HNC Business Unit 9: Entrepreneurship and Small Business Report

This report delves into the realm of entrepreneurship and small business management, examining various types of entrepreneurial ventures, including small businesses, scalable start-ups, large company entrepreneurship, and social entrepreneurship. It explores the similarities and differences between these ventures, highlighting their roles within the UK economy. The report analyzes relevant data and statistics to illustrate the impact of micro-businesses, emphasizing their significance in driving economic growth and job creation. Furthermore, it identifies the characteristics and abilities of successful entrepreneurs, assessing how entrepreneurial personality traits reflect motivation and mindset. The report also explores the impact of background and experience on entrepreneurial endeavors, providing a comprehensive overview of the subject matter.

ENTREPRENEURSHIP
AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1. Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurial....................................................................................................1
P.2. Explore the similarities and differences between different entrepreneur ventures.........2
P.3. Interpret and assess relevant data and statistics to illustrate how micro business impact on
the economy............................................................................................................................4
P4 Significance of small businesses and business start-ups to the growth of the social
economy.................................................................................................................................5
P5 Characteristics as well as abilities of successful entrepreneur .........................................6
P6 Assessing the way aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mindset..........................................................................................................8
P7 Identifying the way background as well as experience can hinder or foster
entrepreneurship.....................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In this documentation, this assignment defines about several kinds of entrepreneurial
ventures in the country operating effectively and making contribution in respect to proper
development of nation's economy effectively. Moreover, this assignment also refer to exploration
of similarities and difference between different kinds of entrepreneur ventures in the country
efficiently. Apart from it, assessment of relevant data and statistics to small and micro business
contribution in respect to growing UK's economy effectively. Furthermore, this study also
describe about different kinds of characteristics and traits in terms of become a successful
entrepreneur in the country effectively and assessment of some essential aspects by which an
entrepreneurial personality can reflect to motivation and mindset as well.
TASK 1
P.1. Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurial
An entrepreneur is a person who make efforts in order to implementation of their creative
ideas on specific business and make conversion of fresh idea into new product and services in the
business in more relevant form. They need to organise, manage and design new idea in effective
ways in respect to achieve desired goals and objectives of business entity in more relevant
manner. In case of venture Eddison's GE group adopts large business venture strategy in order to
creation of more competition in the market in more relevant form. They have some areas in
which effective development can be executed effectively (Olson and Staley, 2012). Varied types
of entrepreneurial venture presented here and they are operating their business function in their
specific industries efficiently.
Small business entrepreneur venture: In case of UK, there are multiple numbers of
entrepreneur is operating in the nation which is making contribution in supporting of country's
economy effectively. There are 5.8 million small business are operating in the UK. Small
business entrepreneur is those business entities, who start-ups their business activities at small
level and furnishing small products and services according to customer demand in market
effectively (Blackburn, Hart and Wainwright, 2013). There are mostly small business ventures
are operating in the countries which is, Grocery stores, Hair saloons, consulting services,
Travelling agents, electricians, Plumbers etc. all they have supports from their family to run thin
business in the market properly and earn effective generation of the profitability in more relevant
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form. They furnishing funds for their small business via family and small business loans
institutions.
Scalable start-ups entrepreneurial: This type of business is also same like small
businesses. This is the type of entrepreneur, which have a specific vision about to changing the
world effectively. They set up proper vision and make efforts in respect to accomplishing their
pre-determined goals and objectives in more relevant form. They attract several crazy financial
investors on their particular venture in order to providing of proper capital for running of
business in the market effectively (Bridge and O'Neill, 2012). They employee the best business
minds in order to run their business and furnishing innovative products and services which have
potential to change the world effectively. They used some strategy to enhancement of their
business in the industry in more rapid manner.
Large company entrepreneurship: This is also a big kind of business in the country who
make wide range of contribution in order to growth of nation's economy in relevant form. There
are several kinds of large companies are operating in the UK efficiently and generation revenue
from the market in effective form. Large companies have finite business cycle in the industry in
relevant form. They have large numbers of production level in the industry and furnishing
products and services in large volume in the market according to customer test effectively. They
make efforts to make something new product and services in the market for new customers in the
market and they have high rate of risk in the business.
Social entrepreneur venture: This type of entrepreneur is also running in wide volume in
the UK effectively and furnishing effective product and services according to needs in various
communities in effective manner (Brenkert, 2017). They deliver such kinds of products and
services by which social welfare can be executed in relevant form. They find out such type of
products by which social needs in the communities can be fulfilled sufficiently. They are majorly
work for non-profitable business in the country effectively.
P.2. Explore the similarities and differences between different entrepreneur ventures
Similarities and differences between different entrepreneur ventures:
Small business entrepreneur venture Large company entrepreneur venture
Small business entrepreneur works for
providing small type of products and services
in the market in effective manner as per
Large company manufacture products and
services at large scale in order to fulfilment of
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customer needs.
In case of opening of small business venture in
the country, they need small scale of
investment in respect to opening of new
business in the market in effective form (Pott
and Pott, 2012).
Small business entrepreneur does not have
broad vision to accomplishing of high amount
of profitability from the market. They ear for
fulfilment of their small needs effectively.
Small business works for satisfy the each needs
of their customers in effective form.
customer demands effectively.
In terms of starting-up a large company in the
nation, the business owner need to make use of
large capital and wide range of investors in the
company effectively.
Large company have wide range of scope of
vision and mission statements by which they
can make more efforts in order to generate
more revenue from the market efficiently.
Large company also deliver appropriate
product and services as per fulfilment of each
needs of their customer sufficiently.
Scalable starting-up venture Social entrepreneur venture
They have particular vision to changing the
world by introducing innovative product and
services effectively.
Scalable business owner need to hire skilled
and more talented employees in order to
accomplishment of organisational goals and
objectives effectively.
They work for social welfare for developing
innovative product and services in effective
form.
Social entrepreneur venture works for
development in social services and provide
innovative products and services as per the
social needs effectively (Drucker, 2014).
Social venture owner no requirement for hiring
of extra talented employees in order to
furnishing effective services in the business in
more effective manner.
Social entrepreneur venture also provides
innovative services for social welfare in the
country effectively.
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P.3. Interpret and assess relevant data and statistics to illustrate how micro business impact on
the economy
Variety of small and micro businesses is operating in the country effectively and
furnishing sufficient product and services as per market demand in the nation effectively. In case
of UK, there are varied of small and micro businesses are running in efficient form and
generating more revenue from the market in proper manner (Barringer and Ireland,2010). As
small businesses are backbone of the UK economy and making large number of contribution in
respect to growth of the nation economy appropriately.
 Micro firms= less than 9 workers and turnover under 3 million
Table 1 : Total Entrepreneur in United Kingdom 2016-2017
Country Total Entrepreneur %SME
United Kingdom 5.7 million 94.6
From this table, it has been seen that, there are wide range of small business are running
in the market and generating revenue from the market in effective form. There are total 5.7
million small entrepreneur venture is running in the country efficiently and making contribution
into earning high amount of profitability volume from the market in sufficient manner. From the
statistics, it could be said that, there are wide range of small business are running in the country
and making great contribution in order to sustain in the market in relevant form. Beside on it, it is
also started that, they have small and micro business plays very essential role in respect to
exclaim the national economy of UK effectively. From the analysis, it has been seen that, due to
large number of small and micro business in the country, more than 64% employees are working
in small entrepreneur ventures in the country properly (Herrington, Kew, Kew and Monitor,
2010). Due to growing globalisation in the nation, it has been stated that, it helps to minimise the
unemployment in the nation appropriately. Small and micro business also making contribution
in the country in order to implementation of innovation in various new businesses. They are
being cause of raising innovation in the country effectively because of, in today's world, there are
several kinds of new demand and needs is generating in the market and according to them, small
business making innovative product and services in order to fulfilment of customer’s needs
effectively. With the help of these activities, they are generating more revenue from the market
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by which national economy of the country growing in rapid manner in the country. It has been
seen that, there are numbers of social, scalable and SMEs are working in UK and generating
sufficient amount of revenue which can making contribution in economic development of the
nation. Hence, it could be said that, small, medium and scalable organisations are making great
contribution in raising economy of UK upward.
P4 Significance of small businesses and business start-ups to the growth of the social economy
Small medium enterprise especially in United kingdom contributes a lot towards the
economic development of nations as well as generation of employment opportunities for local
people in the country. This is the reason small medium organisation in UK are supported by legal
authority. Small medium enterprise has assisted the nation in developing as well as increasing
competitive strength. It has also helped nation in maintaining as well as improving financial
performance. Small medium enterprises has also been recognised as the significant drivers that
has supported United kingdom in fostering growth (Mason and Brown, 2013)
Important contributions made by small medium enterprise
Small medium enterprise are recognised as a firm with few employees. These
organisations are small in terms of the size , operations, number of workers etc. Small medium
companies has made crucial involvement or participation in development of job opportunities
for citizens of the country. These firms have played the essential role in encouraging society to
improve their living standards. Small medium has assisted country in encouraging competition in
national or local market. Due to rise in competition, there is increase in turnover rate in market
which has provided effective and productive organisations an opportunity to expand core
business operations or activities which has resulted into addition or improvement in
productivity.
Economic growth- Small medium enterprises has taken high initiatives to support nation in
economic developments by processing or creating correlation ship between growth and
innovation in the industry in which the firm is operating its business. Small companies also help
in stimulating and fostering economic growth by providing employment opportunities to people
who may not get employment in big organizations. Small medium companies are considered to
be as the backbone of UK economy.
Small medium enterprise has encouraged government in the nations to facilitate
innovations and bring positive change within the country. This strategy has further supported
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nations in attracting more number of investors and encouraging them to make continuous
investment. These firms have also supported nations in conducting innovations and bringing
drastic improvement in economic conditions. Small medium organizations has also helped
government in development of new fiscal as well as monetary policies for controlling the
transactions or cash flows.
Small and micro-businesses assist to make the United kingdom more competitive and
attractive to visitors as well as investors. These organizations are considered to be better fort
providing training people related to development of innovative products. Small medium
enterprise has assisted the government by sharing the ideas of generating new source of income.
These firms have also helped nation in implementing new solutions and improving upon present
ideas.
Schools and local legal authorities-When people in the nations support domestically established
small medium enterprises, these people are basically giving money back to their native
community. A growing native organization will able to gain or generate high levels of revenue or
profit, which means that an organization is required to pay higher tax rates which also include
national taxes. This money is then being utilized for local police and fire departments as well as
schools. This revenue is also being used for economic development of the state or nation (Zortea-
Johnston, Darroch and Matear, 2012)
P5 Characteristics as well as abilities of successful entrepreneur
An individual those who wants to become successful entrepreneur requires to developed
specialized skills, core competencies and need to gain special knowledge about business. As
these capabilities will help business owner in differentiating themselves from the other people
within an enterprise. In addition to these skills, entrepreneur also have high risk bearing capacity
which allow them to gain additional benefits or high return on their investment. Successful
business owner also have high influencing power, leadership qualities which enables them to
motivate other people at workplace to work for the Benefit of company. Entrepreneur also have
decision making power which allows them to make suitable judgment for business (Bewayo,
2015)
The other characteristics of successful entrepreneur are -
Freedom directed-The quality of successful entrepreneur is that they plan to established their
own companies by gaining the sufficient experience by working with big organizations.
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Successful business owner has learning attitude which allows them to enhance their knowledge
about the latest business trends. These people believe in making their independent decisions.
Unique management skills- These people have good analysing as well as observation power
which allows business owner to develop effective plan for introducing new products or services
in the market. Unique management abilities and knowledge about the business support
entrepreneur in developing the new goods and quality of products produced by them in
determining their success factor.
Persuasive -Successful entrepreneur have high potential as well as capability to deal with
complex as well as difficult situations. These people have strength to convert risk into
opportunities.
Visionary- Successful business owner have special quality which helps them in determining the
future of company. Visionary power also supports entrepreneur in establishing objectives or
targets for an enterprise and identifying the appropriate techniques to achieve the same
(Eckerson,2010)
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Comparison between traits, abilities as well as competencies of manager and an
entrepreneur.
Important difference between the quality as well as characteristics of both persons
working in an enterprise is that business owners is recognized as an individual who establish as
well as manages their own business. On the other hand, managers are those people who works
for company and are accountable only for managing people as well as business activities.
Business owners is recognized as an individual who have high risk bearing capacity and
potential to transform an idea into reality by making usage of the opportunity and resources
available. On the other hand, manager has high influencing power which enables them to
motivates other people to implement plans or strategies at workplace.
Entrepreneurs are more conscious about the business as compared to managers. On the
other hand managers in an organization are more concerned about the end products (Ashley May
Organizational Change. 2017)
P6 Assessing the way aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mindset.
Aspects of Entrepreneurial personality of Edison:
There are some aspects which reflect Thomas Edison which reflect his entrepreneurial
motivation and mind set Thomas Edison was a a very successful inventor.
1.Tenacity: Thomas Edison tried 10000 time for overcome to failures. Thomas Edison have
ability that determine to succeed. In inventing of perfect electric light he tried more then 10000
times to overcome for failure that shows his mindset and dedication towards the objective.
Tenacity towards the objectives reflects his entrepreneur mindset. For example entrepreneur
never call back the plan which he started and determine the all courses of action which needed to
achieve their objectives and goal (Yildiz and Karakas, 2012)
2.Passion: Most entrepreneur that belies they will change the world through their mindset
Thomas Addison was one of them. Passion toward the objectives shows his greatest mindset skill
and courses of action which reflects his entrepreneur aspects. Edison emphasizes his
achievement to handwork. On his 80th birthday he declared that he formation a company which
takes research and development of rubber that was relentless, will power dedication and
determination are only to take a person so far but passion is unstoppable.
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3. Vision: Entrepreneur often face nayasyers, because Thomas edision see the future before the
future plays' out and Thomas Edison was several steps ahead in the market that makes him
visionary person. Vision of inventing electric light in 80s era can't be supposed but Thomas
Eddison have unique vision to invent electric light that make him several steps ahead from the
other people. Just like an entrepreneur every entrepreneur have a unique vision and different
mindset which make him the different from other.
Beware of the distraction in the way of success. Edison spent most of his lifetime in spending in
his innovation. Edison pay his ability to the determine the viability of his invention. Few
entrepreneurs are likely experience into the objectivity of any company. Perseverance Thomas
Edison continued steadily his belief on his work after 10000th time failure he continue trying to
invent the electric bulb that shows his mind set and skill set. Thomas Edison have self
confidence on his invention that he created . Brought new ideology that makes him several steps
ahead from the other people. Thomas Edison said that genius is one percent inspiration and 99
percent perspiration. Edison slowed his creation in 1911. from startin edison was highly
competitive and wants to several steps ahead from other that makes him greater leader of all the
time. Edison was highly ambitious and hard working person that makes him a good leader and he
puts 16-hours days fulfilling his working even the age of 65 he worked 112_hour week that
shows his desperation and tenacity toward the work and objective. Edison was meticulous in his
planning he prepares all raw models of their inventions make careful of his ideas and things he
also records all their inversion and skill set. Edison was curious, ,meticulous,competitive and
hard working that makes him several steps ahead for others. Edison was curious about his
inventions and completing all courses of action to execute their objectives and plan (Davidsson,
and Gordon, 2012)
P7 Identifying the way background as well as experience can hinder or foster entrepreneurship.
Background and experience can directly affect the propensity of individual to become
successful entrepreneur. Entrepreneurship skill are must required for every successful
entrepreneur. Fostering entrepreneurship contains level of involvement(condition,crucial
element,impact). For example:
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1. Philip green: Philip green is the current CEO of Arcadia group. Arcadia group is a
conglomeration of various popular retails company. Background and experience of Philip
green- green was drop-out from the school at the age of 15 to work for a shoe importer
and set up his own company 6 years later and worked his way up from there. Philip green
started his first business at age of 21 importing jeans from the far east to sell in London
he has a mindset of successful entrepreneur.
2. Richard Branson: Richard Branson was dropout from the school at the age of 16 and
setup a magazine. His father was worked as a barrister and mother was a flight attendant.
At the age of 16 he started a youth culture magazine known as Student and sold that
company $8000. In 1969 he had the idea to began a mail order record company known as
virgin. Richard has no record in experience in any company he enters in every emerging
field of every sectors. THE VIRGIN GROUP Eventually reached in more the 35
countries and nearly 75000 employees handling the operations in all over global
operations. Richard Branson have a unique idea and concepts that makes him several
steps ahead from others.
3. Elizabeth: it can easily analyse that lack of technical capabilities or skills , it
is very difficult for Elizabeth to create effectual a swell as appropriate business
strategies or plan and implement the suitable business model in the market. The
utilization of this fact in case 1.She is initiatory to gain advice from experts
in order to develop understanding about the suitable time for converting or
changing service line. Elizabeth also have Instinct quality that has allowed
her to leave her job and start own company.
CONCLUSION
Project has concluded that there are several forms of entrepreneurial ventures and they
have direct relationship with the typology. Assignment has highlighted the important difference
between qualities of manager as well as an entrepreneur. It has also explained the several
characteristics and skills which is required to be posed by an individual in order to become
successful business owner. It has been concluded from the study that small medium enterprises
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