Entrepreneurship and Small Business Management Report - Task 1

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and explores various types of ventures, including micro businesses, small businesses, scalable startups, large company entrepreneurship, and social entrepreneurship. The report then delves into the typologies of entrepreneurship, such as serial entrepreneurs, lifestyle ventures, and gender-based entrepreneurship. It also examines the differences and similarities between entrepreneurial ventures. Furthermore, the report discusses the importance of startups and small businesses in the social economy, evaluating different business sizes. It identifies the key skills and traits of successful entrepreneurs and analyzes how entrepreneurial aspects reflect motivation and mindset. Finally, it explores how personal background and experiences can impact entrepreneurship, providing a thorough analysis of entrepreneurial characteristics and their influence on success.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Various type of entrepreneurial ventures and their relation with typology......................3
P2 Differences and similarities between entrepreneurial ventures:-......................................4
M1Underatanding of entrepreneurship in both public and corporate sector..........................1
TASK 2 ...........................................................................................................................................1
P4 Importance of starts-ups and small businesses in development of social economy.........3
M2 Evaluation of different small, medium and large business.............................................5
TASK 3............................................................................................................................................5
P5 Skills and traits of successful entrepreneurs which differentiates them from other business
managers.................................................................................................................................5
P6 The way in which entrepreneurial aspects reflects entrepreneurial motivation and mindset 7
M3 Exploration of entrepreneurial characteristics.................................................................8
TASK 4............................................................................................................................................9
P7) Background and the experiences hinders the entrepreneurship ......................................9
Influence of external factors on personality of entrepreneur................................................10
M4 Analyse the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs........................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is all about the study of how the existing and the new business should
be processed so as to generate revenue for the company. An entrepreneur is a person who has a
creative ideas, skills and knowledge about the particular field in which the business is carried
out. Beside this, an entrepreneur is a risk bearer person who has the capability to take risk so as
to generate profit for the company. This project gives the brief overview about different types of
entrepreneurial ventures and their relationship with typologies (Scarborough, 2016). Beside this,
it also explains about the impact of small business on economy and determines the key aspects of
an entrepreneurial mindset. Lastly, this report focuses on how the background and experience
can hinder or foster entrepreneurship.
TASK 1
P1 Various type of entrepreneurial ventures and their relation with typology
Entrepreneurship involves innovative ideas, decision making skills, ability to forecast
future and have the capacity to implement the innovative ideas so as to achieve success in future.
In simple language, it is a discipline with a psychological feature base concept. There are
various types of entrepreneurial ventures which are stated below:
Micro business entrepreneurship: These business are companies with annual sales and
assets valuing less than $250,000 per year and there are fewer than five employees
including the owner. It is a sub category of small business and these businesses are related with
catering, child care, event planning, accounting and cosmetology. This business face many
challenges like hiring of the employees and find out good talent is hard because they are start on
a micro level and there are conduct any recruitment t processes. Government support for micro
enterprises on every level. In UK there are less then 10 members and these business also help in
the growth of the economy. They need less than 35000 of seed capital and generally do not have
access to typical avenues of business finance such as corporate credit accounts or commercial
banking services.
The government provide funding and programmes to make loans available to the micro
business so that they can run their business properly. Bank of England make a scheme to enables
and building societies to borrow mone6y from them at cheaper rate so that these businesses can
get loan at lower interest. The government of UK provide various scheme like, the start up loan

scheme, Business finance partnership and Business Angel Co-Investment Fund for these micro
enterprises. The government have taken 360,000 these enterprises businesses out of business
rates by extending Business Rate Relief for 12 months from April 2014.
For encouraging these kind enterprises the government of UK provide various awards
like The Queen's Awards for Enterprise, these awards are the most prestigious awards which
are provide to in these businesses to encourage the individuals. There are three awards which
comes in this categories like Innovation, International trade and Sustainable development.
Enterprising Britain, it is an annual competition run and funded by BIS. This award is provide
to find the most enterprising place in the UK, provide to the organisation that best promotes
enterprise and that company which the best encourages business export. The government of UK
help the unemployed people who want to star their own business the government help them
through the New Enterprise Allowance(NEA), administered by the Department for work and
Pensions. The NEA is provide its services people under the age of 18 and over and claimimg
those people who search the job. This department provide access to business mentoring and
offers financial support of around £2000.
Castle Hill Fire Protection Ltd is a micro enterprise in UK. There are 4 officers
and 1 resignation, it is an private company which is founded by Andy Stubbs in 2013. It is a
contractor based in East Anglia that specialises for fire protection products and systems for major
construction and refurbishment projects throughout the UK. This company achieve 145%
turnover in its last years. All the work of this company is covered by LPCB's( Loss Prevention
Certification Board) under passive fire protection scheme. This company covers the on site
application and installation of passive fire protection products and these protection products care
approved by installers, regulation of inspiration, testing procedures and communication of health
and safety to site operators. This company offer clients an individual certificate from the
LPCB's scheme which is recognisable to the body of the scheme. This company operate a
paperless fire stopping insulation records systems which is known as BORIS that is allows
clients to retrospectively to fire stopping products which is fast becoming the industry norm.
Small business entrepreneurship: This is an enterprise where number of employees are
less than fifty. There are approx 5.7 million small business in UK. In addition to this there are
more than 10 employees and less than 50 working in small business. Such business enterprise

require less amount of capital in order to start up new business venture. Some of the small
business like, grocery store,travel agents,carpenters, electrician and many more.
Starbucks a small enterprise and the business which this company operates is coffee. It is
a coffee company and coffee chain house. It is founded by Jerry Baldwin, Zev Siegl and Gordon
Bowker in 1971. It operates its business in coffee products and coffee chain. The government of
UK make various policies and strategies for small businesses. The government work for building
an enterprise culture, improve access to finance for small business and developing better
regulations and policies which provide benefits to small businesses and help these kind of
organisation. They provide loans to these enterprises at low interest so that they can improve the
profit of these businesses and help in achieving the growth of the company.
Scalable starts-ups entrepreneurship: This types of entrepreneurship have the
capability to achieve a global and successful status in the market. Moreover there are less than 10
employees who work working in start up business. The main purpose of this type of venture is
to search for a scalable business model (Schaper and et. al., 2014). These entrepreneur start up
their business with a view point that their main aim is to change the world.
Large company entrepreneurship: This kind of entrepreneurship venture take
maximum risk so as to enhance and operate their venture at a large scale in the market. Such
venture require large amount of capital in order to select advance technology and legislation so
as to satisfy their clients as per their needs. They possess finite life cycle and achieve growth due
to adoption of sustainability innovation strategy.
Social entrepreneurship: Such entrepreneurship supply products and services as per the
needs and requirements of people. This venture are mainly established in order to satisfy and
fulfils the needs of community. For example like, non profit and hybrid venture takes in to
consideration society needs and accordingly produce products and services so as to solve social
problems. For example – innovations in schools, law courts and democracy, etc.
Typologies of entrepreneurship: All the above mentioned types of entrepreneurial
venture have a relation with entrepreneurship typologies which are explained below:
Serial entrepreneur: This type of entrepreneur comes up with skilful innovative ideas in
order to start up new business. Such entrepreneur plays an important role in day to day
operational activities that are taking place while functioning of new company (Burns, 2016).
They come up with innovative ideas to start new venture and subsequently gives the further

responsibility of the company to other person and move on to create new progressive ideas and
new company. For instance – entrepreneurs who are interested in establishing their multiple
businesses. Marc Biles who is CEO and founder of Ratio is best example of serial entrepreneurs.
Lifestyle venture: Such entrepreneur start up their business not for the sake of earning
profit but for the slight alteration in their life style. Their major focus is on the life rewards given
to individuals and are passionate for their work they are doing. Their motive is to provide income
and occupation to the founders in the future. Additionally, their aim is to create sustainable work
life balance.
Female entrepreneur: They are the entrepreneurs whose major aim is to provide and
improve quality of life cycle and well-being of women's and girls. Approximately, 51% of shares
they have across all over world in the market (Bridge and O'Neill, 2012). Success of such
entrepreneur is mainly depend on female ability and capacity.
Male entrepreneur: This type of entrepreneur success mainly depend on the ability and
capacity of men's. Approximately, 49% of shares they have across all over world in the market.
They grow faster and are more ambitious and technical based for their task.
Public sector: It is that portion of an economic system that is controlled by national, state
and provincial and local governments. It is larger in free enterprise economies in which
government imposes relatively few restrictions on businesses and it is government oriented or
work for the welfare of the society.
Private sector: It is the part of the economy and refereed to as the citizen sector which is
run by private individuals and groups. These sectors are run with the intention of making profit.
In addition to this the segment of economy which is being carried out under the control of the
government is referred to as public sector.
P2 Differences and similarities between entrepreneurial ventures:-
Entrepreneurial ventures:- Entrepreneurial ventures refers to the forces which exert
both positive and negative impact on entrepreneurship. They have innovative skills for solving
business problems ans subscribe towards economic development. By different skills and ability
they create business through possibilities of change. In business they are motivated through their
product's uniqueness and try to obtain new ideas for the business expansion (Mariotti and

Glackin, 2015). There are different types of similarities and differences between entrepreneurial
ventures which are discussed below.
Life style entrepreneurs:- life style ventures refers to those individuals who generates
business not only for earning profits but for alteration of their individual lifestyle. Their focus is
to satisfy their consumers and owners. Life style entrepreneurs do not requires much investment,
as their purpose is to improve life style of individuals and satisfy them.
Serial entrepreneurship:- In serial entrepreneurship a person creates various businesses
with new ideas so as to achieve success in along run. After becoming profitable, it gives its
responsibility to others and then moves to different ideas and starts new businesses.
Male entrepreneurship: Business created by male individuals is known as male
entrepreneurship (Berglund and et. al., 2012). In male entrepreneurship males start a business for
control, autonomy,income and their personal satisfaction.
Female entrepreneurship:- Female individuals who organizes and manages their
enterprise is known as female entrepreneurship. They generates employment opportunities
through establishing businesses.
Similarities between life style and serial entrepreneurship:-
Life style ventures Serial entrepreneurship
Lifestyle ventures start business for social
welfare as it's purpose is to improve
individuals lifestyle.
In serial entrepreneurship, individuals starts
business and after it's success it gives it to
another as, its purpose is to give society new
ideas.
It's main motive is to satisfy customers by
improving their manner of living.
It's aim is also consumer's satisfaction through
new and innovative ideas.
These ventures operates not only with the aim
of earning profits but to improve their lifestyle.
These entrepreneurs also start business not for
profit earning but to introduce people with new
ideas.
Differences between lifestyle and serial entrepreneurship:-
Lifestyle ventures Serial entrepreneurship
These entrepreneurs do not work on exit These entrepreneurs work on exit strategy as,

strategy, as their purpose is to make lifestyle
effective.
they work until the success of a business to
give it's responsibility to another and move into
new one.

Lifestyle ventures work to earn profit for
adventures, to introduce people with new
world.
Serial entrepreneurs work to grow profits for
both investors and their business.
These ventures make efforts to achieve their
life goals.
These ventures concentrates to achieve
business goals and make efforts to grow their
business.
Similarities between male and female entrepreneurship:-
Male entrepreneurship Female entrepreneurship
These entrepreneurs starts businesses and work
to earn profit.
Similarly,female entrepreneurs also starts
enterprises to achieve desired profit.
These are passionate about their work, as their
aim is to have control and autonomy (Schaper
2016).
These entrepreneurs also work with passion, as
they are enthusiastic about their work.
Male entrepreneurs are personally and
professionally goal oriented
Similarly females also personally focus on their
goals.
Differences between male and female entrepreneurship:-
Male entrepreneurship Female entrepreneurship
Here, business is started by male individuals. While, in this enterprise is regulated by
females.
Male entrepreneurs are young and competent
innovators.
While, females are young but not experienced.
These entrepreneurs are very driven and
capable.
While these entrepreneurs have lack of ability
for growth.
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M1Underatanding of entrepreneurship in both public and corporate sector
Entrepreneurship is not entirely a private sector phenomenon it is usually related with
different private sector activities and more specifically with small business enterprise to medium
enterprises. Public sector entrepreneurial activity makes an exploratory comparative analysis of
the different components which are applicable from private entrepreneurship sector.
TASK 2
P3. Interpret and assess relevant data and statistics to illustrate impact of micro and small
business on economy
Small and micro business can make a vast impact on economy. They play an essential
role in economy by providing employment, goods and services. Generally, UK performs and
functions on three types of business namely, Micro, Small, Large. All three businesses affects
UK economy as a whole. Small businesses are the backbone of UK economy because their
contribution in economy is vital in creating new jobs and opening new market. Various micro
industries performs and operates at a large scale in most of the countries. Small and micro
businesses have greater flexibility in level of production than large firms (Bennett 2014). They
operates their business at low capital,lack of support and improper ideas but it does not affect
their ability of working in any way. They usually runs with limited capital or resources but are
comparatively high in profitability which helps them to grow faster. Small-businesses are
important for economy to grow. Micro and small business owners have skills and ability to
manage all operational and executional activities. In this respect, government policies also
affects micro or small businesses, due to changing to policies frequently. Some enterprises have
to pay higher taxations in transporting their goods.
Different types of businesses such as Micro, Small and Medium are as evaluated
below:
 Micro: It is a business which operates on a very small scale. It is a business which
employs only nine people or fewer and having a balance sheet or sales turnover approx
£2 million. This business come up with some innovative ideas which helps them in
maximising their turnover.
 Small: In this company, there are less than fifty employees and having turnover approx £
6.6 million. In this organisation, functions and operations are larger as compared from

micro businesses. The main motto of this business is to increase their sales turnover in
allotted time period.
 Medium: Under this, workers working in this organisation are less than two hundred
fifty and having sales turnover less than £ 25.9 million. Functions of this business is
comparatively large from micro and small business. The main objective of this business
is to achieve long term success and growth in minor period of time.
In this context, some growth in employment and cash flow of nation are as examined
below:
 Higher cash flow: It helps to create liquidity in small and micro industries and enables
them to sustain its operations which led in generation of higher profits. This is a vast
importance for health of all businesses and their success in future. Establishment of small
and micro enterprises helps in growth of economy (Piperopoulos and Dimov 2015). In
this way, increase in small businesses results in higher cash flows which is helpful for
government in development of the country.
 Employment generation: Small and micro scale enterprises are more efficient for
development for nations economy as they create and provide employment opportunities
to lower class and low income people. Small business helps to boast the economy from
economic crises like, unemployment, poverty, etc. So in this way, small-business known
as an important drivers for the growth of nations economy.
The impact of small and micro enterprises on the economy can also be explained with the
help of following graph:

(Source: Impact of small business on growth of economic development in UK, 2017)
From the above graph it has been analysed that, Small business sector plays an important
role in providing employment opportunities to most number of people. It has been analysed that
the SMEs are contributing more in growth of economic development of UK in past and recent
years. The above graph also illustrates that growth in current year (2018) is more than the growth
in preceding year (2008), as it has increased continuously (Sánchez, 2013). This will led to
enhance more growth opportunities and will be more successful in future.
P4 Importance of starts-ups and small businesses in development of social economy
Brexit is a decision in which United kingdom have addressed the European union to
become autonomous nation. There was a referendum on 23rd June 2016 where the voting session
was conducted and the number of votes of Britisher were in favour of leaving EU. Thus on 29th
march 2019 Britisher exit from EU after winding up the give-and-take process .
3
Illustration 1:
Impact of small business on growth of economic development in UK