Entrepreneurship & Small Business Management

This document provides an overview of entrepreneurship and small business management. It discusses the types of entrepreneurial ventures, their relation to the typology of entrepreneurship, and the similarities and differences between entrepreneurial ventures. It also explores the impact of micro and small businesses on the economy and the importance of small businesses and business start-ups to the growth of the social economy. Additionally, it highlights the skills of successful entrepreneurs that differentiate them from other business managers.

Entrepreneurship &
Small Business
Management

Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................3
P1 types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship..........................................................................................................................3
P2. The similarities and differences between entrepreneurial ventures......................................5
LO2 .................................................................................................................................................7
P4 importance of small businesses and business start-ups to the growth of the social economy.
.....................................................................................................................................................8
LO3..................................................................................................................................................9
P5 skills of successful entrepreneurs that differentiate them from other business managers.....9
P6 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
References .....................................................................................................................................14

Introduction
Entrepreneurship is that an individual innovates an idea and take of doing do something
new in the market where act of setting something innovates and creative as a business and with
concern in mind for the society and completely different from others where entrepreneur deal
with great risk and different types of obstacles. Entrepreneurship is the act of setting the new
business idea with the vision and mission to do something new and bring the change.
Small business are the person who establish theretheir business on the small level with few
funds and high expectations from the market and wan to earn more profit. They have their day to
day expenses to surplus theretheir money. This study is going to focus on the types and
entrepreneurial ventures and their effects on the economy. In this study, we will see the
similarities and difference between entrepreneurial ventures and micro and small businesses put
theretheir impact on the economy of the respective countries. Importance of the small businesses
startups in the social economy. How they change the economy or they help the economy and also
show the motivation and mindset which reflects the entrepreneurial personality. A small size
businesses are not always focused on profit generation they work as small business. This report
also is the brief study about the roles and responsibility of entrepreneur and nature and
techniques of small business and what are the tools and techniques they follow for surviving
there enterprises in the market. Report will highlight the various types of entrepreneurial venture.
LO1
P1 types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.
1. Small business entrepreneurship – these types of entrepreneurship is only run by the
single or individuals who is the owner and only decision maker for the business with the fewer
employees where they have only responsible person who took over the business (Ayandibu and
Houghton, 2017. ). They only enjoy the small profit and sometimes they have little more profits.
The revenue generation is very low for them and average as theretheir business scale. They
continuously focus on the customer and getting more customers. This type of business is run by
the family members and with friends as a partner. captify, smith brothers, jjohn good shipping,
checkout.com, giacom many more in united kingdom running successfully.
Purpose - of this kind of business is to generation of revenue and go beyond the break
even point or at least touch that point. They do not want loss because it will cost them heavy loss

of resources. In the united kingdom the most demanded small business entrepreneurship is bed
and breakfast is the growing and now the leading in the small size business as a small business
they come with connect to land any vacant room at your house which can you want to land, they
will show them what is to be done or required.
2. Large business entrepreneurship – the large organization are the one who have finite life
cycle and they focus on the new product line and new product and services in the market.
They want the highest market share and run the whole market according to them as they
have high market share which can influence the market. The large businesses
entrepreneurship always focuses on the trends and demand of the customer. Unilever
have $50.982 billion revenue in the UK and it has the most successful business
Purpose- the large business entrepreneurship is always aimed for the customer satisfaction and
bring new changes in the market. Company like Unilever who is established ed in united
kingdom and selling their goods and services over 190 countries. Unilever also helps the
economy and provide the employment. One of the largest organization in the world by selling
different products in different product line.
3. Social entrepreneurship- this type of organization is always focuses in the favor of
society and this organization are non profit organization who which work for the society
and always focusing on the solving the social issues problems by delivering their
products and services.
Purpose – the main purpose of the social entrepreneurship is only one purpose to hephelp the
society. Hightown housing is the organization working for the society to provide the residents of
the united kingdom and on the easy cost and with satisfied term. Hightown housing is the non
profit organization.
Typology of entrepreneurship
life style leadership: under this lifestyle leadership an entrepreneur who emphasis son the
lifestyle of them not on the profit generation (Burns and Dewhurst, eds., 2016. ). This kind of
enterprises follow and focused on to the quality of the product and services.
speculative Ventures : These types of the entrepreneurs always base on the venture stats with
the aim to show the competitors and investors the efficiency and the innovative ideas and there
way to take risk generates which will increase the profitability.

P2. The similarities and differences between entrepreneurial ventures
Differences
factors Small businesses
entrepreneurship
Large businesses
entrepreneurship
Social
entrepreneurship
Goals and
objectives
These
organizations
always focuses on
the profit
generation and
the goals and
objectives always
aim towards the
growth . Growth
with revenue
generation is
important and the
main of the small
business
entrepreneurship
have this
objective.
The main aim of
the large business
entrepreneurship
has aim to give
new product and
services to the
market and large
business's
entrepreneurship
want to sustain in
the market and
lead the market
from the front.
These
organizations aim
to provide quality
products and
services to make
this society and
world a better
place.
Risks For the small
business
entrepreneurship
the risk is low as
because they
invest less or
limit of theretheir
investment is not
high so risk for
The risks are
medium because
they are holding
the position in the
market and they
sell the high
volume due to
their brand value.
In this social
entrepreneurship
the risks are not
much high as they
did not concern
about the profit
and they are non
profit
organization.

them is lower but
the competition is
high
Employee
numbers
Employees of the
small business
entrepreneurship
have not more
than 50
employees.
Employees can
1000 but not
exceed the limit
(Burns, 2016. ).
It depends on the
size of the
business.
Structure No proper
structure and they
run on the
individual and
sometimes on the
partnership.
Structure of the
organization is
often complex.
Trustee is the
main person in the
organization.
Growth rate Low, as they have
low investment
and low number
of customer, that
is why they low
growth rate Ms
Rana Harvey set
up the Monster
Group that is
progressed very
fast and certain
skills and
traits of Ms Rana
Harvey have high
contribution to it.
Moderate,
Dependence on
the right
strategies at the
medium level of
enterprise will
grow rapid and
grow annually as
well.
High as they make
large and high
investment
policies and they
also invest in high
tendency they
surely growth as
high rate of profit.

She is highly
passionate and
motivated to
run the business
and as a chemist,
she runs the
business as a
laboratory so that
she can work
Similarities
 Small business, large and social business have a same focus on the revenue generation.
 Satisfaction for the customers is the most important aspect for them
 Small, large and social have risk in their own business.
 Small business and large business are customer oriented
LO2
P3 Mmicro and small businesses impact on the economy.
At the start of 2018 there were 5.82 million small business with 1 to 49 employees having
99.3% of the total business (Cole, 2018. ). SME's account for 99.9% of the business population.
Small and medium enterprises have a very large impact on UK economy as they contribute 47%
in overall growth of UK. SME is a major factor in giving employment to the population which
increases the per capita income and also living standard of the economy. As small industry plays
a vital role in the economy of the Uunited Kkingdom as they help in increasing GDP and
national income of the country. SME account for three fifths of the employment and around half
turnover in the UK in private sectors. Total employment under the and around half of the
turnover was estimated by the UK government at £2.2 trillion (52%). UK's government also
emphasized on starting their own enterprises by giving them start-up loans and also free
investments. The UK private sector business population is made up of 3.5 million sole
proprietorship's (59% of the total), 2.0 million actively trading companies (34%) and 405,000
ordinary partnerships which is (7%) in the UK 2019.
Advantages of the SMEs

1. The SME's together produce among the 60% of the industry in the total industrial output.
2. 40% of the profit is come from the taxes and duties to the UK economy
3. SMEs contribute the high percentage in the development of various sectors like
agriculture, manufacturing, and information technology services.
4. SMEs gives the half of the new employment and help the united kingdoms economy
Disadvantages of the SMEs
1. SMEs face the high taxation issues.
2. SMEs survive need is encouragement and supportive environment in UK.
3. SMEs have been criticized by theretheir staggering bankruptcy rate.
P4 importance of small businesses and business start-ups to the growth of the social economy.
SMEs are the most recognized and the fast growing sector in the UK economy where
start-ups, small business which increase the growth of the social economy which plays vital role
in the economy. In order to maintain and develop the growth of the social economy the startups
and the small business starts with one innovative idea and these ideas is the start and the base of
the small business with this business encouragement. Sometimes the idea of a small business
startups took a jump and comes in the trends and generate higher profits in very short time. SME
business is very close to customers as they reach directly to the customer, they're closer to their
customers. They're more flexible and get more into business. SME business are able to detect
better and take the advantage in the right time of small niches. SME have easy to link the staff
to the company as they have small area and small premises to deal with employees. SME
provide links between other business that they know everyone knows each other better. SME's
are now becoming more and more present in the united kingdom economies. SME have also
contributed in converting the competition in positive manner which will help the in contributing
in the economy as SME is absent in the market then there will be monopoly of large enterprises
which will exploit the customers and will maximize their profits which will not increase the
growth of the economy. Many startups are associated with the different types of the customer
relationship responsibilities for the enhancement of the brand value by solving environmental
and economic problems (Dana, 2018. ). People can use that education in future to get more work
that is also helpful in the economic growth of united kingdom. Apart from this, there are a high

number of startups businesses are established in different industries in the UK, which have high
contribution in the GDP of a country.
LO3
P5 skills of successful entrepreneurs that differentiate them from other business managers.
Skills are the main practice which is must for the small business owner or an entrepreneur
. An entrepreneur must carry some characteristics which are as follows:
 Ability to make and generate new ideas in this an entrepreneur is the individual who
thinks in advance and always creates something new for the market.
 ability to take higher risks
 ability to think beyond
 innovation in regular time
 highly aimed
 always have vision and mission
 management skills related to resources
there are some personal skills of an entrepreneur are following:
 Communication skills is the major set of personal skills where an entrepreneur is needed
to interact with the with numbers of people and these people are such as suppliers,
clients, customers and distributors.
 Negotiation skills are the skills where an entrepreneur can deal with the employees and
the clients.
 Time management is the important to complete the task in time and which makes the
customers happy.
 The leadership skills are major skills which provide more power and employees will be
on the right path with the context of their goal achievement.
skills differentiation between entrepreneur and business manager:
Strategic orientation: An entrepreneur creates innovative ideas and convert those ideas
into strategy according to theretheir vision for the opportunity and that vision of opportunity
brings the growth in the market. While manager utilizes current resources and obtains strategy
for business development manager only implement plans which are Ms Rana Harvey set up the
Monster Group that is progressed very fast and certain skills and
traits of Ms Rana Harvey have high contribution to it. She is highly passionate and motivated to

run the business and as a chemist, she runs the business as a laboratory so that she can work
effectively without getting bored (Hatten, 2015. ). She has self-belief and maintains the
discipline to complete
her tasks. She can work hard can conduct the work single-handedly. Along with this, she can
make the finance of the businesses effectively and allocate to different tasks. She can plan the
future and make strategies deal with risks and run the operations.
Zac Williams is the owner of GradTouch that provides support to the students and provide
consultancy services to the organisations to get skilled employees. He has good communication
skill to get clients and have risk-taking ability to set up the business. Along with this, he has
innovative idea through which he can help the students in finding a good job along with
providing efficient employees for the businesses. He also has high motivation to deal with the
risks and plan the business along with management skills.e given to him by his or her
subordinates.
Management structure: entrepreneur follows flat structure with multiple informal network. In this
structure employees can direct communicate to owner and can give innovative ideas regrading
business development. This structure establishes good relationship between employees and
owner while manager follows formalized hierarchy where employees can't communicate directly
to owner. Manager only follow whatsoever he or she's been guided to do. This idea that
employees give to the superior that can also be used as the plan for theretheir future endeavor if
the entrepreneur finds the stability in that idea. It also determines how the flow of responsibility
and work culture in the enterprise.
Responsibilities: entrepreneur has lot of responsibility regarding the business as entrepreneur is
the main person who created all the plan and policies accomplished by him to set up business or
industry in business market while manager has less responsibility because manager function is to
apply policies which is formulated by entrepreneur for business envelopment. Responsibility is
the major part to handle in the entrepreneur life cycle he has to face lots of problems where he
has to take such responsibility which have lead in managing and motivating to the employees.
These activities of an entrepreneur to include such as he has to take responsibility of the
customer's satisfaction and employees must be satisfied at the job premises.

P6 entrepreneurial personality reflect entrepreneurial motivation and mindset.
Zac Williams is the owner of the GradTouch that provides support and help the students
and al;so provide aid in the form of consultancy service to the other organizations to get skilled
employees in the organization. Which help the organizations and students as well as they get
employment opportunity and organization gets employees according to theretheir requirement.
He has good communications styles and ability to get famalierfamiliar with the clients (Julien,
2018. ). He has also high motivation which helps him to deal with the organization conflicts.
Ms rana Harvey establishes the company which is named as the monster group that is
progressed very fast and put its impact on the market. she runs the business as a laboratory so
that she can work effectively without getting bored. She has self-belief and maintains the
discipline to complete her tasks. She can work hard can conduct the work single-handed.
The five broad personality traits described by the theory are extra-version (also often spelled
extroversion), agreeableness, openness, conscientiousness, and neurotic ism.
The Big five OCEAN are
Openness to experience Openness to experience has been described as the depth and complexity
of an individual mental life and experiences. It is also sometimes called intellect or imagination.
Openness to experience concerns people willingness to try new things, their ability to be
vulnerable and their capability of think out of the box.
The common traits to openness to experience includes
• Imagination
• Complexity
• Insightfulness
• Originality
• Cleverness
• Varied Interest
2. Conscientiousness – it is a personality trait where one person wants to do others work.
Conscientiousness is a trait that can be described as the tendency to control impulses and act in
socially acceptable ways, behaviours that facilitate goal directed behaviour.
The common traits to Conscientiousness to experience includes
• Planning

• Self Discipline
• Ambition
• Control
• Energy
• Hard Work
3. Extroversion – Is a personality factor which characterised by the direction of individual
and interest outside of all, Whichwhich is a fun loving personaltypersonality.
The common traits to Extroversion to experience includes
• Fun Loving nature
• Friendliness
• Talkativeness
• Outgoing nature is a personality trait that it is a grouping of personality it is a construct
that rests on how an individual generally interacts with others
The common traits to Agreeableness to experience includes
• Trust
• Tact
• Politeness
• Cheerfulness
• Lack of confidence
• Tininess
• Self criticism
P7 Examine using relevant examples, how background and experience can hinder or foster
entrepreneurship.
An individual who wants to become a successful entrepreneur or need to develop his own
business require some innovation, creativity and development in a business (Laudano, Marzi and
Caputo, 2018). Skills and abilities of an individual plays an important role to become an
entrepreneur an individual needs required skills that develop new product or policies or build
new innovative ideas that helps business to achieve their goals. Supportive background needs to
be created effectively because that helps an individual to polish his skills and abilities to develop
new plan. An entrepreneur needs support from his family and friends they need to motivate an

individual towards the achievement of goals support bring positivity in an individual helps him
to stand in a market. If family and friends are not giving support he could not be able to work at
its full efficiency & could not be able to give his full efficiency towards the success of
organization. He desired result of its business. Experience also greatly affects the entrepreneur
performance. Past experience makes an individual afraid to start the enterprise whereas good
experience from the past helps an individual to motivate and take risk. Entrepreneurs can be
influenced by four different distinctive economic development, culture, technological
development and education. Which gives an entrepreneur strong and consistent growth. If an
entrepreneur does not have sufficient support from his family (Laukkanen and Tornikoski, 2018.
). An entrepreneur needs to analyse the market situation and develop plans according to the
requirement of market. Competitors needs to be analysed effectively and helps business to
achieve their goals effectively. Business needs to develop new technologies and policies that
helps them towards the success of their business and initiates new technology and development
in an organization. Entrepreneurs needs to develop new thinking and technologies for their
smooth working in a business.
Conclusion
From this study we find that and explained that how entrepreneurs are different from others
and three activities which help the society to grow and small, medium and micro and large
enterprises which help the economy to grow and help in national income. SME to develop and is
of different techniques to establish their business according to their size and capital invested . the
consciousness and skills of the entrepreneur decide weatherwhether the enterprise will be
successful or will be failing to fulfil its objectives. Entrepreneur background and experience can
hinder or foster entrepreneurship.

References
Books and journals
Ayandibu, A. O. and Houghton, J., 2017. The role of Small and Medium Scale Enterprise in
local economic development (LED). Journal of Business and Retail Management
Research, 11(2).
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Cole, R. A., 2018. Bank credit, trade credit or no credit: Evidence from the Surveys of Small
Business Finances. Trade Credit or No Credit: Evidence from the Surveys of Small
Business Finances (July 31, 2018).
Dana, L. P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Fayolle, A., Bettinelli, C., Randerson, K. and Sciascia, S., 2017. Entrepreneurship in Family
Firms, Business Families, and Family Business Groups.
Fayolle, A., Bettinelli, C., Randerson, K. and Sciascia, S., 2017. Entrepreneurship in Family
Firms, Business Families, and Family Business Groups.
Hatten, T. S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Laudano, M. C., Marzi, G. and Caputo, A., 2018. A decade of the International Journal of
Entrepreneurship and Small Business: a bibliometric analysis. International Journal of
Entrepreneurship and Small Business. 33(2). pp.289-314..
Laukkanen, M. and Tornikoski, E.T., 2018. Causal mapping small business advisors’ belief
systems: a case of entrepreneurship policy research. International Journal of
Entrepreneurial Behavior & Research. 24(2). pp.499-520.
Mugler, J., 2017. The climate for entrepreneurship in European countries in transition. The
blackwell handbook of entrepreneurship. pp.150-175.
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).
pp.262-272.
Saleem, M. A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of society and space. 8(1).
Sarma, P. and Borah, B., 2016. A Study on Women Entrepreneurship—Its Management and
Business Problems: An Overview. Journal of Art & Social Sciences. 1(1).
Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC
Press.

Volery, T. and Mazzarol, T., 2015. The evolution of the small business and entrepreneurship
field: A bibliometric investigation of articles published in the International Small
Business Journal. International Small Business Journal. 33(4). pp.374-396.
Yan, J. and Yan, L., 2016. Individual entrepreneurship, collective entrepreneurship and
innovation in small business: an empirical study. International Entrepreneurship and
Management Journal. 12(4). pp.1053-1077.