Entrepreneurship and Small Business Management: A BTEC Report

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UNIT 9: ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT (BTEC)
Student Name:
Student ID No:

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Table of Contents
Introduction.................................................................................................................................................3
Section 1......................................................................................................................................................3
Entrepreneurial Ventures and concept of entrepreneurship.....................................................................3
Key ventures that entrepreneurs will engage in.......................................................................................4
How these ventures related to entrepreneur topology..............................................................................4
Examples of Similarities and differences among businesses usually setup and run by entrepreneurs......5
Table of assessment.................................................................................................................................6
Section 2......................................................................................................................................................6
Businesses segregated into micro and medium sizes...............................................................................6
How micro and small businesses can impact the economy......................................................................7
Significance of business start-ups to growth of the social economy........................................................7
Statistics of start-ups in the UK...............................................................................................................8
Section 3......................................................................................................................................................9
Section 4....................................................................................................................................................11
OCEAN Model......................................................................................................................................11
Recommendation and Conclusion.............................................................................................................12
References.................................................................................................................................................14

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Introduction
This report has been created to understand the concept of entrepreneurship and small business
management. The organisation has asked for preparation of a report for learning from the
information against on the seminar. There are various topics that the organisation has for briefing
to the colleagues and all these topics have been included into the report. These are various types
of entrepreneurial Ventures and their relationship with the entrepreneurship. The similarities and
differences among the entrepreneurial Ventures have been explained.
Entrepreneur is a person who begins and runs and organisation with restricted resources and
planning. He is accountable for each of the risks and rewards of the business venture (Deeds,
2015). The venture is generally of a new item or service rather than a pre existing business
model.
These entrepreneurial ventures focus on high income with matching high level of risk and
uncertainty. The entrepreneur has to take risk in terms of the financial security and job, using
efforts and time along with the capital on venture where there is no certainty. He has to arrange
for required capital, raw materials, the site for operation and talented staff. The marketing, sales
and distribution are various other elements which have to be under the control of entrepreneur
(Schwienbacher and Larralde, 2010). Even if the entrepreneur outsources a few of these
functions, the risk still lies with him. This risk taking capacity makes entrepreneurship different
from inheriting for operating a pre existing business, working under any entrepreneur for a
salary, acting as an agent for sale of already available products or services like a franchisee.
Section 1
Entrepreneurial Ventures and concept of entrepreneurship
The entrepreneurial Ventures have their focus on latest, innovative offerings. Entrepreneurship is
all regarding success from failure, risk and ambiguity, embracing these all and even learning
from them. The entrepreneurial ventures are the ideas of the businesses where new item has to be
created or new service has to be provided (Frederiksen et al., 2016). These ventures are of four
kinds on the basis of various criteria like management style, orientation, annual gross, time
Horizon, management focus, structure, rewards, exiting approach etc. In case of a small

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organisation, there is expectation of constant profitability with limited growth whereas in case of
entrepreneurial ventures, the focus is on quick growth and huge returns. Therefore the
entrepreneurial ventures usually have effect on the economies and societies in a great way. These
can also impact on various factors like job creation. The example of entrepreneurship would
involve manufacturing of any innovative goods, herbal shampoos for which there is need for a
patent to be taken, and marketing has to be done by the channels of sale which are used in
entrepreneurship. However, trading of products such as purchasing huge lots of branded
shampoo at the wholesale rates and then selling them at retail shops or carrying out online sales
would not be termed as entrepreneurship.
Key ventures that entrepreneurs will engage in
The entrepreneurs engage in building new businesses that boost the progress in societies all over
the world. An entrepreneur makes use of mix of Technology and innovation to encourage latest,
new, successful way of activity in all areas of life. The capable entrepreneur understands how to
recognise from actual impact of opportunity that has the potential of becoming a successful
venture (Durman, 2011). The entrepreneur would engage into those ventures which have
attractive potential to be successful. Entrepreneur has the capacity of describing the valuable
contributions of a venture and build-up the design of business model which can be e maintained
up through competitive advantage.
How these ventures related to entrepreneur topology
There are different kinds of entrepreneurship in which an entrepreneur can get engaged. These
entrepreneurship define the kind of entrepreneur, an individual is. Below are those entrepreneurs:
i. The sceptical entrepreneur: This entrepreneur considers the success of other people and
quickly starts questioning it. This type of entrepreneurs will look for the lucky stars and our
sceptical of it. They believe that it is not possible to be successful without each of the stars
falling into place (Grimm, 2011).
ii. The Copycat entrepreneur: This entrepreneur looks at the success of other people and
imitates it exactly. The web pages the same, business cards are the same and the way of
presenting is exact copy of a leading Organisation in the industry.
iii. The research entrepreneur: this kind of entrepreneur likes to learn and carries out research of
each situation and the result for strategies to begin or expanding a business.

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iv. The determined entrepreneur: These entrepreneurs find value in entrepreneurship and field
that success would be there without any imitation. Please focus on doing everything that can
be done for starting or expanding the business.
v. The complete entrepreneur: This entrepreneur has been facing each of the stages of
entrepreneurship and therefore he owns a business with success in it. The complete
individual would have to focus on stealing the organisation and maintaining a Legacy that
goes beyond the lifetime (Grimm, 2011).
vi. Serial entrepreneur: A serial entrepreneur is an individual who continuously brings up latest
ideas and begins with fish businesses.
vii. A typical entrepreneur: An entrepreneur who will usually bring up one Idea, start the
organisation and observe it through and play a significant role in daily functioning of the
stated organisation.
viii. Social entrepreneur: An entrepreneur who sets up and Enterprise with the purpose to resolve
social issues or for developing, funding and implementing solutions for environmental,
cultural or social changes (Jilinskaya-Pandey and Wade, 2019).
ix. Female entrepreneur: On the basis of segregation of gender, there can be male entrepreneurs
as well as female entrepreneurs. The female entrepreneurs resume holding around one third
of the entrepreneurs all over the globe.
Examples of Similarities and differences among businesses usually setup and run by
entrepreneurs
Each entrepreneur is different and as per research there are few characteristics that are there in
both men and women entrepreneurs. There are similarities as well as differences among them.
They might be similar in terms of democracy and psychology however female entrepreneurs
have a tendency to pursue degrees in Liberal Arts rather than areas such as Engineering or any
technical discipline. Females are considered to be highly sensitive to men in terms of the non-
financial problems. The decision making style of both is different as men have a tendency of
making cricket decisions however women need additional time. The male and to produce less
stress on ensuring that costs are within control and bring in higher profits however women try to
contribute socially and focus on quality (Michailidis and Banks, 2016). Similarly in terms of
financial risk men can take more risk than women. Women feel that good relations with workers
are important however men have a tendency of being highly task-oriented.

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Table of assessment
Male Entrepreneurs Female Entrepreneurs
Decision Making is simple trouble in Making Decisions
Venture lays stress on Economy and
Cost (D’ Almeida, 2011)
Venture lays stress on Social involvement and Quality
ready to capture Financial Risk further traditionalist in terms of Financial Risk
Task Oriented Management Manages by building good relations with workers
Mostly involved in businesses like
manufacturing and construction
Mostly involved in businesses like small retail and
service orientation
The examples of renowned entrepreneurs comprise Caterina Fake, Bill Gates, Arianna
Huffington, Mark Zuckerberg, Steve Jobs, and Pierre Omidyar.
Section 2
Businesses segregated into micro and medium sizes
As per the size of entrepreneurship there are four types:
 Small business entrepreneurship: at present there are many entrepreneurs than start-ups in the
UK which are small organisations. This would be the benches which usually are unable to
attract venture capital and therefore the funding of the organisations is through friends,
families or small term business loans.
 Scalable start-up entrepreneurship: these entrepreneurs between organisations with the
perspective in mind that their vision could transform the world. They look for investment
from similar financial investors who are termed as venture capitalist (Kim and Kwon, 2018).
The job is to look for scalable and recurring business model and as soon as that is achieved
then the focus on scale needs additional venture capital for encouraging quick expansion.
 Large company Entrepreneurship: the large companies have finite life cycles. Please expand
by sustaining innovations from our providing latest goods bringing variations to their key
products and transforming according to the changes in the customers’ needs and preferences.

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 Social entrepreneurship: these are the innovators which letters on creation of goods and
services for resolving social issues or requirements. However they are different from the
scalable start-ups as the aim to make the earth as a better place but the scalable start-ups
focus on getting market share and creating wealth for the entrepreneurs.
How micro and small businesses can impact the economy
The small organisations can make a big impact on the economy. A few times the smaller
organisations come out from great ideas which no one else believes in. There are huge
companies which started up grudges and this is how there was making of Disney, HP, Amazon,
Microsoft, Apple and even Google. All of the entrepreneurs had innovative idea in place in
which not everybody believed. In lots of cases the true innovators have to you believe in
themselves initially and then there has to be focus on proving the idea so that everybody else can
believe in it (Kirby, 2016). The small businesses make huge impact because they create use
varieties of new employment opportunities.
In UK the stability of the country is to a great extent predicated on a stable economy and the
financial strength which is achieved from small businesses. The small organisations act as engine
of development which help the government and citizens of the nation to get the goods and
services which are required for growth. Also these organisations let the individuals with great
ideas to act upon them and turnout their vision into reality.
Significance of business start-ups to growth of the social economy
The start-ups assist in expansion of the economic activity levels of the country which is
important for expansion of the economy to create job prospects. Every year there are many
citizens who join the civilian labour force and therefore these start-ups help in accommodating
these new job seekers. It helps in improvement of the technology advantage of the country for
future growth of economy. The countries level of wealth is improved and government gets more
ways of generating revenue. All this revenue generation and development leads to Welfare and
different citizen and development programs created by the government. In case there is no
innovation then there will be degeneration of the capitalist system therefore start-ups are useful
in creating great and effective research and development, which is important in terms of political
philosophy of wealth creation. With the highest number of start-ups, the economy becomes
healthier.

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Statistics of start-ups in the UK
As per Bounds (2017), there are lots of start-ups coming up in the UK and in the year 2016 there
around 60,000 organisations newly setup which was much more than the previous year. By any
start-up coming up, there are many benefits to the economy. These benefits include the increase
in the employment opportunities for people. It also helps in enhancing the revenue for the
economy and generating mode of wealth for the nation. The Government of the UK is planning
to limit the tax breaks for investment and suede impact the enterprise Investment Program of UK
thus persuading the will the investors to put in billions of amounts into small organisations. With
the expansion of businesses, there would be improvement in the standard of living of people and
even higher progress is expected in terms of innovation and Technology.
As per the SBA fact sheet of 2018, there was increase in the SME employment from 2013 to
2017 by 12.1 percent. The SME employment has been increasing in past few years with an
enhancement by 1.7% in 2016-2017 there was also enhancing made of SME value added in this
period. These have been shown in the image below:
Source: SBA fact sheet of 2018

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Source: SBA fact sheet of 2018
The above figure shows estimations for the upcoming year on the basis of the previous data from
structural business statistics database (euro stat).
Apart from the national impact there are social, regional impacts too.
 Local impact. There is huge evidence in UK to demonstrate that there are special differences
in capacity of the small organisations to generate jobs, once they are set up.
 Regional impact. The regional impact of small and medium enterprises symptoms of
bringing more policies created for encouragement and support of network development.
Section 3
As given in an article of Forbes (Rampton, 2014) there are certain personality traits of an
entrepreneur. These include passion, resilience, and strong sense of self, flexibility and vision.
Considering an example of Steve Jobs former who was a genius who made Apple as the highly
valuable organisation of the world the key attribute of an entrepreneur would be to stay focused.
This organisation came from a small garage and only the determination of Steve Jobs let it to be
such a big venture. The other quality would be not to stop learning. The personality of Steve Jobs
proved that there is no requirement of College degree for making any venture successful. He
learnt from every source he came across and focus on particular venture to become an expert in
that area. It is important to look for expert advice also because even the visionary such as Steve
Jobs look for or experts advice for improvement. You also give importance to quality over
quantity. Most of the start-ups and small and medium organisations list less on the sales numbers
however Steve Jobs has different perspective. He urged the young entrepreneurs to focus on
quality rather than the quantity. Give attention to details and aim for perfection for delivering
quality goods to the customers. The best attribute would be considering failure as a learning

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opportunity. By doing so Steve Jobs had set an example for the new entrepreneurs to follow.
Identify the cause of his failure and tried to fix the issues. Utilise the failure as a way of
motivating himself and to improve upon his weaknesses. Entrepreneur has to be a risk taker.
However that is has to be a calculated one, like in case of Steve Jobs, Apple has been an
innovative product in the market. There is one more formula given by Steve Jobs for the
Aspiring entrepreneur which is dealing with real embarrassment of failure.
The Other example would be off Mark Zuckerberg who also processes the skills of an
entrepreneur. The first attribute would be confidence. Confidence is an attribute which is gained
with time and Mark Zuckerberg was a captain of the sensing team in college where he learnt
through trial and error method. He created his experience at a very young age to be one of the
highly influential entrepreneurs of the world. One more attribute would be passion. At the age of
12 years, superb created a messaging program by use of Atari basic and give it a name as to
connect. In the school time he created synapse media player which was music software and he
was getting job offers from AOL and Microsoft even before graduating. He had a passion to
create games and therefore he created the largest social networking website in the world which is
Facebook. Below given is the image which shows how the number of monthly users for
Facebook increased on yearly basis. This was all because of devotion and passion showed by
Zukerberg.
Source: Sullivan 2018

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One more trade would be of critical thinking as Zukerberg has interest in going into deep with
problems and ideas to build innovative products. He has been a visionary because he brought up
the social networking website when there was just infancy of such platforms. He handled the
United Nations on the requirement of expanding internet access to the developing countries. He
has a belief in future and has a vision for developing future generations. There was lot of
Criticism also and the acceptance of Criticism is an attribute which an entrepreneur must
possess. It is important to believe in one's own idea. It is not necessary that all ideas would be
appreciated and other people would also have the same vision. Therefore the performance has to
be there for dealing with such criticism. The entrepreneur has to be a problem solver and a great
thinker with the attitude to strive to different things. It is important to understand that future
consumer needs will change and there would be different products needed to fulfil these
demands. The entrepreneur has to have the attribute of calculating this so that opportunities are
not missed.
Section 4
OCEAN Model
As per the five factor model and the ocean model, there are big five personality traits which are
on the basis of the common language descriptors. There are various aspects of personality which
can be used for the entrepreneur. There are different approaches of describing personality. As
stated above, there are two entrepreneurs who are entirely different. The personality of the
entrepreneur can be thought in terms of five common traits which are:
 Openness to experience: the research shows that in around 23 studies, the entrepreneurs had
highest scores than other managers in terms of openness to experience. This shows that the
entrepreneurs are intellectually creative, imaginative, curious, innovative, and traditional and
reflective (O'Driscoll and Kamenkovich, 2012).
 Conscientiousness: as per the same research, the conscientiousness of the entrepreneurs is
again higher than the other managers. It shows that the entrepreneur level of arrangement,
organising, persistence former inspiration and hard work for accomplishing goals is much
more than the other managers. These entrepreneurs are usually dependable and focused on

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achievements. This personality is the highly consistent predictor of job performance in
various works and occupational roles.
 Extraversion: the studies show that entrepreneurs are same as other managers in terms of
extraversion.
 Agreeableness: the entrepreneurs are lower in terms of agreeableness with respect to the
other managers. The people who are high on agreeableness are forgiving, Cooperative, caring
and trusting whereas people having lo attributes are self-centred, ruthless, and suspicious and
manipulate. The entrepreneur awards are on the lower side because they have to be tough for
surviving in competitive world.
 Neuroticism: the entrepreneurs are on the lower score for neuroticism then the other
managers. Since the people with high score in this attribute experience negative emotions
such as vulnerability, hostility, stress, depression and impulse awareness therefore the
entrepreneurs are seen as the people who are emotionally stable and relaxed (Byrom and
Murphy, 2013). The entrepreneurs are calm and confident with balanced temperament. They
have to be highly self confident and resilient in the time of stress.
When one aspires to be an entrepreneur then this personality profile has to be there with a little
more confidence in the long run capacity of surviving and thriving. Personality can be useful in
understanding the reason behind actions of people and with proper knowledge, training, coaching
for my entrepreneurs can understand the behaviours linked with the personality types.
Recommendation and Conclusion
Perhaps the highly critical aspect of enterprise building is narrowing in on the best opportunity.
A lot of people observed lots of opportunities however find it tough to understand the right time
to choose a particular one and act upon it. A useful approach of making choice is to find the
sweet spot which matches opportunity with capacities and interests. This is given in the image
below.