Entrepreneurship & Small Business Management

This document provides an overview of entrepreneurship and small business management. It covers topics such as types of entrepreneurial ventures, impact of micro and small business on the economy, characteristics of successful entrepreneurs, and more. The document also includes references for further reading.

UNIT 9:
ENTREPRENEURSHIP &
SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Types of entrepreneurial ventures and typologies..................................................................1
P2 Differences and similarity between entrepreneurial ventures................................................2
LO 2.................................................................................................................................................4
P3 Impact of micro and small business on economy...................................................................4
P4 Importance of small and medium enterprise in the growth of social economy......................5
LO3..................................................................................................................................................5
P5. Characteristics, traits and skills of successful entrepreneur..................................................5
P6. Aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset.......7
LO4..................................................................................................................................................8
P7. Background and experience hinder or foster entrepreneurship ............................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship is a process in which launching, designing and making a small business
run in market and the people who run this kind of business are known as entrepreneurs. There are
a lot of risks which an entrepreneur has to make so that they can make the business run. The
report would consist of different types of businesses, typologies and entrepreneurial ventures
(Shava and Chinyamurindi, 2019). There are traits and skills, impact on economy and the
experience help in hindering the foster an entrepreneur.
LO 1
P1 Types of entrepreneurial ventures and typologies
Entrepreneurial organization
There are a lot of changes which have come in the strategies and the policies within the
businesses since they are new to the industry. There are techniques and tools which are used so
that the organization can have a better functioning and achieve their objectives in the market.
 Public Organization
The stakeholders in the organization are not just from within the organization but there
are people from outside as will. The profit in the organization will have to be shared by all the
shareholders and there will be no personal say in the decision making. There has to be an
involvement of all the employees and the shareholders of the company which can create a lot of
conflicts but there will be more ideas which can be generated in this process.
 Private Organization
There are limited shareholders in the company which have a say in the decision making
in the organization so that the organization can have a better profitability (Sozuer, Altuntas and
Semercioz, 2017). There are limited ideas which generate in a private organization and there are
lesser chances of conflicts and the clarity of vision is present.
 Social Organization
There are unlimited shareholders in the company and the profit in this company is not
shared but is used for the benefit of the society which is going to be very helpful. Only the
important investors have a say in the decision making of the company so that they can have a
better functioning for themselves which is going to make the company be productive and achieve
their objectives and goals.
Typology Ventures
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There is a followed trait in industry so that the businesses can grow quickly in the market.
There are different types of ventures which can lead the business to have a higher profitability
which are as follows (Kuckertz and Mandl, 2016).
 Speculative Ventures
The focus of the entrepreneurs is to make the competitors and the investors concentrate
on the innovation, efficiency and creativity which the company is having. There will be potential
of ventures and they make a profit in market because of their purchases.
 Survival Ventures
These kinds of ventures do all the possible factors to gain a profit in market and so that
they can have a long run in market which is there objective. The planning is not for long term but
for short term only so that they can understand the position of the business in market.
 Lifestyle Ventures
To make the customers have a better experience there is a quality and services
improvement so that the company can provide the customers with a better lifestyle so that they
can have a better growth in the future. Drawback of this venture is that there is no focus on the
managerial aspect of the company which can make the efficiency of the organization reduce.
 Managed Growth Ventures
There is a lot of investment which is made in the research and development department
so that they can make the investors and the competition see the potential that the organization has
in market (Anderson and Gaddefors, 2016). The company also invests in training and
development of the employees so that the productivity in the organization can improve.
P2 Differences and similarity between entrepreneurial ventures
Similarities
 All the entrepreneur is on the satisfaction of the customers so that they can grow their
business.
 By using the right strategy and techniques the organizations can get a lot of profit and the
organization will be able to get a lot of customers as well.
 There is a risk factor which all the organizations have to take so that they can have a
better functioning for themselves which is a very essential element.
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 Increasing the productivity in the organization is a very important element which the
company's must have so that they can have a better advantage in market.
Differences
Basis Micro
Enterprise
Small
Enterprise
Medium
Enterprise
Large Enterprise
Time Horizon There is no long
term focus of the
organization but
the focus is only
on the profit
which the
company is
making (Dana,
Grandinetti and
Mason, 2016).
The focus is
increasing the
customer base
by increasing the
productivity in
the organization.
They have a long
vision in the
organization
therefore they
focus on improving
the quality of the
products which the
company is dealing
with in market.
There are a lot of
funds which are
taken by this kind
of enterprise
therefore they
have to focus on
all the strategies
and techniques
which the
company is using
so that there is a
better outcome.
Employee's
Managerial
Focus
There not many
employees in the
organization but
managers who
can help the
company to have
a better
functioning for
themselves.
Hierarchy of
managerial
delegation is
used in this
venture (Dunne
and et.al., 2016).
They have a
handful of
employees in the
organization
therefore they
focus on the
strategies which
the company is
using.
The productivity
of the
organization and
the employees is
in focus in a large
enterprise.
Investment in
Technology
There is a very
little investment
which the
company makes
The focus is
how the
enterprise can
survive in the
To get a higher
productivity and
low employee rate
in the organization
The most
investment of the
company is on the
technological
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in this type of
enterprise.
market therefore
only limited
technology is
got in the
organization.
there is a lot of
investment which
is done in the
company.
aspect of the
company so that
the company can
get a higher
profitability.
LO 2
P3 Impact of micro and small business on economy
There is an impact on the United Kingdom's economy by 47% because of the small and
micro businesses which are present in the country (Yan and Yan, 2016). The employment in the
country is because of the SME businesses in the country which is making the per capita income
of the population increase and there is a better standards of living of the population in the
country which is a great impact. The motivation level in the people of the country is increasing
because there is a lot of growth in the country regarding this factor which is a great impact for a
long run in market (Balachandra, 2019). There are more private organizations in the country than
other companies in market which is a great impact for the country and the country will be able to
have a higher economy in the world. This factor is giving a lot of people employment which is
reduces one big barrier for the government of the country. There are free investments and start-
up loans which are being provided to the people so that they can start their own businesses so
that there is a growth in the country.
It was noticed in 2016 that there is a dependency on the small and medium businesses in
the country for the employment because about 99% of the population got its employment from
this industry. Therefore, the government of United Kingdom is supporting this factor so that they
can have a better population in the country and that can be a great advantage for the country.
There was a growth in the GDP of the country which made the exports and imports in the
country get more inflation and the value of currency of the country increased. Due to the imports
and exports in the country made the country have more currency come in United Kingdom which
was a great deal for the country (Amato and et.al., 2017). There are a lot of varieties which is
coming in the country because of these enterprises which makes the customers get a variety to
select the right brand for themselves. The liquidity of cash in the country will not be present
which will make the country have a better functioning for themselves and the exchange of
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currencies with other countries will reduce. Small and medium enterprises can sell their products
for a higher price which can be a great start for a small business in the country and the
profitability will increase and that can make the living of the population better and the businesses
in the country to grow.
P4 Importance of small and medium enterprise in the growth of social economy
From the past reports on the country it can be understood that the small and medium
enterprises are having a huge impact on the growth of the country because there is a lot of
advantage which the country is getting by motivating the SME in the country and the
opportunities which it is creating for the population of the country people. SME is the backbone
of the country because it is helping with making the living of the people better and the country is
having a lot of profit in the future (du Toit, Pretorius and Rosslyn-Smith, 2019). The customers
are getting a lot of variety of products in the country itself so that they do not have to purchase
products which are outside the country and the economy of the country can develop faster which
is a great advantage for the development of United Kingdom. All the SME in the country have
got e-commerce so that they can have a better functioning for themselves which is going to be
very helpful for the country so that they can provide their services worldwide so that they can
have a better functioning for themselves.
Small and medium enterprises also help the employees of the country to have better skill
and knowledge which is going to make the population of the country have a better personality
and results of the employees will be better. The classes like meddle and upper are also getting
raised because they are having better income level and the standards of the people are getting
motivated to do that work (Mafundu and Mafini, 2019). There is a lot of innovation which is
taking place in the country so that they can have a better functioning for themselves so that they
can have a better market for themselves. There are low chances of mismanagement in SME
which is a great advantage to promote these enterprises as well so that the businesses can have a
better functioning for themselves.
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LO3
P5. Characteristics, traits and skills of successful entrepreneur
Entrepreneurship is all about converting a business idea into a successful business
venture. Entrepreneurs consist of following characteristics, traits and skills which make them
successful.
Characteristic of successful entrepreneur
Characteristics of entrepreneur can be specified as the aspects related to the personality of
an individual which make them successful in the business.
Passionate nature: Entrepreneurs are passionate about the business. Passion for business make
the entrepreneurs successful (Birkner and et.al., 2018). Passion leads entrepreneurs to put cosnit
efforts to go forwards in business operations. Passion of entrepreneurs enables them to focus
over the business objectives with the mindset of never give up in any situation.
Motivated: Motivation is a crucial aspects of entrepreneurs personality. Successful
entrepreneurs also stay motivated in the business activities. Motivation of entrepreneur reflect in
each activity or operations they conduct (Xu and et.al., 2018). Many times' motivation drives the
entrepreneurs to keep working efficiently in whatever operations they conduct.
Future oriented: Entrepreneurs are always keen and excited towards the future. Future oriented
attitude of entrepreneurs make them successful in doing business operations. Future oriented
approach reflects that entrepreneur carry the abilities to observe the needs of society in future
years and based on the needs and requirements entrepreneurs take all the decision of the business
(Doktor and Bui, 2018). For example entrepreneurs Elizabeth Gooch and Tom Mercer were
future oriented in the initial years of business establishment.
Traits of entrepreneurs personality.
Entrepreneurs carry the following traits in the personality which make them successful in
business.
Creativity: Creativity is a crucial aspect of entrepreneurs personality. Entrepreneurs are creative
in nature. They operate business operations with the creative and unique business ideas which
makes them successful in business. Creativity is a crucial aspects of entrepreneurs personalities
as they consist of limited resources which make them motivates to use creative ideas and
techniques that can effectively save the resources.
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Vision: Successful entrepreneur carry the visions behind operating the entrepreneurial business.
Vision is the key that drives the entrepreneurs towards the business operations. Based on the
vision of entrepreneurs they paln all business actions in order to achieve the target and objectives
of business.
Versatility: Entrepreneurs are versatile in nature. Versatility of entrepreneurs make them
successful in business. Versatility denoted with the fact that entrepreneurs can face any business
situation with the positive attitude and mind set. Business sector is such an unpredictable sector
comprises with numerous amount of challenges (Frederick, 2018). Due to versatility
entrepreneur get able to face all the business situations. For example entrepreneurs Elizabeth
Gooch and Tom Mercer faced plenty of failures and scary situation in the initial stages of
business but both the entrepreneurs face d all the situations with the motivated style which made
them successful in business.
Skills of entrepreneurs
Entrepreneurs carry the following mentioned skills which make them successful in
business.
Time management skills: Time management skills is among the crucial skill entrepreneurs
posses. Time management play crucial role in delivering the objectives of business.
Entrepreneurs set a specific time to complete the task and plan all activities according to such set
time.
Strategic Thinking: Entrepreneur posses the skills to think strategically for business. Strategical
thinking involve critical analysis in respect to taking decisions (Kadir and et.al., 2018).
Entrepreneurs make all the decisions precisely based on the strategical thinking which enables
entrepreneurs to analyse every aspect of business decision-making process.
Communication skills: Communication skills play crucial role in the success of entrepreneurs.
Effective communication skills of entrepreneurs enables them to interact with all the
stakeholders associated with the business venture. Communication skills also support
entrepreneurs in dealing with all the respective issues attached with the business organisation.
All the above aspects project about the personality, skills and trait of entrepreneurs that
make them successful in business.
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P6. Aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset
Entrepreneurs are successful due to certain reasons which make them significant in
corporate sector. Following aspects of entrepreneurial personality that reflect the motivation and
mindset of entrepreneurs.
Never give up attitude: Successful entrepreneurs carry the attitude of never giving up in any
business situation. Never giving up attitude is a huge personality trait entrepreneurs possess
which also make them successful in business. Motivation level and mind set also play crucial
role that impact over never giving up nature of entrepreneurs (Wegner, Faccin and Dolci, 2018).
This aspecst is more like an approach towards achieving goals of business operations. Corporate
sector is among the highly competitive sector which also causes to multiple failures in business
operations. This attitude of entrepreneurs make them successful in business sector. High
motivation and strong mind set is a key behind such a mind set of entrepreneurs which makes
them successful corporate entity's.
Problem solving skills: Corporate sector is among the major fluctuation sector as the practical
situation changes in every point of time which also influence the business decision-making.
Problem solving skills also denoted to high motivation and strong mind set of entrepreneurs
(Ribeiro-Soriano, 2017). Due to high motivation level and strong mind set entrepreneurs take
effective decisions at every point of business life cycle which enables entrepreneurs to take
crucial decision and profitable decisions at all the point of business life cycle. Analytical skills
play crucial role in taking decisions in regards to solving issues and problems.
All the above aspects of entrepreneur personality reflect the motivation and mindset of
successful entrepreneurs.
LO4
P7. Background and experience hinder or foster entrepreneurship
Entrepreneurs utilise the personal background and experience in conducting business
operations. Impacts of background and experience of entrepreneurs can be projected in the
following manner.
Policy Formation: Business organisations highly depends upon the formation of policies and
strategies in order to gain competitive advantages out of the business operations. While drafting
policies for developing business venture and also to start the new project entrepreneurs utilise the
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personally and professional experience and also the personal background in order to build
suitable strategies and polices for the business. For example
Strategy implementation: Background and experience of entrepreneurs also reflect during the
implementation of strategies framed business development and growth (Saleem, 2017). Based on
the personal experiences successful entrepreneurs implement all business policies. Based on the
experience entrepreneurs select potential channels that can effectively interact with target
customer's. For example
Improve decision-making: Background and experience of entrepreneurs supports thorough out
the journey of entrepreneurship which make them successful business persons (Visser and et.al.,
2019). Background and experience guides entrepreneurs about the practical situational that needs
to deal. Addressing practical situation correctly play significant role for entrepreneurs in dealing
with all the issues and hurdles involve in the practical situation of the business. For example
entrepreneurs like Elizabeth Gooch and Tom Mercer comes from poor background which also
causes to multiple failures in business. All the experiences and background of both the
entrepreneurs supported them to improve the analytical skills which also improved the decision-
making of both the entrepreneurs.
Improve communication skills: Background and experience put a huge impact over the
communication skills of individuals. Entrepreneurship is all about communicating the business
idea effectively and also the suitable advantages of the idea (Storey, 2016). Background and
experience of entrepreneur put impact over the communication skills which also influence the
approaches of entrepreneurs in dealing with all the associated stakeholders of company. For
example entrepreneurs Elizabeth Gooch and Tom Mercer background and experience has
improved the communication skills of both the entrepreneurs which has also enabled them to
deal effectively with all the associated stakeholder of the company.
All the above impacts projects about how background and experience of entrepreneur
hinder and foster the characteristic of entrepreneurs in operating successful business ventures.
CONCLUSION
This report concludes entrepreneurial ventures. Relationship between entrepreneurship
ventures and typologies of entrepreneurship. This report has also projected the differences and
similarities between entrepreneurship ventures precisely. Impacts of micro and small business on
the economy has also projected in this report. Impacts of small business and business set up like
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growth opportunities, employment opportunities and other impacts has also projected in this
report. Different characteristic, traits and skills like communication skills, decision-making skills
and other aspects like creativity has also projects in this report. Aspects of entrepreneur
personality reflect the motivation and mindset of entrepreneur has also projected in this report.
Impacts of background and experience over communication skills, decision-making skills and
other skills has also projected.
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REFERENCES
Books and Journals
Anderson, A.R. and Gaddefors, J., 2016. Entrepreneurship as a community phenomenon:
reconnecting meanings and place. International journal of entrepreneurship and small
business. 28(4).
Balachandra, L., 2019. The Improvisational Entrepreneur: Improvisation Training in
Entrepreneurship Education. Journal of Small Business Management. 57. pp.60-77.
Birkner, S and et.al., 2018. Women's entrepreneurship in Europe: Multidimensional research
and case study insights. Springer.
Dana, L.P., Grandinetti, R. and Mason, M.C., 2016. International entrepreneurship, export
planning and export performance: evidence from a sample of winemaking
SMEs. International Journal of Entrepreneurship and Small Business. 29(4). pp.602-
626.
Doktor, R. and Bui, T., 2018. The symbiotic relationship of entrepreneurship and information
technology. Int. J. Entrepreneurship and Small Business. 33(4). p.467.
du Toit, A.C., Pretorius, M. and Rosslyn-Smith, W., 2019. Small, medium and micro-
enterprises’ distress and factual evaluation of rescue feasibility. The Southern African
Journal of Entrepreneurship and Small Business Management. 11(1). pp.1-10.
Dunne, T.C and et.al., 2016. The impact of leadership on small business innovativeness. Journal
of Business Research. 69(11). pp.4876-4881.
Frederick, H.H., 2018. The emergence of biosphere entrepreneurship: are social and business
entrepreneurship obsolete?. International Journal of Entrepreneurship and Small
Business. 34(3). pp.381-419.
Kadir, A.R.A and et.al., 2018. The influence of intellectual capital and corporate
entrepreneurship towards small and medium enterprises’(SMEs) sustainable competitive
advantage: building a conceptual framework. In Proceedings of the 2nd Advances in
Business Research International Conference (pp. 67-77). Springer, Singapore.
Kuckertz, A. and Mandl, C., 2016. Capturing the complexity and ambiguity of academic fields:
Determining consensual definitions for small business research, entrepreneurship and
their shared interface. In Complexity in Entrepreneurship, Innovation and Technology
Research (pp. 417-438). Springer, Cham.
Mafundu, R.H. and Mafini, C., 2019. Internal constraints to business performance in black-
owned small to medium enterprises in the construction industry. The Southern African
Journal of Entrepreneurship and Small Business Management. 11(1). pp.1-10.
Ribeiro-Soriano, D., 2017. Small business and entrepreneurship: their role in economic and
social development.
Saleem, M.A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of society and space. 8(1).
Shava, H. and Chinyamurindi, W.T., 2019. The influence of economic motivation, desire for
independence and self-efficacy on willingness to become an entrepreneur. The Southern
African Journal of Entrepreneurship and Small Business Management. 11(1). p.12.
Sozuer, A., Altuntas, G. and Semercioz, F., 2017. International entrepreneurship of small firms
and their export market performance. European Journal of International
Management. 11(3). pp.365-382.
Storey, D.J. ed., 2016. Entrepreneurship and New Firm: Theory and Policy. Routledge.
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Visser, T and et.al., 2019. SMALL BUSINESS CONSTRAINTS: THE INFLUENCE OF
TIME. Academy of Entrepreneurship Journal. 25(4).
Wegner, D., Faccin, K. and Dolci, P.C., 2018. Opening the black box of small-firm networks:
governance mechanisms and their impact on social capital. International Journal of
Entrepreneurship and Small Business. 35(4). pp.559-578.
Xu, N and et.al., 2018. Contributing forces in entrepreneurship research: A global citation
analysis. Journal of Small Business Management. 56(1). pp.179-201.
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