Entrepreneurship and Small Business Management: A Research Report

This report provides a comprehensive analysis of entrepreneurial ventures, examining different types such as lifestyle, smaller profit, high growth, and social entrepreneurship. It details the similarities and differences between these ventures, focusing on market shares, scalability, capital, goals, skills, and risk. The report assesses the impact of micro and small businesses on the UK economy, supported by relevant data and statistics, and evaluates the differences between small, medium, and large businesses in contributing to the economy. Furthermore, it explains the importance of small businesses and startups in the growth of the social economy after Brexit. The study identifies key skills, traits, and characteristics of successful entrepreneurs, differentiating them from other business managers, and explores how entrepreneurial personality aspects reflect mindset and motivation. Finally, it examines how experience and background can foster or hamper entrepreneurship, analyzing the relationship between entrepreneurial characteristics and the impact of personal experience on successful entrepreneurs.

ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...............................................................................................................1
LO1....................................................................................................................................2
P1, M1 CARRY OUT A MINI RESEARCH TO EXAMINE DIFFERENT TYPES OF
ENTREPRENEURIAL VENTURES AND EXPLAIN HOW THEY RELATE TO THE
TYPOLOGY OF ENTREPRENEURSHIP......................................................................2
P2 AS PART OF YOUR RESEARCH INVESTIGATION, EXPLORE THE
SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES 4
LO2....................................................................................................................................8
P3 ASSESS AND INTERPRET RELEVANT DATA AND STATISTICS IN YOUR MINI-
RESEARCH, TO ILLUSTRATE HOW MICRO AND SMALL BUSINESSES IMPACT
ON THE ECONOMY......................................................................................................8
M2 EVALUATE THE DIFFERENCES SMALL, MEDIUM AND LARGE BUSINESSES
MAKE TO THE ECONOMY, APPLYING RELEVANT DATA AND STATISTICS.......10
P4 EXPLAIN HOW IMPORTANT SMALL BUSINESSES AND BUSINESS
STARTUPS WILL CONTRIBUTE TO THE GROWTH OF THE SOCIAL ECONOMY
AFTER BREXIT...........................................................................................................12
LO3..................................................................................................................................13
P5 DETERMINING SKILLS, TRAITS AND CHARACTERISTICS OF 2 SUCCESSFUL
ENTREPRENEURS THAT DIFFERENTIATE THEM FROM THE OTHER BUSINESS
MANAGERS.................................................................................................................13
M3 EXAMINING AND EXPLORING DIFFERENT LINES OF ARGUMENT
ASSOCIATED WITH ENTREPRENEURIAL CHARACTERISTICS............................15
P6 ASSESSMENT OF IN WHAT MANNER ENTREPRENEURIAL PERSONALITY
ASPECTS REFLECT THE ENTREPRENEURIAL MINDSET AND MOTIVATION....16
LO4..................................................................................................................................17
1

P7 EXAMINATION OF HOW EXPERIENCE AND BACKGROUND CAN FOSTER OR
HAMPER ENTREPRENEURSHIP WITH EXAMPLES...............................................17
M4 ANALYSIS OF THE RELATIONSHIP BETWEEN THE ENTREPRENEURIAL
CHARACTERISTICS AND THE IMPACT OF PERSONAL EXPERIENCE AND
BACKGROUND TO THE SUCCESSFUL ENTREPRENEURS..................................18
CONCLUSION.................................................................................................................19
REFERENCES................................................................................................................20
2

INTRODUCTION
Entrepreneurship is an act of setting up a business or taking the financial risk in order to
gain profit from the market and the people who build their business are called as
entrepreneurs. This is generally known as the ability and willingness to take the risk in
order to gain profit. Mainly the small business organizations are created and managed
by the entrepreneurs (Mariotti and Glackin, 2014). The main aim of the small business
organization is to provide better products and services to the customers and gain
sufficient profit from them.
This assignment will be discussing the different types of entrepreneurial ventures and
typologies of entrepreneurship. Apart from this, the assignment demonstrates the
impact of small business organizations on the economy of the country. Apart from this,
the report will be conducting a successful marketing research to create a booklet which
includes the elements of small business organizations. This booklet is mainly focused
on an entrepreneur's guide to starting new ventures. This assignment is based on the
Joe Woods who have a setup of a successful business organization (Dees, 2017).
3

LO1
P1, M1 CARRY OUT A MINI RESEARCH TO EXAMINE DIFFERENT TYPES OF
ENTREPRENEURIAL VENTURES AND EXPLAIN HOW THEY RELATE TO THE
TYPOLOGY OF ENTREPRENEURSHIP
Entrepreneurship is a process of managing and taking the risk to develop and maintain
a business organization successfully (Kuratko, 2016). The small business organizations
are developed and managed by the entrepreneurs. It has been observed that the
entrepreneurs use innovation in the organization in order to gain success and profit in
the organization. An entrepreneur should be motivated, intelligent, independent, and
confident to handle different types of situations.
TYPES OF ENTREPRENEURIAL VENTURES
There are different types of entrepreneurial ventures can be categorized on the basis of
scope, size and position. The different ventures are described as under:
LIFESTYLE VENTURE
These are one of the most important types of the entrepreneurial venture which run with
the limited amount of capital. The success and growth of this type of venture are
depending on the skills, knowledge, standards and interest of the entrepreneur (Cooper
and Folta, 2017). The main aim of these types of the venture is to gain profit and
conduct the business for a long time.
SMALLER PROFIT VENTURE
These types of ventures are generally created for gaining profit from the customers. The
small profit ventures are small in size and area and they have limited finance to set the
business. Apart from this, there is the limited number of employees in the small profit
organization which works in lesser annual revenue. These types of ventures
concentrate on the decent living and making the profit (Mason and Brown, 2014).
4

HIGH GROWTH VENTURE
High growth business ventures mainly concentrate on the growth of the business. The
main aim of these types of the venture is to gain profit from the organization. The
entrepreneur adopts different techniques and strategies to enhance the productivity and
profit of the organization. These types of ventures are created for long time duration and
they want to gain more revenue from the business as compared to small profit
organization (Giaoutzi, et al. 2016). They use different promotional campaign and
advertisement activities in order to promote their business at different levels. Apart from
this these ventures deals with the high market shares in order to increase the market
growth.
SOCIAL ENTREPRENEURSHIP
The social entrepreneurs work for the social welfare of the peoples. They provide
different benefits to the customers. The main aim of these types of entrepreneur venture
is to improve the condition of society. They want to provide the best products and
services to the customers to improve their standards of living (Lechner and
Gudmundsson, 2014).
5

P2 AS PART OF YOUR RESEARCH INVESTIGATION, EXPLORE THE SIMILARITIES
AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES
SIMILARITIES BETWEEN ENTREPRENEURIAL VENTURES
Particulars Lifestyle ventures Smaller profit
ventures
High growth
ventures
Market shares These types of
ventures are
concerned about
improving the
standard of living
and abilities (Jin, et
al. 2017). They
concentrate on
conducting the
business for long
duration than
making the profit.
The main aim of the
smaller profit
organization to gain the
profit from the market
and enhance the
profitability of the
business.
The main aim of
these types of
ventures is to
enhance the
productivity and
brand awareness of
the business. They
conduct a different
promotional
campaign for
enhancing their
market shares.
Scalability They focus on low
production and the
long duration of the
business. That’s
why the scalability is
really low.
The small business
organization has the
ability to touch the scale
easily. They work hard
to enhance the profit
and scale of the
business.
These types of the
business venture
have high
scalability. The
increased size and
shares are the
reason behind the
high scalability of
the business.
Capital/ finance The lifestyle
ventures completely
depend upon the
The small business
organizations are
dependent on the family
It has been
observed that the
high growth
6

banks for the
financial support.
members or personal
sources (Audretsch, et
al. 2016).
business
entrepreneurs are
not depending on
anyone. They have
sufficient finance to
conduct the
business smoothly.
In case they need
fund so that they
rely on their
investors.
Goal The lifestyle
ventures are
concerned with
achieving the goals
because they need
to recover the
investments they
have done for the
establishment of the
business.
The small business
entrepreneurs are
aimed to achieve the
goal. Their main goal is
to gain maximum profit
from the market.
The main goal of the
high growth
business
organization is to
gain a maximum
number of shares
and profit in the
business. they want
to gain the leading
position in the
market and aimed to
achieve all the
targets of the
business (Saleem,
2017).
Skills and
technology
In this type of
ventures, the
entrepreneur has
less ability and skills
of conducting a
The small business
entrepreneur uses the
skills and abilities of the
employees for
enhancing the revenue
They use the high
tech technological
tools and innovative
strategies to
enhance the
7

business so that
they work on
improving their skills
in order to handle
the business
successfully.
of the business. profitability of the
business.
Being based on
new ideas
The entrepreneurs
bring different ideas
and innovative
strategies in order
to improve the living
standards of people
by providing them
satisfactory
services.
The small business
organizations
concentrate on
enhancing profit as
compared to focus on
innovation and new
ideas.
The high ventures
are using the
advanced
technology for
bringing the new
and innovative ideas
in the business in
order to attract the
customers.
Being risky The lifestyle
organization can be
profitable or risky as
well. The
entrepreneur learns
new things and
introduces the new
product in the
market which can
be risky for the
organization.
The small business
venture takes the risk in
order to gain profit from
the organization
(Hernández-Perlines, et
al. 2016).
The large business
organization takes
the highest risk at
all. The large
business
organization takes
more risk as
compared to the
small business
organization
because their
investment is more
than them.
8

LO2
P3 ASSESS AND INTERPRET RELEVANT DATA AND STATISTICS IN YOUR MINI-
RESEARCH, TO ILLUSTRATE HOW MICRO AND SMALL BUSINESSES IMPACT ON
THE ECONOMY
Small business organizations work independently with smaller size and lesser revenue.
The small business entrepreneurs can work in the sole proprietorship or partnership.
The main aim of the small business organization is to gain profit for this they hire the
talented and skilled employees (Lonial and Carter, 2015). The small business
entrepreneurs concerned about the satisfaction of the customers. It has been analyzed
that the small business organizations highly impact the economy of the country. As per
the data of 2017, there are around 5.8 million small business organizations are working
in the UK. The small entrepreneurs play an important role in reducing the
unemployment and poverty rates of UK. It has been found from the research that the
small business organizations are really helpful in improving the current condition of the
economy of UK. Their output and profit are directly added to the GDP of the UK.
Figure1- the impact of small business on the economy
9

Source- (Anthony, et al. 2016)
The small business organization are developing the demands for jobs and reducing the
unemployment which is really helpful for the growth of the economy. This is identified by
the statistical data that the main aim of the small-medium size organization is to provide
the opportunity to the skilled and talented candidates to prove them self. The graph is
showing the business size and employment level of UK.
Figure2
Source- Lonial and Carter, 2015
From the above graph, it can be seen that the small business organizations contribute
in enhancing the employment rates of UK. It has been identified from the research that
the people of UK like to work with the small-medium size business organization (Abe, et
al. 2015). They encourage the talent and skills of the employees and utilize their talent
for the growth of the business.
10

11