Entrepreneurship and Small Business Management

This document provides an introduction to entrepreneurship and small business management, including the different types of entrepreneurial ventures and their relations with entrepreneurship typology. It also discusses the similarities and differences between entrepreneurial ventures and the importance of small business and start business for the growth of the social economy. The document includes relevant data and statistics to illustrate how micro and small businesses impact the economy. It also explores the characteristics and skills of successful entrepreneurs that make them different from business managers.

Entrepreneur
And
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1- Different types of Entrepreneurial Ventures and their relations with entrepreneurship
typology.......................................................................................................................................4
P2- Similarities and Differences between entrepreneurial ventures...........................................6
TASK 2............................................................................................................................................8
P3- Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on economy. ...................................................................................................................8
P4- Importance of small business and start business for growth of the social economy............9
TASK 3..........................................................................................................................................10
P5- Characteristics and skills of successful entrepreneurs which make them different from
business managers ...................................................................................................................10
P6- Aspect of Entrepreneurial Personality................................................................................13
TASK 4..........................................................................................................................................14
P7- Background and Experience can hinder or foster Entrepreneurship..................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneurship is an art of innovative mindset which include designing, launching and
growing a new business in competitive market(Albort-Morant and Ribeiro-Soriano, 2016). It is
defined as the capacity and willingness to invent, organize and manage a business ventures. In
present scenario, the innovative as well as analytical skills are highly required in making
decision for betterment of a business. There are varied range of opportunities that comes in way
of an entrepreneur. Nowadays, most of the successful entrepreneur grows business with joint
ventures at very initial stage. In the present report, it is necessary that there should be critical
analysis of relationship between different typology and inter related entrepreneurship. Also, there
are some importance of small and start-up business, and different traits that are necessarily
required by successful entrepreneur for attaining desired objectives of business.
TASK 1
P1- Different types of Entrepreneurial Ventures and their relations with entrepreneurship
typology
An entrepreneurship is defined as the ongoing process of new innovations in product,
ability of taking huge financial risk and systematically operating the daily business activities.
The main aim of entrepreneurs is to sustain their business in competitive market at any type of
industries. As well as the major responsibilities of entrepreneur is to incur revenues from
business and contribute in the development of nations. Majorly there are four type of
entrepreneurship like social, large company, scalable start-up and small business
entrepreneurship. These entrepreneurship ventures are briefly mentioned under beneath:
 Large Scale Enterprise: These type of business have definite loop which include
sustaining innovations, offering new goods that revolve around the core product
consumed by potential buyers. The firm need to critically analyse the internal as
well as external environment which have impact on business activities. The

entrepreneur have to think uniquely for developing goods and services that
satisfies the customer. Some of the example of large scale business are Infosys,
Google and Microsoft(Ayala and Manzano, 2014).
 Small Business Enterprise: In this type of entrepreneurship, the main focus on
businessman is to grow their business in competitive market. Generally, the
entrepreneur have their business currently running and they do not have much
number of employment in the firm. Also they have more number of competitors
in specific industries. Also the funds are collected through various sources for
growing the business. Some of the small businesses are customised designer
clothes, production of Eco- friendly and stationary products for
consumers(Brustbauer, 2016).
 Scalable Start-up Enterprise: This type of entrepreneurship include
development of new product that attract the potential buyers toward the business.
The scalable business also known as start-up entrepreneurship. In present context,
the government are introducing various schemes that will help entrepreneur to
sustain their business at start-up platforms. As unemployment are increasing day-
by-day in many countries and entrepreneur are key aspect of giving employment
to desired individuals. The focus of entrepreneur is to gradually grow their
venture by fulfilling the demand of consumers. Some of the example of scalable
business are bulb, monsus product and elder technologies in UK.
 Social Enterprise: This type of entrepreneurship involve the goods and services
that satisfy the need of society. The aim of these entrepreneur is to provide an
clean and healthy environment to target market. These type of business focus on
estimating the price of goods in such a manner, that consumer can accordingly
purchase the product. Accordingly, the life style of consumer will raised in
current society. Some of the example of social enterprise are Cafedirect,
Caledonia Cremation, Company Shop and Amey are the top most influential
social enterprise of UK (2018).
The above enterprise play an important role in systematically operating business
activities in competitive market. The typology have huge influence the business ventures. These
essential typology are mentioned below:

Typologies of entrepreneurship ventures-
This entrepreneurship typology is also known as sustainable ventures, that have been
based on different diversification like survival, lifestyle, managed growth and high growth.
These characteristics have huge impact on growth of business(Donnellon and et. al., 2014). All
these traits are discussed below:
Typology Relationship
Managed Growth Venture Most of large and small business, focus on
managed growth venture to expand business at
international platform. The entrepreneur can
easily adopt these typology for creating image.
High Growth Venture The social and large scale firm involve these
typology in implementing new technologies for
developing quality product.
Sustainable Venture The scalable and small business adopt this
typology for creating innovative product to
grab the attention of potential customer.
Lifestyle Venture The small and social business use this typology
to produce goods that will raise standard of
target society.
P2- Similarities and Differences between entrepreneurial ventures
There are some aspects which vary in types of entrepreneurial ventures in growing
business in any industry(Fayolle and Gailly, 2015). Nowadays, every firm have to give some
profit in CSR activities that are been conducted by non-government groups to improve the
lifestyle of society. As every nations wants that there should be economic development across
the globe. Mentioned below are some differences and similarities in types of entrepreneurial
ventures:
Difference:
Large Scale Enterprise Social Enterprise

 The aim of entrepreneur is to create
some unique feature in core product,
that will help in grabbing the attention
of potential buyers.
 The entrepreneurs primarily focus on
improving the standard of living of
target consumer.
Scalable Enterprise Large Enterprise
 These are the start-up firms who have
currently introduced their product in
small scale industries.
 These firms are popularly known firm
in high competitive market. They have
attractive goods and offers for their
target base.
Small Business Enterprise Scalable Enterprise
 These type of business are currently
growing in competitive market. Also
they have around 50 employee
working in the firm.
 This is start-up firm where business
sustain through joint venture and
allocations of funds rely on friends.
Social Enterprise Small Business Enterprise
 There are more than two groups who
collaborate with large scale industries
for welfare of society.
 Sometimes there are single or more
than one individual for operating
business activities. Also the firm give
some profit to CSR programmes.
Scalable Enterprise Social Enterprise
 These enterprise give emphasis on
earning profits by increasing customer
 The main objectives of these enterprise
are development of society, by proving

relationships. Generally enterprise take
high risk while growing business.
clean and healthy environment to the
society. These short term goal could be
achieved by producing ozone-friendly
goods for target consumer(Fayolle and
Liñán, 2014).
Similarities:
There are some similarities between these entrepreneurial venture that are been discussed
under-beneath:
 The small, large, start-up and social enterprise focuses on attaining creating a
value in target market.
 These venture aim at improving the development of society at national level. Also
the economic condition could be changed at international platform. So that there
is unique identity of the business venture at overseas.
 In current trend all these firms aims at producing quality goods and services for
retaining the target customer. For achieving this objective, most of the
organisations conduct critical market analysis, for identifying the demand of
consumer and satisfying by offering quality goods.
 These firm gives contribution in employing skill individual who are need for job.
Also, most of the banks are providing loans to women entrepreneur who wants to
grow and expand her business.
TASK 2
P3- Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on economy.
Most of the micro and small business have huge influence on growth or decline of
economy of any nations(Lechner and et. al., 2014). It is said when firm have huge brand value
and image in competitive market, then only the foreign investors show interest in purchasing
market shares. The small and micro scale business helps government in initiating schemes which
are beneficial for both skilled individual and organisations. Henceforth, result in improving
labour turnover rate of specific industries in which the firm is growing business. The

entrepreneur of these firm take financial help from their close ones or through bank loans. They
are sole owner of their business. SME's focuses on sustaining their business at competitive
market. The major objective of the enterprises are to generate profit and increase consumer base.
In present context most of the entrepreneur are providing customised quality goods to their
potential buyers.
From above graphical representation, it has been analysed that around 88% (0-9 scale)
and (0-4 scale) micro as well as small business have highly contributed in the development of
country. While remaining 12% large scale business have less contribution in overall
development of UK.
P4- Importance of small business and start business for growth of the social economy.
The small and medium scale industries are considered to be a major part in growth of
economic stability in the nations(Obeng and et. al., 2014). As they are considered to be backbone
in giving employment and uplifting the standard of society. There are several programmes that
have been initiated by government in order to provide safe environment to the society. Some of
the key factors that have been considered in growth and development of society. The essential
factors are mentioned below:
Innovations: This aspect include generations of unique idea that help in improvement of
skill in an individual. In context with small and medium(SME's) industries, the entrepreneur
prime focus is on generating new products that will grab attention of potential buyers. Also

render quality service when the visit the stores or websites. Through launch of new attractive
product, the firm can create a tough competition for rivalries. In society point of view, the
knowledge and consumption of goods, will automatically generate a spark to adapt lifestyles that
could help in increasing standard of living. Henceforth help in raising the growth of society in
target market. With the advancement of technologies, the market research could effectively take
place by entrepreneur, in seeking information about the preference of customer.
Employment generations: This factors open the wider area for capable and skilled
labour that are been unemployed due to any reason in society. Many government focuses on
providing employment to talented youth, who are able to get job in government sectors. In this
regards small and micro business plays an essential role in giving opportunities to all such skilled
candidate who desired to pursue their career in any sectors. These initiatives taken by
entrepreneur help the government in removing poverty at some extent from the nations.
Standard of living: The standard of living is raised when the basic needs and demand of
society are been fulfilled by the firms and government. As per current scenario, the society have
developed themselves at almost every level for increasing their standard of living. The small and
micro business could produces quality goods with an estimated budget, so that the target
consumer actively purchase the product. Also they should timely take feedback from consumer
to improve the customer base. It is said that the prime objective of every firm is to keep customer
at top most priority, in order to gain profit in specific industries(Wennberg and DeTienne, 2014).
Developing interpersonal relationship:The development of relationship have both
positive and negative impact on the image of business at market place. The small and medium
scale business can initiate programmes that help in having effective communication with target
market. Also help in bringing awareness in society about product and services that are offered by
the firm. This relationship will help in growing business effectively and increasing economy of
scale of the nations.
TASK 3
P5- Characteristics and skills of successful entrepreneurs which make them different from
business managers
A successful entrepreneur is the one who have an ability to take high risk every day to
grow their business. Also the basic skills needs to be required for attaining competitive

advantage in any industry(Omri and et. al., 2015). The entrepreneur have an impactful role in
managing, organising and effectively operating business activities in any organisation or firm.
The operational as well as managerial functions have huge influence in growth or decline of
business. There are various traits and skill that makes an entrepreneur successful. Some of these
skills are high risk taking capabilities, self-discipline, integrations, persistence, clear vision about
goals and action oriented which should be inculcated by entrepreneur. In the present report, the
successful entrepreneur taken are Bill Gates and Peter David Jonas.
Bill Gates- He is the principle founder of Microsoft Corporation. He is an American
business magnate, investor and great humanitarian. In 2014 , William Henry Gates III, has held
the positions of CEO, chairman and chief software architect. Also he was the largest individual
shareholder across the globe. He used to develop software for the IT companies(Ramadani and
et. al., 2015).
Peter David Jones- He is British entrepreneur and have interest in development of
computer, television and media business. He was appointed as Commander of the Order of the
British Empire(CBE) in 2009. He is considered to be the ambition ambassador for the business
software company.
Peter David Jones Bills Gates
Skill  Communication- For
successful growth,
communication is key
ingredient in
collaborating every
employee in the firm
 Motivators- There are
various methods of
motivating workforce.
The motivation could
be given by
performance appraisal.
 Focused- The focus of
Bill Gates was to hire
skilled applicant , who
have immense
knowledge of software
 Intelligence- The IQ
factor is very high due
to updation of
knowledge . He used to
grab informations from
every platforms.
Traits  Innovation- Peter Jones  Innovation- Bill Gates

used to have effective
communications with
corporate client.
 Feedback- Each
member give emphasis
on taking feedback
from consumer.
believed that there
should be some
software which could
be used in creative
applications.
 Experimental- The
technical employee
used to test the
software, so that it
could operate
successfully.
Characteristics  Team player- Peter
Jones focuses on
engaging each
employee as a unit. So
that they can produce
quality product.
 Leadership style- He
use to follow
participative leadership
style, that helps every
member to build
cordial relationship
with each other in a
team(Volery and
Mazzarol, 2015).
The major difference between successful entrepreneur and business managers are:
Basis Successful Entrepreneur Business Manager
Status The entrepreneur are the sole
owner of their business. They
have their own plan for
running their business
venture.
They are the employee of any
firm or organisation. Their
duty aim of operating daily
business activity effectively.
Focus The aim of entrepreneur is to The focus of manager is to

create an innovative product
and launch in target
marketplace. So that the
customer could automatically
attracted to the product and
services.
generate more profit margins.
So that they are able to create
more brand image in
market(Rey-Martí and et. al.,
2015).
P6- Aspect of Entrepreneurial Personality
The personality of entrepreneur can be analysed, through various models that are been
utilised in making decision-making process. It is necessary that each businessman should possess
skills that could be helpful in effectively operating business activities(Sahut and et. al., 2014).
The successful entrepreneur uses OCEAN model in growing their business. Also to make
improvement in their traits. There are five components of personality that are openness,
conscientiousness, extraversion , agreeableness and neuroticism. These components are
mentioned under-beneath:
Openness- This component include creative, imaginative and emotional skills used for
developing an experiences in an individual(Tehseen and Ramayah, 2015). The creativity
inculcated within oneself, to develop a unique art or goods that will be highly appreciated by
other individual. It is necessary that individual should be self motivated to develop any kind of
product. In context of entrepreneurial personality, the openness is the key factor in successful
growth of business. Both Bill Gates and Peter David Jones, aims in effectively communicating
with other members in the firm.
Conscientiousness- This factor showcase the level of self discipline and strive for
achievement taken in consideration outside measures. This component revolves around people
monitor, regulate and guidelines required for operating work. Majorly there are two type of
people who are associated with this components according to leadership style. In regards with
entrepreneurial personality, both successful entrepreneur follows low conscientiousness that
include flexibility and spontaneity in achieving the desired objectives.
Extraversion-This components includes characteristics like sociability, talkativeness and
high amount of emotional level that are adapted by an individual. These type of people
energetically communicate with other group. They easily got indulge with societies. If it is talked

about Bill gates, he is high in extraversion as he easily got engage in communication. On other
hand Peter David Jones, are less in extraversion due to failure he faced in his career ladders.
Agreeableness- This type of people get easily agree task that are been offered to them at
every situation. This kind of personality trait include trust, kindness, affections and other
behaviours. These kind of peoples are highly motivated, easily get engage in a team, create
mutual understanding and relationship with other individual in a society or any firms. When
talking about Bill Gates and Peter David Jones, they satisfactorily agree to the practises that are
been discussed by their management teams, in order to generate market profits.
Neuroticism- This traits are characterised by different mood swings that are generally
inculcated in each individuals. Basically there are two type of neuroticism which are high and
low and these traits vary from person to person working in any organisation. When talking about
Bill Gates and Peter David Jones, both are ranked low in neuroticism as they are emotionally
stable, easily manage the work and have less stress about the brand image in industry. They are
very helpful in mentoring to their subordinate in work culture(Taneja and et. al., 2016).
Source- Ocean Model, 2019

TASK 4
P7- Background and Experience can hinder or foster Entrepreneurship
Entrepreneurship is defined as the ability and willingness to develop, operate, manage
and monitor the business activities, with the aim to achieve more revenues in target
market(Siegel and Wright, 2015). Entrepreneurship is combined with effective resources like
land, labour, equipments, raw materials and funds that are required to produce an innovative
quality goods for growing business. There are various traits and skills that help Bill Gates and
Peter David Jones, to make decision that are helpful in operating activities. The main
characteristics which successful entrepreneur inculcated is high risk taking capabilities that helps
in foster the business. The background of entrepreneur include two important aspect like family
and education that helps in sustaining and growing business in competitive market. These aspect
are mentioned below:
Family Background: This aspect have an influential role in lives of Bill Gates and Peter
David Jones, while running their business ventures. The motivation from family members at
initial stage helps in fostering their business.
Educations: The education has given top most priority with other skills in an individual.
In current scenario Bill Gates and Peter David Jones are successfully growing their business.
Sometime education knowledge also them help in taking decision for fostering the
business(Spence, 2016).
CONCLUSION
As per above detailed report, it has been analysed that there are varied range of
entrepreneurial ventures which are directly connected with business typologies. These business
ventures, helps entrepreneur to accordingly make decisions that are beneficial for growing
business. Thereafter, there are several traits identified for becoming successful entrepreneurs. It
helps in creating image in target marketplace. Also, there are statistical informations used for
analysing the contribution made by small and micro business ventures in development of UK.
Henceforth a similarity and differences is viewed among successful entrepreneur and business
manger.

REFERENCES
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