knowledge development,
innovation outcome expectations and culture on intentions to start informal business
ventures. International Journal of Entrepreneurship and Small Business. 27(2-3).
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Sauka, A. and Schneider, F. eds., 2016. Entrepreneurship and the shadow economy. Edward
Elgar Publishing.
Simatupang, T.M., Schwab, A. and Lantu, D., 2015. Introduction: building sustainable
entrepreneurship ecosystems. Int. J. Entrepreneurship and Small Business. 26(4).
pp.389-398.
Vargas, M.I.R., 2015. Determinant factors for small business to achieve innovation, high
performance and competitiveness: organizational learning and leadership
style. Procedia-Social and Behavioral Sciences. 169. pp.43-52.
Wang, H. and Liu, Y. eds., 2016. Entrepreneurship and talent management from a global
perspective: Global returnees. Edward Elgar Publishing.
Wang, X., Jessup, L.M. and Clay, P.F., 2015. Measurement model in entrepreneurship and small
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Online
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SMEs and the Economy.2020[Online]Available through<www.fsb.org.uk/uk-small-business-
statistics.html>./
The Global Micro-Business Impact Report. 2020[Online]Available
through<smeloans.co.uk/micro-business-statistics-uk-2019/>./
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