Entrepreneurship and Small Business: Types, Impact, and Skills Report

This report explores the multifaceted world of entrepreneurship and small business management. It begins by defining different types of entrepreneurial ventures, including small businesses, large companies, and social enterprises, and discusses their similarities and differences. The report then delves into the impact of micro and small businesses on the economy, interpreting relevant statistics to illustrate their importance at local, regional, and national levels. Furthermore, it highlights the significance of small businesses and startups in fostering social and economic growth, emphasizing job creation and economic contributions. The report also examines the characteristics, traits, and skills of successful entrepreneurs, analyzing how personality aspects and background experiences influence entrepreneurial motivation and outcomes. The content is presented as a student assignment and is available on Desklib, providing valuable insights into the world of entrepreneurship.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Different types of entrepreneurial ventures and typology of entrepreneurship.....................1
P2 Similarities and differences between entrepreneurial ventures.............................................3
Task 2...............................................................................................................................................4
P3 Interpretation of statistics for showing impact of micro and small business on the economy
.....................................................................................................................................................4
P4 Importance of small businesses and business starts-ups in growth of social economy.........6
Task 3 ..............................................................................................................................................7
P5 Characteristic, traits and skills of successful entrepreneurs...................................................7
P6 Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation.........8
Task 4...............................................................................................................................................9
P7 Background and experience can hinder or foster entrepreneurship.......................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The entrepreneurs are those individuals who seeks to do more with the existing trend of
market. An entrepreneur puts all their efforts and hard work on to brining the revolution within
their respective share by imposing the effective ideas and practising unique as well as innovative
process of work, to create a distinct8ive image of themselves in the market. As these all the
qualities differentiates an entrepreneur from a traditional business tycoon (Akehurst, Simarro,
and Mas‐Tur, 2012). The entrepreneurs within the nation enforces a country to boost its economy
by generating optimum vale of revenue from their respective work fields.
To support this fact entrepreneurs establish the business ventures in the market. These
ventures are different from each others in various measures, such as according to their nature,
that could be public, private etc. or according to the size whether it can be small, medium or
large industry. This report paper here will determine all such factors such as differences and
similarities among various types of ventures and interpreting the statistical data to observe the
influence of small and micro enterprises on the economy. Along with that, the certain types of
typologies of ventures will also be discussed, the importances and explanation of the
characteristics of small / micro business and start ups is also mentioned in this project. Thus all
the aspects of entrepreneurial motivation and mindset impacts on the overall business
background and certainly on the personality of entrepreneur as well as of entrepreneurship.
Task 1
P1 Different types of entrepreneurial ventures and typology of entrepreneurship
The entrepreneurs are wholly accountable to establish new business ventures to perform
the trading of their goods and service to earn a standard amount of profit. Each of these said
enterprises have their own purpose of existence and have distinctive approach in the market
place which enables their respective stake holders to gain their shares of profitability. The
effective returns from these ventures in the form of profit and dividends are the standards to
determine the success and work flow of the respective venture. These business centres are
classified on the basis of their size, nature, purpose, scope, capital invested etc.
Entrepreneurial activity
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All those certain tasks and actions that helps a business to complete its operations for the
achievement of its determined goals and objectives are termed as the entrepreneurial activities
(Bakeman and Hanson 2012). These activities are an important part for the business growth and
development as all these activities are combined with the identification of innovative and unique
ideas which can significantly enhance the business process and can give the suitable alternatives
to improve the work operations and increment of effectiveness and efficiency in the respective
work flow.
Different type of ventures
Small business: The small business are considered as the post initial stage of
entrepreneurial section, as these types of business units have a determined number of employees
that can be approx 50, where each and every one is assigned with respective duties and
departments. The nature and working process of these business are not so developed according to
the market as these types of industries runs on a very specific budget and that is generally
formulated from the revenue and profits which are gained with the previous sales of products and
services. The small firms can also be formed out of partnerships, uni cell expansion or sole
proprietorship. The standard net worth of a small business is considered to be below €2 million.
The effective private small business units in United Kingdom are Clarasys, Orion electro tech
limited etc.These organisation have a very limited amount of capital that is invested in the
overall operations and the working f these company does not involve more than 250 personnel at
work.
Large company: The large companies are associated with the huge level of operations
and limit less trading and profit earnings. The distribution of products and service of a
respective large company is performed at a very large scale and in a very systematic manner.
Most of the large scale companies expand their business operation a global level. A huge amount
of capital is also invested at the beginning of these organisations. Big firms of United Kingdom
such as Marks and Spencer, in the private sector whereas NHS is also a renowned company
among the public sector of United Kingdom . These companies work at a extensive level
equipped with more than 250 workers. While the Marks and Spencer operates its business at a
global level. The company deals in clothing and other essentials in the global market.
Social enterprises: These organisation aims at resolving the social issues and works for
the betterment of society and region. These firms are developed with a view to understand the
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social conditions and provide tools and solutions for the growth of society and welfare of the
communities. These organisations provides opportunities to the deserving and underprivileged
people to nurture their living standards in a better way. Earning profits and generating more
revenue is not even considered as a priority in such organisations as boosting the economy and
social standards are both the integral goal of these companies. The major name in social
enterprises is save the children organisation, which works more like a NGO and NPO. Save the
children is a non-governmental and non-profit organisation that fosters young aged children and
provide the essential caring to the underprivileged young generation. With this cause the
company
Typologies of entrepreneurship
The entrepreneurship ventures within various fields of business uses certain typologies to
run their business and achieve the determined goals and profits. These typologies are analysed
here in brief :-
Lifestyle Enterprise: The lifestyle enterprise emphasises on the betterment of living
standards and class of the consumers these enterprises are categorised under the social class
firms.
Growth firms: The growth firms are considered as the maximum revenue generating
companies. Earning and enhancing the profitability of the firm is the priority in such kind of
organisations (Bennett, 2014). The idea to promote the business is the basic component on which
the whole organisation implement its working process. These business are the part of small and
large industry type.
With the briefings that are given above the basic interconnection between entrepreneurial
ventures and typologies can be simply justified. As both the typologies works toward in a
direction to increase the higher standards of society by providing specific goods and types of
services in the market.
P2 Similarities and differences between entrepreneurial ventures
The difference and similarities between entrepreneurial ventures are described here as
follows:
Differences
Basis Small business Large company Social
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entrepreneurship
Scale The scale of the business
is low and can be called
as small as the nature and
capital invested in the
operations are quite low
for example Softwire
The business demands a
big amount of funds to be
invested in the
establishment and in
practising the operations
These
organsioations work
on the local level to
promote them so
there is no such
criteria to determine
the scale as it could
a large or small both
can be social .
Purpose The purpose here is quite
general and that is for
employing oneself and
earn the money for better
life cycle.
The aim is to earn fat
amount of profits by
practising businesses on
an extensive level.
The firm here has
the main goal of
welfare of the
society.
Ownership In the small business the
top management holds
the position of ownership.
As most of the small
companies have sole
proprietorship
These organisation have
their ownership distributed
in the group of one.
Along with that in most of
the large companies the
owners are the direct
investors
There is no such
ownership that is
possessed by
individual. The
ownership rather
considered as
management or care
take and that is done
by the founder or
the team associated
with the company.
Similarities
Basis Small business Large business Social enterprise
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Need Small firms works to
satisfy the local
consumer needs.
Large companies
fulfils the demand and
needs of the respective
consumers but an a
vast level.
These are established
to provide the best
services to the society
without concerning
much about capital
wasted.
Society upliftment These organisation
offers a back support
to the unemployed by
giving them jobs what
they want on the local
level.
The society gets and
upliftment by taking
employment
opportunities in the
organisation and by
purchasing the high
standard quality
products in near buy
stores.
These organisations
offers all types of
social services which
are helpful for the
growth of the society.
Task 2
P3 Interpretation of statistics for showing impact of micro and small business on the economy
The business is significantly classified in three types of ventures on the basis of size. That
includes all the factors such as nature and structure of the business (Barringer, 2015). Thus the
segmentation of business is describes here as follows :-
Small: the small business firms have a criteria of recognising its nature as the employees
should be 50 or below 50 . these types of firms believes in the hard work and less management.
Such organisations impacts on the economical and social factors of the country as it provides
employment to local and generate revenue for the growth.
Medium: The medium scale ventures have a number of more than 50 and less then 250
employees to perform the work and operations in the company. These type of companies help
the society by providing the means of commodity at a regional and national level.
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Large: these kind of organisations works with more than 250 individuals and generate the
revenue more than £ 22 million. The large companies are not limited by the political boundaries
of a nation, they operate on a global level with a enhanced level of growth and profitability.
Impact of SME on economy
Local impact: the SMEs influences the local people to get engaged in the organisational
process. This enhances the level of public engagement on company and increases a potential to
grow from local level by providing the essential facilities to the local people.
Regional impact: The issues of unemployment are being solved by the SMEs as the
companies like such offers wide area of opportunities to to the potential and deserving candidates
of a region. Along with that these companies also promotes the development and growth of the
lifestyles of the regional people by providing excellent and essential offerings. That helps in the
development of the economical factor within the particular region.
Illustration 1: Role of SMEs
(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)
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National impact: SMEs impacts on the national level by operating new and innovative
measures in the business, that helps in their growth and enhanced profitability. The more
financially sound companies are enabled to contribute in the national economy of UK.
P4 Importance of small businesses and business starts-ups in growth of social economy
The small and medium business and the emerging start up in the country are acting as the
backbone and crucial support to the financial infrastructure of the respective nation. The
significance of these ventures on the economy of UK are as follows :
Job creation: the both sectors of business sector plays a crucial role in eliminating the
unemployment crises in the nation as the new and developing ventures faces the need of skilled
labor and work force to carry out their operations (Goffee and Scase, ,2015).
Improve living standard: the start ups and small business are in a way for the betterment
of life style of society by providing the distinctive services and products to the consumers as well
as by defining new terms and channels of opportunities in the area of business and
industrialization.
Economic growth: these both type of organizations covers a wide area of their respective
market share that helps in to determining the earnings of company in a desired level. The growth
of the economy of a nation is associated with the development of economic standards of its
business and trading ventures so with the constant growth of startup and small companies the
positive impact on nations GDP is quite ensured. .
The SMEs are playing a crucial role in supporting the cause of social and individual
welfare. The charities are performed by these small industries, which provides necessary aids to
the under privileged zone of society. They are also concerned with the environmental conditions
and top support this statement there are numbers of evidences which are present in the culture of
these small and medium enterprises. Events like tree Plantation, and spreading the awarenesses
regarding the water scarcity is one of the major characteristics of SMSs other than their usual
business activities. These characteristics are termed as the general operations that the SME plays
in order to achieve the high level at supporting the environment as well as for the effective
participation in charity.
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Task 3
P5 Characteristic, traits and skills of successful entrepreneurs
Successful entrepreneurs has different skills, traits and characteristic that provides extent
level of contribution in their success story and differentiate themselves from business mangers.
Inherent of appropriate skills, traits and characteristic helps entrepreneurs in improving their
productivity and profitability in their respective company. Here, Simon Arora and Bobby Arora
has been taken as main entrepreneurs whose characteristics, skills and traits are specified below:
Characteristic
 Passion: Passion is determined as the essential characteristic that must be owned by every
entrepreneur as its encourage them to perform the same with maximum efforts and
contributes in accomplishing their goals in quicker manner which out issue. By having
this characteristics both the specified entrepreneurs could attain their goals in rapid
manner. This simply differentiate them from business managers who often loose control
over their patience level and does not able to take right decision. Self belief and hard work: By having strong self belief and hard work Simon and Bobby
Arora can easily perform their work and attain success as are having strong confidence on
them self which helps them out in performing each task with hard work. This
characteristic of entrepreneurs keep themselves different from business managers as they
are less hard working in comparison of entrepreneurs.
Skills
 Innovative thinking: Inherent of this skill provides contribution in bringing innovation at
workplace. This skill directly supports Simon and Bobby Arora in resolving their
workplace issues by bring innovation and attaining success effectively in rapid manner. Leadership: Both the entrepreneurs Simon and Bobby Arora are having extent level of
leadership skill which helps them in guiding each and every employee in competing their
work in timely manner. Here, it can be said that every leader does not have leadership
skill which reduces their own as well as team members performance at workplace.
Traits
 Confident: As being a successful leaders both the Simon and Bobby Arora are highly
confident which have supported them in developing their strong image at marketplace.
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This confidence directly differentiate themselves from managers and also contributes in
taking rightful decision. Disciplined: It is highly important for every entrepreneur to perform each and every work
in disciplined manner which contributes in balancing their personal as well as
professional life in appropriate manner. Simon and Bobby Arora are highly disciplined
which maintains their confidence level in the work and contributes in achieving their
organisational goals in quicker manner.
Difference between manager and entrepreneurs.
Basis Manager Entrepreneur
Nature The managers within an
organisation has a nature to
solve the problems under
respective management
guidelines.
They does have a significant
nature to take risk and identify
the problems even before they
arises.
Responsibility They are responsible to only
those activities in which they
are assigned to
Entrepreneurs are wholly
responsible for all kind of
activities and tasks that took
place in their venture
Role The manager has a role to
manage the respective part of
their work
While they have distinctive
role to monitor, analyse and
perform all the operation in
the business.
P6 Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation
OCEAN model is an effective framework that is supportive in explaining entrepreneurial
motivation as well as mindset (Bhachu,2017). This basically includes 5 aspects which is
specified as below in detailed manner:
Openness: It is mainly related with adventure, emotions and ideas which simply reflects
that curiosity of entrepreneur towards the work that contributes in taking effective decisions
towards organizational work.
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Conscientiousness: This aspect is mainly related with reliability and flexibility. This
simply specifies that every entrepreneur must focus on their core goals and objective instead of
focusing on other non required work which might delay in the attainment of organizational goal.
Extroversion: This aspect is mainly related with behavior of entrepreneur who must
remain energetic, talkative and familiar with the employees so that they can perform their work
at workplace in comfortable manner (Epifanova and et. al., 2015). Every entrepreneur is required
to have this as it supports them in accomplishing their organizational goals in quicker manner . It
can be determined as the extroversion is the key characteristic of an entrepreneur as the more
they interact with other people the more they will be able to build their brand image and business
expansion.
Agreeableness: According to this entrepreneurs must have to trustworthy and cooperative
behavior so that they can easily coordinate with others and perform their work effectively with
one another support. In relation to the new venture sand entrepreneurial firms the quality of
agreeableness in the decision making makes the entrepreneur more positive and responsible.
Neuroticism: This aspect is highly related with various feelings like frustration, anxiety,
jealousy etc, all in one it can be said that negative response towards the situation which makes it
difficult for them to handle organizational situation. Entrepreneurs must avoid these kind of
feelings as with their inheritance it would be difficult for them to develop healthy working
environment at workplace. The problem of mental instability can be way too much dangerous
for the organization as well as for the entrepreneurs themselves as it should be get on over the
business .
Task 4
P7 Background and experience can hinder or foster entrepreneurship
Entrepreneurs are those individuals who seeks toward success from every task and
business activity that they perform. The success and failure of the entrepreneurship is highly
determined by the personal experiences , educational and family backgrounds. Thus to support
this fact here the brief case information of Simon and Bobby Arora is given hereby .
Simon Arora
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Personal Background: who was born in the year 1969. married to Shalni Arora, a natural
science graduate from Cambridge University . Simon Arora also completed his law from
Cambridge University. Now he has two daughters.
Experience: Simon Arora worked in McKinsey, Barclays and 3i on the designation of
analyst. Later on he moved towards the business sector with his brother Bobby Arora. Their
business was mainly based on importing and exporting. They both imported home ware
appliances from Asia and supplied it to the multiple supermarket and retail chains of United
Kingdom. Then they acquired B&M which didn't turned out well in the beginning, but with the
course of time the company started to evolve and grow and recently in 2017 both the
entrepreneurs Bobby and Simon encashed their one fourth shares at 215 million for the public
recognisance of the company.
Bobby Arora
Background: Bobby Arora was born in January 1972 he is certainly having a title of
born trader by his brother Simon Arora. He has two siblings Simon and Robin Arora
Experience: Bobby Arora founded Orient Sourcing Services in 1995 along with his
brother Simon Arora, in which he does the work of import and exports. Then they both jointly
brought a below average retail chain named B&M in UK. It become a huge successful business
venture that deals in home ware and Bobby here has secured the position of director in the
company since 2005. currently he holds the same director designation in Heron Food Group Ltd.,
EV Retail Ltd. And Heron Foods Ltd.
As here with the reference of personal and professional details of both the entrepreneurs
it is ascertained that the successes of any kind of entrepreneurship is totally based on the certain
background and personal characteristics. As it is not that simple to sustain and create the growth
path ways for the business in such a high competitive era within the markets.
In the case of Bobby Arora it can be ascertained that in achieving the success in business
Mr. Bobby has faced a lot of problems and issues that was difficult to deal with but as he had the
effect support of his brother Simon Aurora it can be considered as the personal experience and
family support that played an important role in determining the success.
Along with that in case of Simon Arora the effective part of his success is belong to only
him and on his personal experience. He started his first business with his brother. Who played an
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important role in the carrier of the business. With this fact it can be ascertained somehow the
carrier growth and success of entrepreneur is determined with the support of family.
CONCLUSION
From the above findings in this project it can be ascertained that the values and ideas of
entrepreneurs are wholly accountable for the success and growth of their ventures (Bridge and
O'Neill 2018). The different types of venture inclusive of small, large and social firms that are
interlinked with each other through different typologies. The differences and similarities among
these type of organisation can be observed through their characteristics. Further, the skills and
tactics that are essential to be presented in an individual to be a great and successful
entrepreneurs are discussed here.
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REFERENCES
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revolution. Routledge.
Berglund, K., Johannisson, B. and Schwartz, B. eds., 2012. Societal entrepreneurship:
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Bhachu, P. ed., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks.
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and O'Neill, 2012) (Carsrud and Brännback, 2011) (Dees, 2017) (Epifanova and et. al.,
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Online
The Role of Start-ups and Small Businesses in Today’s Economy. 2018. [Online]. Available
through:<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>.
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