BTEC Level 4 - Entrepreneurship & Small Business Management

This report provides a comprehensive overview of entrepreneurship and small business management, covering various aspects such as different entrepreneurial ventures and their typologies, the similarities and differences between them, and the importance of small businesses and start-ups for economic development. It also delves into the characteristics, traits, and skills of entrepreneurs, exploring their personality and motivation using the OCEAN model. Furthermore, the report examines the impact of micro and small businesses on the UK economy, supported by statistical data, and discusses how entrepreneurs' backgrounds and experiences foster entrepreneurship. The document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Entrepreneurship And
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of entrepreneurial ventures and typology of entrepreneurship................3
P2.Mention the variation and similarities in various entrepreneur businesses.......................5
TASK 2...........................................................................................................................................7
P3 Interpretation of statistics for showing impact of micro and small business on the
economy.................................................................................................................................7
P4 . Explaining the importance of small-business and Start-up's in relation with the growth
rate of the economy..............................................................................................................10
TASK 3..........................................................................................................................................11
P5 Characteristic, traits and skills of entrepreneurs.............................................................11
P6 Aspect of entrepreneurs personality that reflects their motivation and mindset.............12
TASK 4..........................................................................................................................................13
P7 Background and experience of entrepreneurs for fostering entrepreneurship................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurs are the individual who works for implementing innovative ideas for
satisfying the need of customers. Entrepreneurship is the continuous process in which new
designs are implemented for running the business in the effective manner. Entrepreneur are also
known as innovator because they work for implementing new ideas and techniques. These
individuals generally play a major role in overall development of the economy. As with the help
of these needs and demands of the customers are fulfilled in the best possible manner. Business
introduced by entrepreneurs can be small or medium size. This report will majorly cover
different entrepreneurial types and its typology, similarities and differences between these
ventures, importance of small business and starts-ups for the development of economy. Some of
the effective characteristics and traits of entrepreneurs will also be covered in this report.
OCEAN model will be used for reflecting personality and motivation level of entrepreneurs will
be discussed at the end of this report.
TASK 1
P1 Different types of entrepreneurial ventures and typology of entrepreneurship.
Entrepreneurs are known as the individuals who works for starting any new business. In
this plans are made for offering better products to customers for satisfying their unlimited needs.

Major motive behind introducing any new business idea is to earn more and more profit. The
size and scope of entrepreneurial venture depend upon the set objectives.
Entrepreneurial activity
It is concerned with implementing ideas for generating value in the market and business. In this
new ideas are used for achievement of goals in the best possible manner. Major focus in this is
emphasised on transforming ideas into reality so that goals of economy can be achieved (Acs,
Szerb and Autio, 2015).
Type of entrepreneurship ventures :
Large scale business : These forms of entrepreneurship venture is the one in which the
large number of employees are engaged to carry their operation on the regular basis. Large scale
business is the only which mainly concentrate on producing the good which are of daily
necessity and capital goods so that the customers get satisfied. These business operates to earn
high amount of profit beyond their local areas. For example : Mark and Spenser.
Small scale business : These business are the one which operate their business operation
on a small scale by the activities of manufacturing, producing and distributing. The business
operates either at the own level or in the form of the partnership with the few number of the
employees (Akehurst, Simarro and Mas‐Tur, 2012). These undertaking are operated and
managed in such a manner so that the need of the customers can be full fill by charging low for
the products and services as the generation of revenues in this business is also less than other
form of the entrepreneur. For example: Rowlinson Knitwear.
Social entrepreneurship : these business are the one which have been formed in regards
to render the social services to the society . This form of the business seeks to supply much
benefits to the society rather than concerning about the margin of the profit to be earned. These
business execute mostly for the welfare of the public due to which they have a broader scope to
grow in the UK market. For example : Roma boots.
Scalable entrepreneurship : These types of the entrepreneurship business is the one that
searches for the creative ideas which will help the business to achieve high growth and profits .
These business operates in hope to carry their current business to a next level over a period of
time (Audretsch, Belitski and Desai, 2015). The main intent of this enterprise is to brainwave the
scalable business model which will assist the worker to handle the pressure of the work. The
example of this scalable start-up are Facebook.

Different type of entrepreneurial typologies: There are various forms of
entrepreneurial typologies which inter-relate to each other in different manner. Forms of
typologies are mentioned below :
Way of life undertaking :These are the sort of business which enables people to
improve their expectation for everyday comforts and are relied upon the originators abilities,
character and contacts. It gives openings for work to the neighbourhood individuals with the goal
that they can improve their lives and can endure easily. These are the piece of social endeavour.
For Example – Oxfam.
Development firm : These are the business which has the power to scale up their
business quickly to the process and expanded profitability. These business basically centres
around fulfilling the clients needs in the ideal way. Development firms can either be huge,
medium or little in size (Bennett, 2014).
P2.Mention the variation and similarities in various entrepreneur businesses.
Every ventures of the entrepreneurship consists of different standards which exists with
some of the similar qualities in them which has establishes a linkage between all the different
entrepreneurial ventures. The different form of the entrepreneurial ventures have been discussed
below :
Difference between large scale and small scale entrepreneurship :
Basis Large scale
entrepreneurship
Small scale entrepreneurship
Objectives The business of the large scale
operates with the aim to attract
large number of customer by
rendering them the product
with unique features without
focusing on the making of
money.
Small entrepreneurs are the
one that operate the business
for earning money and large
market share so that the
business can be sustained for
the longer duration of the time.
Mindset The business of Large scale
execute their business task
with the mentality to run new
These business runs with the
mental attitude to uphold the
existing market position and

business association
(Blackburn, 2016).
organisational structures.
Traits Here the more focus is on the
background and experiences
which one has about the
working of the organisation.
This involves staying calm
and relaxed so that the
achievement of the targeted
objective is done.
Market share Works with the phenomenon
of the low cost at the prime
level so that the market share
can be attained by covering
large mass.
Small scale business operates
with the aim to cover the
smaller market segment with
the efficiency and effective
way.
Similarities between both large and small market segments :
Along with the differences both the types of entrepreneurship ventures also have some
similarities which are mentioned beneath :
 Both the ventures had to undergo a problem of insufficient availability of the finance to
execute their business operation with the increased amount of the creativity and
uniqueness.
 These firms operates in regard to compete with the rivals by holding the pricing strategy
of the cost leadership at the first level in the target market segments (Bridge and O'Neill,
2012).
 Both the form of business operates to satisfy their potential customers.
Difference between scalable entrepreneurship and social entrepreneurship :
Basis Scalable entrepreneurship Social entrepreneurship
Objectives Scalable entrepreneurship is
the one which seeks to carry
out the long term objectives of
the association.
The objective of the social
entrepreneurship is to work for
the welfare of the society. So
that the needs of the customers
can be understood within a

specific time period.
Mindset These business work with the
mentality to attain the growth
level in a frequent manner by
forming a new venture.
The mental attitude is to
provide the benefits to the
society with the better quality
of items (Cooper and Folta,
2017).
Market share As they seeks to start a new
ventures they focuses more on
covering the large market
share.
These business are the one
which seeks to cover the
smaller segment by serving the
society with various items.
Creation of the value These business focuses on the
creation of the value by
rendering items to their
customers on the prices which
are reasonable to them.
These focuses on cultural
value creation with initiation
of economical value.
Advertising tools Focuses more on the use of
different advertising tools such
as websites, T.V, social media,
newspapers etc.
Focus on the use of marketing
tools that is mouth publicity
about their products and
services.
Similarities between both scalable and social entrepreneurial business :
These kind of the entrepreneurial business also fosters some of the similarities which are
as mentioned beneath :
 Both the business perform their activities in order to create value which would help them
in gaining a successful position in the marketplace.
 Both the business generally focuses on the satisfaction of the requirement which the
clients or the customers demand (Epifanova and et. al., 2015).
 Scalable and social entrepreneur operates business with the aim to attain goodwill.

TASK 2
P3 Interpretation of statistics for showing impact of micro and small business on the economy.
SMEs are the one which is defined as the firms consisting of the employees lesser than
250. Small and medium enterprise are the one responsible for the growth and development of the
UK economy. They function as the keystone to the UK economy for enhancing their
performance , bringing new commodity in the market , providing better employment
opportunities etc. SMEs have their significant role in the development and maintaining the
stability in the economy due to which these business association get finances from the
authorities. The prime objective behind the execution of these business association is to boost the
sales and profit margins.
Diverse form of the association are mentioned below :
Small business : This form of the business is known for their smaller business operation.
These business are the one having 60 employees or less than that performing the business
operation so that the living standard can be attained via increasing the profitability. These
business functions with the less amount of capital and the ratio of their effort towards the
economy growth is also degraded (Hall and Wagner, 2012).
Micro business : Micro business are the one greater than small business but operates
their business function on the small scale. The number of the employees present in the business
is up to the 12 workers including their owner too. The amount of profits and sales is earned by
rendering the products and services in the market of the proper standard and quality.
Large business : This form of the business perform their tasks on a large scale so that
the higher amount of the profit can be earned with the help of the employees recruited. The
business have 260 workers who are working towards the achievement of the goals and higher
sales volume so that they can build the brand image and strong recognition. Small and micro
business contribution in the growth of the UK economy :
Types of the
business
Number of
employee
Total
assets
Annual sales
Small business Fewer than 60 ≤ £ 3.0 m ≤ £ 3.5 m
Micro business Fewer than 12 ≤ £ 14m ≤ £ 9m

Large business Fewer than 400 ≤ £ 50 m ≤ £ 50m
Statistical data denoting the impact of SME on UK:
 5.5 million private sectors were under the hold of the UK economy during the year, 2017.
 There was a significant increment in the percentage rate of the private business that 3 %.
 SMEs joint turnover rate represent about half ( 49%) private sector employee turnover in
the UK.
 Close to 17.4 million individuals are engaged under these SMEs which is 60% of total
people employed in the private body .
Illustration 1: SMEs in the UK
Impact of SMEs on UK economy -
Local impact : SMEs is the key point for the UK economy as they serves the economy
with the higher employment opportunity. The composed percentage of the employment is 65%

because of which the cost and the revenue margins are undertaken by the local people only
without any interference.
Regional impact : SMEs also fosters a great amount of impact on these regional sectors
by rendering a right to the individual regarding their earnings so that their requirements and
expectation gets full filled and the standard of the lifestyle can also be enhanced . This allow
support them by providing increased job opportunity (Kelley, Singer and Herrington, 2012).
National impact : SMEs complete the needs and demands of population in UK due to
which people occupy their choose to use their services or products. This circulate them and
expand their business transaction in outside UK also due to which development at national level
is earned.
P4 . Explaining the importance of small-business and Start-up's in relation with the growth rate
of the economy.
Every economy must consider on the opening of the new ventures and small businesses
as their have their own importance in developing the economy. These business are being funded
by the government at the initial level so that they can easily stablish the business can can give
their large contribution towards the development of the economy. Small and start-up business
also supports the economy to cope up with all those frequent changes and challenges which
affects the development of the economy. Small business is the one which is mainly concerned
with the earning of the profitability and stability but Start-up are those which gives their more
emphasis on the end revenue and the development of the business. These undertaking provides
following benefit to the economy which made its important are as follows-
 Providing employment opportunities- These both the new ventures come up with the
employment opportunity for the people as these are the newly establish business which
requires a workforce to perform their business activities. These provides leading chance
to the people who are not able to showcase their talents and knowledge by offering
them the employment opportunity. New talent will also support the business in
enhancing their productivity through the increased performance (SMEs in the UK.
2019).
 Increasing awareness- these business mainly focuses on the process of sustaining their
enterprise in the market with the help of increasing awareness about the new products and

services in the marketplace. Increasing awareness would also help the business to
maintain the stability of the economy by lowering the prices of their products and
services at the time of instability.
 Creation of Innovative product- The Small business and start ups also helps in
generating the higher amount of profit and revenues at this start their business by
providing the products which are of high quality and innovative features. This also helps
the economy to attain a position of growth by providing their clients with the most
suitable products of their expectation.
 Enhancement of domestic culture- The economy of the UK has to undergo various
difficulties which has lead to reduced amount of revenues and profit and at this point of
time the Small business and Start-up plays vital role by manufacturing the goods which is
of customers demands so that the growth stage can be achieved with the fulfilment of
these social responsibilities.
Hence, these are the benefits which are derived from the small and Start-up's enterprise which
has proven their significance in the growth of the UK economy.
TASK 3
P5 Characteristic, traits and skills of entrepreneurs
An entrepreneur is a person who perform different task from managers and employee's as
they are responsible to manage overall business's. Therefore some characteristic, traits and skills
of manager are as follow:
Characteristic Self-motivation- This works as a most important characteristic in an entrepreneur that
helps them to gain high success in organisation. Self motivation helps entrepreneur to
dedicate them towards their work through formulating effective plans and policies in
order to complete their work. While manager are not or less self motivated to develop
plans for organisation (Morris, Neumeyer and Kuratko, 2015).
 Flexibility- To gain competitive advantage in market an entrepreneur adopt essentials
changes for completing their work or task with more efficiency and effectiveness. This
determines entrepreneur are flexible in nature but manager will not prepare to adopt
changes quickly as they follow traditional method to complete their work.

Skills Time management- In this it is essential for an entrepreneur to complete their work
within minimum time period. So entrepreneur generates plans that includes several
milestones and execute them due to which they are able to complete several task. While
manager allocates and implement methodology but not able to manage them in
minimum time period.
 Communication- This is most important skill for an entrepreneur as they need to
complete different task for attaining their goals. So communication skill helps them to
communicate effectively with other employee's of organisation. On other hand
communication skill helps entrepreneur to influence other persons to engage in their
work. On other side it is difficult for managers to convenience employee's because of
their low communication skills.
Traits Strong work ethics- Entrepreneurs are those person who start their own venture for
earning high profits. So they follow strong work ethics such as hard and smart work for
performing their operations either professionally or personally. While manager follow
only ethics for their professionally work. So it is easy for entrepreneur to complete their
work effectively.
 Creativity- One of the major function of creativity is ability to predict out relationship
between two different situations in a unique way. Moreover it work as a combination
several activities that is used by an entrepreneur to complete their work through a new
approach. While manager perform their work through traditional approaches as they are
habitual to them.
P6 Aspect of entrepreneurs personality that reflects their motivation and mindset
Entrepreneur are those person who respond differently on same situations that take place
in an organisation. Therefore big five trait personality model is implemented for understanding
human personality which is accountable for predicting out differences between different
individuals. Openness- An entrepreneur is open to learn new task in order to increase their market
operations. This refers to those people who are ready to learn new things and enjoy them
to perform them after learning it successfully. Moreover the trait of openness includes