Entrepreneurship and Small Business Management

This document discusses the types of entrepreneurial ventures and their typologies, explores the impact of small businesses on the economy, determines the key aspects of entrepreneurial mindset, and evaluates the differences between entrepreneurs and business managers.

Entrepreneurship and Small Business
Management

Contents
INTRODUCTION........................................................................................................................................................................................................3
P1 Explain the types of entrepreneurial ventures and its typologies........................................................................................................................4
P2 Explore the similarities and differences between the different ventures.....................................................................................................5
LO 3..............................................................................................................................................................................................................................6
P3 & P4 Assess the impact of small businesses on the economy............................................................................................................................6
P5 Determine the key aspects of entrepreneurial mindset.......................................................................................................................................7
P6 Entrepreneurial personality reflects motivation and mindset:..........................................................................................................................10
LO4.............................................................................................................................................................................................................................11
P7 Entrepreneurial background and experience.....................................................................................................................................................11
CONCLUSION..........................................................................................................................................................................................................12
REFERENCES...........................................................................................................................................................................................................13

INTRODUCTION
Management is defined as the planning, managing and coordinating of all the activities in an organization. Entrepreneurs
and small business owners are liable for managing the multiple aspects of the firms. Whereas, entrepreneurship is related to
the thinking, designing and managing the new businesses with a view to earn maximum profitability at a low risk.
Entrepreneurs as well as owners divert their ideas and opinions into a business after viewing the market opportunities. They
needs to understand about the managing resources, capabilities, employees as well as finance while running their own
businesses or thoughts. For entrepreneurship small business management McKinsey & Company is taken which is
American worldwide management consulting firm. It was founded in 1926 by James O. McKinsey in order to apply
accounting principles to management and headquarter in New York, United States. Under this report discussed about the
entrepreneurial ventures and its typologies along with the similarities and differences in the ventures. In addition research is
also done and collect data's and statistics which impacts on the country's economy. Also, determine the skill sets and traits
to ensure the success and growth of businesses.

 Scalable start-up's entrepreneurship: These entrepreneurs start their business
with a clear vision of could change the world from day one. They attract
investments from venture capitalist and start-up's in UK which includes
Freeagent, Vinaya etc.
 Large company entrepreneurship: These helps in offerings new products in
new market and customer segments with a view to sustainable innovation which
takes place due to the pressure of change in taste, technologies and legislations.
This includes Peter Jones enterprise academy.
 Social entrepreneurship: These innovators focused on the developing goods and
services that helps in solving the social problems and fulfil their needs with a
motive of making world a better place. For example, Gravity Light, Speakset
etc.
Typologies: These are based on the growth, gender and motives etc. that can be
described below:
 Male entrepreneurship: This kind of enterprises are owned and controlled by
the young, competent and risk taker men and they are more into start-ups and
large ventures.
 Female entrepreneurship: This enterprise initiated and managed by the women
and these are less in numbers because of risk avoider behaviour and they are
initiate foe mainly social ventures.
 Lifestyle entrepreneurship: These kind of entrepreneurs believes in small scale
and social ventures because they enjoy their life quality and less focus on the
development strategy.
 Growth entrepreneurship: These enterprises deals in long time survival of
business by making practices related to cost cutting as well as future goal
commitments. They exist in all kind of ventures.
Entrepreneurial venture is defined as combination of two words such as
entrepreneurial and ventures. Entrepreneurial refers to the capacity and willingness
of a person to initiate, design and manages a new business whereas, ventures
provide services to develop a positive change as well as environment within the
workplace. This can be categorised in mainly two sectors that can be considered
below:
Public sector entrepreneurial venture: This refers to the initiation of creative
public policies and activities as well as technological development while a country
faces uncertainty issues that helps in generating high economic prosperity. For
example, BBC and Automatic weapons establishment (AWE).
Private sector entrepreneurial venture: Organizations which are usually free from the
government ownerships and control are considered as a private venture. This involves the
sole proprietors, small and medium sized business as well as large multinational
companies. For an example: McKinsey & Company.
Types: There are four kind of entrepreneurial venture which are to be formed in a unique
way and all are differ from each other. It can be described as:
 Small business entrepreneurship: The success point of view of that businesses
is to feed their family and earn profits. Entrepreneurs of small businesses are
those who runs their own firm and theses are related to catering and courier
services, business consulting as well as website design. For example, Café Pod
Coffee Co.

Difference between start-ups and social ventures:
Basis Start-ups venture Social venture
Definition These businesses operate with a
clear vision of could change the
world.
These are non-profitable organization
which helps in solving the problems of
society.
Objectives To achieve the financial as well as
non-financial objectives for making
high profits.
The object is to focus on social needs
and values instead of just making
wealth.
Nature These are based on creative and
latest techniques and concepts for
the purpose of continuous
improvements.
These are innovative, resourceful as
well as result oriented.
Similarities between the entrepreneurial venture: All entrepreneurial ventures are similar
in making profits by implementing strategic plans and policies as well as work for the
customer satisfaction. Also, the social and start-up ventures are emphasised on satisfying the
social needs and problems which are faced by the society.
Critically evaluate the scope, development and growth of entrepreneurial venture:
Entrepreneurial venture facilitate wide scope in the growth of businesses and
activities because they have more opportunities in the market. This will help in higher
productivity and efficiency in performance and have large scope in mainly industrial, service
as well as agricultural sector for capitalism, socialism and mixed economy. Also, they have
better growth and development options while establishing a new venture.
Difference between small and large scale ventures:
Basis Small scale ventures Large scale ventures
Definition These businesses operate
individually and requisite
capital, human resource and
finance are less in amount.
These ventures are owned by
innovative idea along with the
long term objectives in order to
sustain and survive for longer
duration in future.
Objective
s
The main objective is to feed
their families and make
profits.
To achieve desired goals and
outcomes in high profitability
ratio.
Nature Small ventures are flexible in
nature because of limited
market area coverage.
Large ventures are inflexible in
nature because of more staff is
needed to achieve desired goals.
Example Café Pod Coffee Co McKinsey & Company
◦ LO1: P2 Explore the similarities and differences between the different ventures
Entrepreneurship and Small Business Management
◦ LO1: P1 Explain the types of entrepreneurial ventures and its typologies.

◦ LO2: P3 & P4 Assess the impact of small businesses on the economy
Innovation: Small businesses focused on the continuous development by introducing
various creative and innovative concepts or ideas for long time survival in the market and
take competitive advantages. The population of UK is more innovative and growing and
they adopt changes easily it helps in increasing the chances of expansion as well as
entrepreneurs conduct research and development activities for gathering the market
information and trends.
Competition: This refers to a market activity where two or more persons are trying to
acquire the same things which are new for all. Competition termed as where profit of one's
is loss of other individuals. Small businesses and start-ups emphasised on grabbing the
opportunities by launching new and latest technologies as soon as possible for the motive
of taking competitive advantages in a better way.
Job creation: Employment is increases when small businesses and start-ups are more
established because these enterprise invests in labour operating machines instead of
automatic machineries. This will ultimately rise in the economic contribution of UK.
Opportunities: Small enterprises and start-ups increases the opportunities for women and
minorities who needs finance for achieving their life goals as well as to make them
independent. This will bring equality among people which helps in contributing more
towards the GDP and economic development.
Critically evaluate the impacts on different level of economy and in global context.
Small scale businesses play an important role in the development of country's
economy as they introducing the creative and innovative changes in techniques, products
and services. Economical changes in UK does not impact on the small scale enterprise
because these are operated at small level but issues and challenges of a country leads in
reformulation of policies and strategies of organizations. This will generate income and
employment as well as contribute to the GDP in local areas. Also it impacts on the
international economy because it helps in bringing innovative concepts and ideas as well as
increase the competition in market global world.
Impacts of small medium enterprise over the UK's economy can be described
by integrating and assessing data's and statistics which as follows:
SME contribution towards UK economy:
Interpretation: From the above interpretation it has been analysed that small and
medium enterprise are operates in several sectors and impacts on the country's
economy. Changes in the number of businesses and its contribution between 2015-
2020 has increased in some of the cities of UK such as London, Manchester, Leeds,
Bristol etc. In addition, the contribution of Birmingham city of that country have
constant contribution to GDP. Total number of SMEs in that cities were increased by
20% during the years of 2015-2020 from 651985 to 785013. Among all cities, London
is on lead position till 2020 which proves after forecasting the economic contribution
that increase from £149bn to £164bn from 2015 to 2020.
Growth of social economy consists with the development of small businesses and start-
ups that have combined goals, values as well as objectives. These businesses play an
important role in the social economic growth which can be described below:

LO 3
P5 Determine the key aspects of entrepreneurial mind-set.
An entrepreneur is a person who owned their own venture through grabbing an opportunity instead of working as an employee. They
assume all future risks and sharing ideas freely as well as takes their failure as a experience of learning (Daniel, 2016). To become successful
entrepreneurs every individual needs some creative features, concepts, traits as well as skills which are vary from another entrepreneur. This can
be shown by using two entrepreneur’s skill and traits that are considered below:
 Richard Branson
Characteristic
 Risk taking: All entrepreneurs are risk taker at a great extent because they discover something unique and motion on different route.
Richard Branson initiate to start mail order radio company which is riskier that time. Whereas, managers don't prefer risks in their profit
they avoid risk by changing the area and scope of working.
 Passionate: Entrepreneurs works with full of passion because they want to achieve something new in their life. They are self-confident
and motivated in each situations and problems which are faced by them in present as well as for future.
Skills
 Communication skill: Richard Branson says communication helps in making more human connections as well as allows persons to grow,
learn and progress. Also, he says that entrepreneurs need to focus on listening instead of talking.
 vision: It is a long term goal which are based on the future visionary image like what they want to achieve in future. Whereas, business
managers are focused on the short term goals. Richard Branson entered into hospitality and space tourism sectors with a clear view of
future image.
Traits

 Efficiency: It is required to perform and complete the work on time and achieve efficient and desired outcomes. At a time of incurred loss
Richard Branson diversified his business by entering into various industries to become stable.
 Networking: It is required to be a successful entrepreneurs or business managers because it helps in providing opportunities to expand
businesses or ventures globally. Richard Branson takes an advantage of his networking to expand and grow across the nations in several
sectors but managers operates in existing sphere.
 Alan Sugar
Characteristic
 Thinking: Entrepreneurs have an ability to think before they speaks for taking corrective and effective decisions. Creative thinking nature
of Alan Sugar helps to become an entrepreneur as well as feel motivated and confident while he speaks and communicate with public.
 Positive relationship: Every individuals have their own ego which reduce their own skills and relations with other people. Alan Sugar as
an entrepreneur focus on building and maintaining good, positive and favourable relationships at a workplace through down-falling its
own ego.
Skills
 Intelligence: This defines as a leadership attributes of an entrepreneur that are valuable and assist to manage all activities in an effective
and proper way. They required emotional intelligence at first because is helps in taking emotional decisions related to the situations and
targets of each individual who all are different from each other.
 Time management: Alan Sugar focused on time management plan as well as project management activities for the successful completion
of tasks on time. This skill needs to have by all entrepreneurs to carefully plan, implement, monitor and control the work as well as
defining the drawbacks immediately and improving within the time frame.
Traits

 Vision: It considered as a long term goals and objectives in a clear views of image related to what they want to achieve in future.
Entrepreneurs have clear vision because they focused on long term goals and success whereas, managers emphasised on short term goals.
 Creativity: Alan Sugar have creativity traits in its own behaviour which is important for him to become a successful entrepreneur. It helps
in thinking creative and innovative ways to improve the productivity and profitability as well as solving the problems and conflicts.
Difference between entrepreneurs and business manager:
Basis Entrepreneurs Managers
Meaning It is the owner of a company and they are responsible
for the success and failure of his own venture.
It is a employee of the company and they are responsible for the
management of groups and departments of an organisation.
Features Entrepreneurs are the risk taker and have clear vision to
grow and succeed their own business.
Managers are the risk avoider they works for salary in respects of
their employment.
Emphasised They focused on business start-up through innovative
and creative thoughts, ideas and concepts (Guerrero,
Cunningham and Urbano, 2015).
Manager focused on the ongoing operations and handling the
smooth functioning of day to day operational activities.
Motivational key The achievements of an entrepreneur considered as a
motivational and success key.
Managers power provides them motivation to work in an effective
way and maintain good culture at workplace.
Examples Joanne Rowling is consider as a best entrepreneur. Charles (chad) Holiday of Royal Dutch Shell plc is the best example
of manager.

P6 Entrepreneurial personality reflects motivation and mindset:
Personality traits includes the characteristic, values, motives, abilities as well as attitudes that helps in shape individual's personal
experience and their actions. Entrepreneurial personality trait is related to the mental and behavioural processes of individuals (Hnátek, 2015).
For long term survival in the marketplace entrepreneurs needs to communicate effectively, develop abilities as well as capability to solve
challenges on time by taking appropriate decisions. Entrepreneurial aspects reflect the motivation and mind-set of an individual that can be
analysed by using OCEAN personality model which can be described below in detail: Openness to experience: This dimension of personality helps in characterised the willingness of an entrepreneur to try and experience
new things and accept changes by facing market challenges. This involves that kind of persons who are able to take risks, clear vision as
well as open minded. Richard Branson are risk tolerance and more passionate towards their vision so he has openness personality in own
behaviour. Conscientiousness: This dimension involves standard features that are related to the high level of thoughtfulness, goal oriented
behaviour etc. These kind of entrepreneur’s personality helps in proactive planning and thinking about their behaviour which affects
others. Alan Sugar is more conscientious towards its performance because of the traits of creativeness and thinking before speaking in-
front of public (Julien, 2018). Extraversion: This defines the excitability, sociability, talkativeness and high control of emotional expressiveness of an entrepreneur.
Richard and Alan both have extrovert nature because of their positive attitudes and efficiency traits. Agreeableness: It involves the personality traits or attributes related to the trust, kindness, affection, altruism etc. and they are helpful,
considerate and generous in nature. This is essential for teamwork and gives satisfied results. Richard Branson have this trait because he
downsizes their ego level and build positive relationship at workplace for better understanding about people.
 Neuroticism: This is related to the sadness, emotional instability, irritable, mood swings etc. and leads to many psychological problem
including a lot of stress. This is considered as a negative behaviour of an entrepreneur and impacts negatively on business success.

LO4
P7 Entrepreneurial background and experience.
Entrepreneurs have different background which shows the failure and struggle behind their success factor that helps in facilitating the
motivation and confidence. Moreover, experience comes from the handling issues and challenges of their own life which makes them perfect and
indicates future growth and success (Ziegler, Horstmann and Ziegler, 2019). All successful entrepreneurs have unique background and
experience that can be described by considering any two entrepreneurs backgrounds and experience that can be shown as:
Background of Richard Branson:
Richard Charles Nicholas Branson was born on 18 July, 1950 in London and his desire to become an entrepreneur at a young age. His
father, Edward James Branson, worked as a barrister. His mother, Eve Branson was employed as flight attendant. He struggled with dyslexia, as
a hard time with their educational institutions. The first business venture, at the age of 16 was a magazine called student. His entrepreneurial life
started in music industry then expands into another sectors like space tourism, venture virgin galactic. It is also known for adventurous spirit and
sporting achievements which includes crossing ocean in hot air balloon.
Experience of Richard Branson:
Branson was born with strong desire and wish to become an entrepreneur at a young age so, he started youth magazines which is
successfully published and compliments of student magazines gives him motivation to start mail order record company. He bought radio studio
by gaining funds from magazines and successfully launched own venture. Many difficulties were faced by him but he takes all that risks as a
motivation factor and learning experience.
Background of Alan Sugar:
Alan Michael Sugar was born on 24 March, 1947 in Hackney, London. His father Nathan was a tailor in the garment industry of East
End. Sugar is an atheist and his wife Ann a former hairdresser married on 28 April 1968 and they have two sons and a daughter. He earned his
pocket money by working with a greengrocer. He started selling cars aerials and cigarette lighters at a age of 21 and launched own electronics

company Alan Michael Sugar trading in 1968. now, he is a big British businessman, political advisor as well as media personality and
occupations are as a celebrity, author, politician and entrepreneur.
Experience of Alan Sugar:
Alan Sugar is one of the successful entrepreneur of his time and having company Amstrad established at just age of 21 and get nobility
award. He was started to run their own venture since 12 years old and selecting several jobs at a age of school life. Alan proofs that experience is
more valuable then degree or educational qualifications. He was accorded the rank of Knight bachelor in 2000 for his business services.
CONCLUSION
It has been concluded from the above report that entrepreneurship impacts on the country's economy at a great extent. Entrepreneurs
introduced new and innovative ideas after analysing the market situations and opportunities which helps in increasing the employment
opportunities in the local market. Also, government encouraged entrepreneurial ventures by facilitating financial and technological resources.
Moreover, the importance of characteristic, skills and traits of an entrepreneur reflects the success of business because managers and
entrepreneurs are different from each other. OCEAN model of personality applied for study the entrepreneurship mind-sets, motivation and
behavioural aspects along with that describe the entrepreneurs background and experience which are differ for all entrepreneurs.

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