Report: Entrepreneurship and Small Business Management - Semester 1

This report delves into the multifaceted world of entrepreneurship and small business management. It begins by examining different types of entrepreneurial ventures, including private, public, and social enterprises, highlighting their key characteristics and objectives. The report then explores the similarities and differences between these enterprise types, focusing on their organizational structures, goals, and operational approaches. A significant portion of the report is dedicated to analyzing the impact of micro and small businesses on the economy, emphasizing their contributions to employment, industry output, and GDP. Furthermore, the report explains the importance of small businesses in fostering the growth of the social economy, discussing their role in innovation, niche market catering, and export activities. The analysis extends to the qualities of successful entrepreneurs, entrepreneurial motivation, and the influence of background and experience on fostering entrepreneurship. The report concludes by summarizing key findings and insights into the dynamic and crucial role of entrepreneurship in economic and social development.

Entrepreneurship
And
Small Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examining the types of Entrepreneurial ventures.............................................................1
P2 Exploring the dissimilarities and the similarities between public, private and social
enterprise................................................................................................................................2
P3 The impact of micro and small business have on the economy........................................4
P4. Explaining the importance of small businesses on the growth of social economy..........5
TASK 2............................................................................................................................................6
P5. Qualities of successful entrepreneur:...............................................................................6
P6 Entrepreneurial motivation and mindset...........................................................................7
P7 Examining the extent to which background and experience foster entrepreneurship.......9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is the exercise of starting of any new business, ability or
temperament to develop, organize and manage a business venture. That would work to take
up the risk in the process of making profits. Entrepreneurship is highly significant which in
turn helps economy to grow. The rationale behind this, entrepreneurial facilitates innovation
and thereby raises living slandered of people as well as employment opportunities. The main
aim of the report will be exploring the range of business venture available to the
entrepreneurs. Besides this, it will shed light on the extent to which micro businesses
contribute in the developmental aspect of economy. Several areas of the ventures will be
covered from the key definition of micro and macro businesses. Also, see the management
concept and the styles used to run the public, private and social ventures. The entrepreneur
are certainly not born but are made by education and experiences. The quality of a good
entrepreneur are education, management quality, innovations and past experience.
TASK 1
P1 Examining the types of Entrepreneurial ventures
Entrepreneurship is the procedure of identifying the business opportunity and work on
it to achieve these to explore all the possibilities. Without willing to take risks in the business
an entrepreneur is not establishing as risk is the main factor driving the growth.
Entrepreneurship working on the small scale with limited number of employee's in it is
referred to as small businesses enterprises. The owner is known as the sole proprietor starting,
controlling and managing the tasks all by his own (Carland and Carland, 2015). There are
mainly three types of entrepreneurship i.e. private, public and social enterprises.
a)Private enterprises- All the enterprises which are started up, managed and owned by one
single individual or an independent companies are known as the private enterprises. The
businesses activities which are not regulated by the government or the state do not interfere in
the working of the enterprises that are privately owned are the private entrepreneur. The risks
are borne by the single proprietor only and all the profits made by the enterprise are also the
share of the proprietor. If he wants he can involve any organisation or any other individual in
the profit making share but is again his call (Schaper and Gibson, 2014). Although the
government does not interfere means that it will not be part of the profits but the businesses
operating within the country must follow the laws of that country. The main motive of such
enterprises is to earn high income and diversify their businesses operations or venture. They
generally are not concern with the social motive or to grow the economy either.
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b)Public enterprise- The company whose working are all subject to that of the government
that form of organisation which are owned and regulated by the government or the state.
Whose shares are available and are traded on the stock exchange or over-the-counter market
(Mariotti and Glackin, 2014). They are to follow more regulations and laws as compared to
privately owned company and they also have the greater access to financing. Organisation
wholly or partly owned by the government and are controlled through public authorities are
the public enterprise. Their motive are growing the economy the work for society and the
betterment of people.
c)Social enterprise- The enterprise which make the strategies to maximize the improvement
in human and the environmental well being are known as social enterprise. They can also be
divide into for profit and non profit depending on the country in which the entity exists and
the legal structures of the country (Sarma and Borah, 2016). They are the enterprise who
works for some social cause such as helping the poor and weaker section of the society, for
the education of the girl child, for empowering women etc.
P2 Exploring the dissimilarities and the similarities between public, private and social
enterprise.
The difference between the three types of enterprise are given below:
Basis of difference Private Public Social
Definition They are the type of
enterprise which is
concern with the
profit making for the
enterprise. This is
generally owned by a
single owner.
The type of entity
which are regulated
by the government of
the country in which
it is operating. They
work in the
shareholding form.
The company which
work only for the
betterment of the
society help in
upliftment of the
people. They also
work for the
improvement of the
environment.
Objectives As they are set up for
only to earn profits
for the entrepreneur.
Concentrate on their
own betterment and
They look after the
economy, work for
the grow of the nation
and for generating
employment.
Their motive is to
provide the
necessities of the life
to the poor and
weaker section of
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expansion. society. Work for
environment and help
in the disaster prone
areas of the world
Roles Role is to make more
and more profits from
the given profit by
investing the income
back to the company
only. But it also has
to invest some part of
the profit in the
advance of the
community as well.
They help in
maximizing the rate
of economic growth
of nation, developing
the agriculture, it
balances the regional
development of the
country, increase the
employment
opportunity in the
country, etc
Is a revenue
generating business
whose surpluses are
reinvested for the
purpose of
community rather
than to give profit to
the shareholder or the
owner.
Characteristics It has all kinds of
freedom as the power
lies with the owner.
Has the limited
government control
can freely set the
price of the product
according to the
demand and supply. It
has the power to own
the private property.
The ownership is with
the state, all the
control reset with the
government, even the
financing is done by
the state and is
accountable to the
public.
They are basically
community driven
they have the desire
to improve the lives
of community. Are
very determinant to
work for the society b
and the country. They
are mainly mobile in
nature as they can
move anywhere in the
country or any part of
the world too.
Scope Have the limited
scope of operation as
it has its functioning
in the specified area
The scope is laid
down in the
Memorandum of the
country. The scope
Vary in size from the
new start up to multi-
national company.
The spread of
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only. But the scope
can be increased by
expansion of the
operation of work to
other areas as well.
are in wide range but
only limited to the
territories only. Does
the manufacturing of
steel, mining,
exploring crude oil,
producing consumer
goods, providing
services such as R&D
, tourism etc.
activities are very
wide as the work in
almost every part of
the country to help
and tackle problems
of exclusion.
Despite all the above mentioned dissimilarities the three sectors are having some
similarities as well such as: Customer service oriented- All the above depicted sectors are very customer centric
and lay emphasis on providing them with suitable products or services according to
their need. Private sector customer agrees to pay for their service to enterprise and
that of public sector are the citizen of the country (Gibson, 2017). And for social
sector all those who need their help are the customer.
 Open to change- By increasing and changes in the technology all the three sectors are
always ready to take up those changes and apply in their businesses. They listen to the
new ideas, explore the new possibilities and open to employ them to their work.
P3 The impact of micro and small business have on the economy.
The small business refers to that form of enterprise which employs a less number of
personal about 20 people. They can be categorised into Non employing business (sole
proprietorship and partnership without employees); micro businesses (employing between 1-
4 employee's); and other small businesses (between 5-19 employee's). All the small enterprise
are not providing employment for example sole proprietors who work independently. Small
business employ over 24.3 million people in UK which accounts for 60% of the private
employment.
They make very vital role in the development of the economy as they by providing
employment are contributing in the economic development. Contribute to the total value of
industry output but very less in the total exports. Small businesses bestow about one third
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(33%) of total industry value added. They also lend in GDP or the per capita income of the
economy and to almost all the sectors (Burton, Sørensen and Dobrev, 2016). Small sector are
now operated in all the other kinds of businesses like rental, hiring, real estate services,
construction businesses, professional, scientific and technical services. Although they give
very less to the export industry of the country but then too a little is contributed by the side.
Small businesses' exporter engaged in the wholesale trade of their product and the retail trade
as well.
Providing the employment to numerous people of the weaker and backward section of
society small sector helps to improve the living standards of them. They are the source of job
creation in every economy. In many countries they depend on SME are open to international
trade are more exposed to the shocks from the international trade. They also some way or the
other partner to the large businesses by helping them in growing the businesses (Jaén and
Liñán, 2017). They work with big organisation with the mode of tie ups helping them to
produce the goods for them. With their size they often identify and embrace new trends in the
industry and are driven by the innovation.
P4. Explaining the importance of small businesses on the growth of social economy.
Being entrepreneur means developing the right skills, attitudes and initiative to make
an innovation contribution to an organisation. Small entrepreneur developing the personal
relationship with customer, employee and suppliers this interaction is as important as
building strong relationship (Chell and Harris, 2016). SME are well positioned to introduce
and develop new ideas and innovation this will help the society. For the country it is
important to know the importance of the SME sector in the growth of social economy. They
cater the limited or the niche markets of the larger firms with high overheads must produce
high levels of output to spread costs. They are important due to their role in exporting the
products to the other nations. 91% of the identified exporter is small enterprise only and they
produce about 30% of the export value through their ships. Without this impact of small
business the exports would be much lower, which would significantly damage the economy.
TASK 2
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P5. Qualities of successful entrepreneur:
Becoming an entrepreneur is not easy just as the pronunciation of the word. Starting
any kind of business whether small, medium or large is not an easy task. Starting a business
means sacrificing comfort and security of day to day job. Not everyone possess the qualities
of becoming a successful entrepreneur. Here are some qualities discussed for successful
entrepreneur:
 Initiative: The foremost quality that should be present in the person to become a
successful entrepreneur is to take initiative. The person must be ready to initiate a
start-up with all his passion and dreams. Inattentiveness brings the self confidence to
do initiate things that are to be done. Person should be proactive, and ready to take
decisions, and not waiting for someone's permission (Read and Wiltbank, 2016).
 Persistence: The another quality a person should possess to become a successful
entrepreneur is persistence. Persistence is something that can relate to oneself believe
in himself and his ability to achieve success.
 Self-discipline: Discipline and self-discipline is the first thing any person should
possess to be successful in his personal as well as business life. You can achieve a
guaranteed success if you can discipline yourself to do what is right to do, whether
you like it or not.
 Competitive: In any business competition is there and so person need to be of
competitive nature. One must be futuristic and ready to compete with the competitors
in the market and need to win at the business that he has created (Ramadani and
Ratten, 2017.).
Traits and characteristics of two leading entrepreneurs of UK are enumerated below:
Laurence Graff
Laurence Graff is the wealthiest Diamond merchant in the UK with the Net Worth of
$4.3 Billion. He founded Graff Diamond, one of the famous Diamond jewellery Business in
1960.
Characteristics and Traits of Mr. Laurence Graff to become a successful business person:
·The great entrepreneur always strives to do best in everything he does.
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·He acts with full intention and without limitation.
·Rely on self without being afraid of anything.
Richard Branson
Sir Richard Branson is a CEO of Virgin Group including Virgin Mobile, Virgin
Airways and Virgin Megastores with a Net Worth of $4.6 Billion. His characteristics and
traits to become a successful entrepreneur are:
lHe believes combination of passion, vision, creativity and a sense of adventure is an ultimate
key to success.
lEntrepreneurs are not Born, they are Made. Often the question arises that
entrepreneurs or born or made. Entrepreneurs are never born, only entrepreneurship skills can
make a normal person a successful Entrepreneur. Entrepreneurship is certainly not the
inherent quality of any individual like the athletes have it is to be develop in the individual.
The quality of an entrepreneur is developed by the education and the experience which he/she
learnt in the institution or in life. The main quality of the entrepreneur is innovation which is
to be learnt and not obtain naturally. As the success of Steve Jobs, Bill Gates, Warren Buffet
and many such great entrepreneurs who start their own business to make profits were also not
born. Anyone can become entrepreneur by starting their own business and is working for
their own profits. There are no such boundaries but you're working position will determine
whether you are an entrepreneur or simply the worker ((Mariotti and Glackin, 2014).
Entrepreneur are not naturally born instead they are made this is not the destiny but the
qualification or the degree. From the previous experience the entrepreneur will be learning
how to tackle the situations and solving the problem.
P6 Entrepreneurial motivation and mindset
Entrepreneurial behaviour is dynamic in nature and evolves over the period.
Motivation is phenomena in our inner state of mind that attract, moves and direct our
behaviour toward our goals. It gives direction to the human behaviour to fulfil his needs.
Entrepreneurial qualities help in building entrepreneurial motivation. Successful
entrepreneurs reflect entrepreneurial motivation and mindset (Caputo, and Poggesi, 2017).
The entrepreneurial Motivation:
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It is the process that activates the mind to exert higher level of efforts for achievement
of his entrepreneurial goals. Entrepreneurial motivation drives an entrepreneur the intensity,
persistence and direction of his voluntary behaviour. A motivational entrepreneur will always
be willing to apply a particular level of effort, for a certain period, to achieve a particular
goal. Motivation can cause different behaviours. A person with the motive of profit making
will work in the direction of improving his products and services by reducing its cost, while
person with the motive of earning prestige in the society will move in the direction of politics
and similar kind of groups. Likewise, different motives may result in single behaviour. A
person may have a single behaviour to accomplish different kinds of motivations.
Factors of entrepreneurial motivation:To become independent- Every entrepreneur wants to become independent as they are the
real owner of the businesses so they need that they only should have the power to make and
change the rules (Gibson, 2017).Availability of financial support- They also want that their business should not be
financially weak and they are always available with the resources.Demand of a product- The market demand of their product should also keep increasing so
that the profits are rising.Risk taking factor- If you are the entrepreneur you should be ever ready to take the risk to
diagnose the opportunities.Be recognised in the society- For an entrepreneur it is important that the society in which
he is working recognises him for his work in the field.
The entrepreneurial Mindset:
An entrepreneur acts this ability to innovate as a new source of raw material, a new
product, a new market or a new method of production. Entrepreneur mind is dynamic in
nature in contrast with passive adaptive behaviour.
Characteristics of Entrepreneurial mindset:
 Futuristic
 Creative
 Innovative
 Idealistic
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 Realisation of an idea
 Implementation of an idea.
Factors that drive entrepreneurial personality:
 Family upbringing: Family upbringing plays an important role in building an
entrepreneurial personality. Family motivation to take risk and to initiate a start-up triggers an
entrepreneurial personality.
 Lifestyle: Lifestyle of a person includes self-motivation, initiatives and leadership
quality which helps in building entrepreneurial personality.
 Cultural differences: It is also an important factor that influence the entrepreneurial
behaviour in the human. (Hornsby and Messersmith, 2017).
P7 Examining the extent to which background and experience foster entrepreneurship
The determinants of the business start up short and the long term success and failure
of entrepreneur lay emphasis from their education and training. The external and internal
motivational factors responsible for the business start up, the barriers faced during the initial
and continuous stages of trading and the advice and assistance are important to understand.
The well accepted ability of the successful entrepreneur is the power to identify and develop
the business opportunity. Education also assists in the growth and the development of the
enterprise as in today's environment where opportunity is often derived in the global market.
As with the help of education we can easily grab the surrounding opportunity. To find highly
qualified computer engineers, scientists ad business graduates who are behind many new
phenomena of the businesses and the management. The past experience and the background
also help the entrepreneur to start the business.
CONCLUSION
From the above report, it has been concluded that entrepreneurship is a learning
process which assists in obtaining absorbing modality into the conditions, performance and
different forms of entrepreneurial state. Besides this, it can be inferred that through
entrepreneurship small businesses create opportunities, transform and develop the
communities. Entrepreneurs creating the new ways in connecting the resources across the
cultures, economic situations and political conditions may differ from a region to another. To
improve the quality of life in that region where they are situated it is important for them to
create strategies to resolve major economic and social challenges. Further, it can be
summarized that SME are creating many job opportunities for the weaker and the poor
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sections of the society and thus raising their standards of living. For a country to keep on
growing it is necessary that all the types of entrepreneurs are working in the economy. All the
kinds of enterprise are contributing in their own ways for building the nation.
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REFERENCES
Books and Journals
Burton, M. D., Sørensen, J. B. and Dobrev, S. D., 2016. Call for Papers–Entrepreneurship
Theory and Practice January 2016 Special Issue: Careers, Organizations and
Entrepreneurship. Entrepreneurship Theory and Practice.
Caputo, A. and Poggesi, S., et.al 2017. Female entrepreneurship in developing contexts:
characteristics, challenges and dynamics.
Carland, J. C. Carland, J. W. and et.al., 2015. Seeing what's not there: The enigma of
entrepreneurship. Journal of small business strategy, 7(1). pp.1-20.
Chell, E. b. and Harris, J. D., et.al 2016. Social entrepreneurship and business ethics: does
social equal ethical?. Journal of Business Ethics, 133(4). pp.619-625.
Dimov, D. and Dimov, D., 2017. Towards a qualitative understanding of human capital in
entrepreneurship research. International Journal of Entrepreneurial Behavior &
Research, 23(2). pp.210-227.
Gibson, B., 2017. Teaching entrepreneurship and/or small business management: shifts in
content tensions in Australian Universities. In United States Association for Small
Business and Entrepreneurship. Conference Proceedings. p.716.
Hornsby, J. and Messersmith, J., et.al 2017. Entrepreneurship Everywhere... Across campus,
Across communities and Across borders.
Jaén, I. nd Liñán, F.,et.al 2017. Cultural Values and Social Entrepreneurship: A Cross-
Country Efficiency Analysis. In Social Entrepreneurship in Non-Profit and Profit Sectors
(pp. 31-51). Springer International Publishing.
Mariotti, S. and Glackin, C., 2014. Entrepreneurship and small business management.
Pearson Higher Ed.
Ramadani, V., and Ratten, V. eds., et.al 2017. Entrepreneurship and Management in an
Islamic Context. Springer Interna
Read, S. and Wiltbank, R., et.al 2016. Response to Arend, Sarooghi, and Burkemper (2015):
Cocreating effectual entrepreneurship research. Academy of management Review, 41(3).
pp.528-536.
Sarma, P. and Borah, B., 2016. A Study on Women Entrepreneurship—Its Management and
Business Problems: An Overview. Journal of Art and Social Sciences, 1(1).
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Sawang, S., Parker, R. and Hine, D., 2016. How Small Business Advisory Program Delivery
Methods (Collective Learning, Tailored, and Practice‐Based Approaches) Affect
Learning and Innovation. Journal of Small Business Management, 54(1). pp.244-261.
Schaper, M. T. and Gibson, B., 2014. Entrepreneurship and small business.
Online
The importance of small businesses in the economy. 2017. Online. Available through: <
https://www.makeitcheaper.com/blog/the-role-of-small-businesses-in-the-uk-
economy.aspx >. [Accessed on 4th October 2017].
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