Exploring Entrepreneurship: Small Business Management Ventures

This report provides a comprehensive overview of entrepreneurship and small business management, examining various types of entrepreneurial ventures, their similarities and differences, and their impact on economic factors. It assesses data to demonstrate how micro and small businesses influence the economy, highlighting their role in job creation and contribution to GDP in the United Kingdom. The report also delves into the characteristic traits and skills of successful entrepreneurs, differentiating them from other managers, and explores how their backgrounds and experiences can either hinder or foster entrepreneurship. The analysis includes discussions on scalable start-ups, large company entrepreneurship, and social entrepreneurship, emphasizing the importance of innovation, market trends, and social impact. Concluding with insights into how these ventures contribute to social inclusion and community development, this document is available for further study and research on Desklib, a platform offering a wide array of solved assignments and study resources for students.

Entrepreneurship and small
business management

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Different types of entrepreneurial ventures and how they relate to typology of
entrepreneurship..........................................................................................................................3
P2 Similarities and differences between entrepreneurial ventures..............................................4
Differences between entrepreneurial ventures.......................................................................5
LO 2.................................................................................................................................................5
P 3 Impact on economic factors...................................................................................................5
P4. Role of small business and start-ups to impact on social economy......................................7
LO3..................................................................................................................................................8
P5. Characteristic traits and skills of successful entrepreneurs...................................................8
P6 Aspects of the entrepreneurial personality and entrepreneurial motivation and mind-set...10
LO4................................................................................................................................................11
P7. Founder’s Background and experience can hinder or foster entrepreneurship...................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship and Small Business Management gives such learning experience which are
unique to the students who want to start new business or see the scope of employment in the
growth-oriented like small businesses. This program will be helpful for the students who are
searching career options in the small business, want to gain knowledge of entrepreneurship and
develop skills related to venture management. This report will discuss different types of
entrepreneurial ventures and how they relate to typology of entrepreneurship and give
similarities and differences between them and also assess data to show how micro and small
businesses impact the economy. Further it will explain the importance of small business and
start-up and determine the characteristic traits and skills of successful entrepreneurs which
differentiate them from other managers. This study will also assess the aspects of entrepreneurial
personality reflect entrepreneurial motivation and mindset and also using examples how
experience can hinder foster entrepreneurship.
P1 Different types of entrepreneurial ventures and how they relate to typology of
entrepreneurship
Types of entrepreneurial ventures
Small business entrepreneurship: in the world there are many small businesses they do not
generate much revenue but make some profits for their living and to support families. These
businesses are provided funds by friends/family, or they take small business loans or personal
funds. These businesses do not attract venture capital. There examples include grocery stores,
consultant, hairdressers, electricians, plumbers, restaurants etc. mostly they are independently
owned (Shaw and Sørensen, 2019). They aim to run the business for long term which are
sustainable and profitable.
Scalable start-up entrepreneurship: in this a company is started by entrepreneurs which
believes that they can change the world by their vision. Venture capitalists give funding to such
businesses, and they hire quality workforce. Venture capitalists normally fund to grow the
business. It includes high risk but their returns are amazing. Examples are Facebook, whatsapp,
online shopping application, Instagram etc. They bring innovation and are also known as
innovative companies. These companies mostly are related to technology and serve products and
services related to technology (Robert and at.al., 2017).

Large company entrepreneurship: large companies sustain through innovation. They offer
new products in the market and attract customers. They have efficient research and development
team who observe market trends and launch new products which can meet the customer needs.
This is done by the companies through partnership with other companies or buying companies.
Examples are google, Samsung, amazon etc.
Social entrepreneurship: to serve the society or to solve the social needs, entrepreneur make
products or services (Dijkhuizen, Veldhoven and Schalk, 2016). Their objective is to serve the
world and not making profits. It includes profit, non-profit and hybrid. They make business on
innovative solutions. Examples are company work on solving global health issues, non-profit-
making companies, company solving issues of developing companies etc. these types of
companies also receives donation. They improve life and create social impact.
Types typology of entrepreneurship
There are many types of typology of entrepreneurship while doing business which are as follows:
Lifestyle firms: in this the entrepreneur implement various ideas so that employees lifestyle can
be designed in a good manner (Morris and Kuratko, 2020). This encourage and motivate the
employees when they attend the meeting with other organization. This is beneficial for the
employees as well.
Entrepreneurial firms: this is the company which work under big operational unit which
include few skilled members of the organization. Entrepreneurs have the idea to transform their
operational unit into big operational unit.
Salary-substitute entrepreneurs: these firms try to make better salary structure by
implementing various ideas which employees get at the month ending for working in the
organization.
P2 Similarities and differences between entrepreneurial ventures
Similarities between entrepreneurial ventures:
In small business and scalable business fund providers are the same like family, friends, small
loans, personal funds etc. they both want to make profit. They both want to be in the long term
business. Large company fulfil the needs of the society whereas social entrepreneur also want to
serve the society. Large and small business both want to earn profit. They both create jobs in the
society and reduce the level of unemployment. Scalable and large business both bring change in

the world from their new ideas. They understand that innovation are very necessary and if want
to create good customer base then they have to launch innovative products in the market and also
they can do business for the long time. They also hire people who are skilled and help them in
launching innovative products by giving them ideas. They evaluate the market trend. The biggest
similarity between all these ventures are they all want to survive and do their businesses for the
long time period, and they all have to provide good working environment to their employees.
Differences between entrepreneurial ventures
Main difference is that all of them have different types of businesses. Like small business are
restaurants, consultants these types of businesses passes from one generation to the other
generation. They are not able to attract venture capitalists. They do not start the company to
change the world. Do not look much for quality employees. Less risk and less return while
scalable start-ups are the companies which can be the IT companies that do software
development or making applications or some medical device companies. Venture capitalists do
funding in this. They wish to change the world through its vision. Hiring of quality of
employees. High risk and high return involve. The main aim of these businesses are to make
profit and give benefit to the investors whereas the goal for large businesses are different their
main goal and objective is to make good revenue or generate good profit, and they give
employment to many people (de Souza Sant’Anna and Nelson, 2017). They develop new product
for making profit and goal of the social companies are they want to serve the society and erase
the problem which society is facing. Their objective is not to generate revenue, they want to
make this world a better place to live. For only making more profit there is no development of
new product. Innovation or new technology is not adopted by all the ventures because each
company have their own idea of profit and their planning related to the market share are also
different.
LO 2
P 3 Impact on economic factors
There is about 47% contribution on the GDP of small and micro businesses in United
Kingdom which is good for the economic condition of the country and there are a lot of factors
which are being influenced from this condition. The government is also supporting small and
micro businesses in the country since they are providing a lot of the population in the country
with employment which is going to be good for the income rates in the country as well. There

are loans and interest rates on these loans have been reduced so that there is a support which the
government is going to give to the people so that the satisfaction level is going to be higher.
Though the government is working on free start up programs for the population which is going to
make the unemployment rates even fall further in the country which is going to be a great
achievement by the government in the country. From the enterprises there was about 99% of the
population as of 2016 who got employed which was monitored that year (Fitzgerald and Muske,
2016). The researches have said that the government of the country is working upon this factor
so that the lifestyle and the satisfaction of the population are going to improve in the future
which is a great factor for a long run. The contribution which these small businesses are having
in the market is about £2.0 trillion as of 2018 which is a large amount in the country.
Figure 1: SME's in UK
(Source: Essential Facts You Should Know about SMEs in the UK, 2019)
According to the data above it can be analysed that the small business had a turnover of
33%, employment rates are 48% and businesses is 99.3%. The medium businesses have
employment rates to 12%, turnover of 14% and businesses in the market are 0.6%. the large
businesses in the market have a rate of employment of 40%, turnover of 53% and businesses
present in the market are just 0.1% in the country according to the data. The largest impact which
is present in the market is due to the small businesses which is why the government is also trying
to support them so that there are going to be more businesses which are going to start up in the
country which is going to be a great factor for the population as well. The small businesses are
going to face a lot of risks and management of them is not going to be right due to lack of

experience and knowledge of the market but the government is trying their best to make them
understand this factor and make the most in the market. The demands of the customers is just
increasing which is why it is important for the market to provide the customers with varieties in
the products and services which are present in the market which is going to make the economic
factor of the country also improve for the best which is going to be a great factor.
P4. Role of small business and start-ups to impact on social economy
There are number of small businesses that are started in different part of United
Kingdom. It provides support large number of workers and hence contributes in decrease
unemployment rate in country (Cairney, P., 2018). Entrepreneur concept has highly impacted
large number of people in country and most of them fed up from routine which did not make any
major change in personal growth. Creativity ideas and innovation leads to increase small
business which provides variety of services and product. Customers have multiple options
related to product and services because of SMEs. People focus not only on increase financial
stability by running such entrepreneurs but also plan to create a image that can be recognised by
everyone in world. Tourism, baker shops, supply chain services etc. are example of it which
highly contribute in growth of country and make economy inclusion of citizens in country. There
are number of large companies which resistant to change such as do not much support changing
taste and trend of customers and hence it give small size firm to expand business. SMEs start
with concepts that are unique and can attract people in country for example providing organic
product because customers in Britain after COVID shifted their mind towards healthy lifestyle.
Most of Businessmen in country are youth which have high energy and commitment to achieve
higher goals by innovative ideas. Market is in hand of few big companies in any industries and it
become necessary that this business come into market to break their lobby and provide product
& services to customer on reasonable price and hence down inflation rate in country. Social-
inclusion highly supports by starting SMEs and it creates wealth for all types of people in
country. Leadership quality is developed among entrepreneur who inspire other people in
country for strating their own business and breaking class system in country which is necessary
for society. Local business gives employments to people that are living near to firm and hence
migration from decrease which will be helpful in preserving culture and tradition of place. It
develops inclusive society which creates opportunities for all. Citizens in country decrease
dependency on big firms which are far from their home and also reduce monthly expenditure of

people and also save time that can be utilised in other work. Social economy highly supported by
such business as most of this firm focuses on developing product that can be unique and
futuristic for example: Eco-friendly tour concept of tourism industry highly supporting
sustainable development of environment as well as creating large number of employment for
people in country and also helping in creating health life. Government also support SMEs by
providing funds and loans so that economy will be contributed by all and people will less
dependent on others for job (Kerr, Kerr and Xu, 2017). There are number of policies framed by
Britain parliament for supporting local businesses in country which help entrepreneurs in
establishing themselves in front of big firm in country.
LO3
P5. Characteristic traits and skills of successful entrepreneurs
There are number of quality which imbibed and come from experience in entrepreneurs
which distinguish him from others and hence create a image that can impact stakeholders such as
customers, employees, investors etc. Business person able to difficult situation careful and can
have futuristic approaches which help in taking business to next level and increase profit share
by innovative ideas.
Creativity
It plays important parts in successful running business as people with less resistant to
changes are more successful (Neumeyer and et.al., 2019). Entrepreneur has ability to think in
different ways so that new ideas can be chosen in changing business and able to gain competitive
advantage with the help of it. In world people welcome new innovation and because of this
extraordinary quality able to provide product and services that support changing taste and trend
in country. There are number of companies which are successful because of innovation and
creativity in business such as Tesla’s owner which develop electric cars for customers around
world and hence distinguish from others.
Passion
It plays important part in running business without passion no company can achieve
higher goals or attract large number of consumers in country. Entrepreneur highly dedicated
towards works and their profession become passion which helps in enjoying and running firm. It
help owner on focusing aims and objectives of firm and create a multiple solution even difficult
times which help in gaining market as well as customer. Entrepreneur target their goals and

remain motivated towards it because of passion and hence it evolve new ideas and strategies
which can highly beneficial for changing market in country.
Motivation
Founder’s of SMEs highly motivated towards their work and also inspires other with the
same quality. Setting small goals can highly beneficial as power of person remain focused
throughout work and hence able to increase market share in times of globalization. Positive
mindset of people again helps in taking firm to next level and increase business around globe.
Entrepreneur motivates employees by giving incentives, increment, recognition etc. which help
in gaining their loyalty. It increase quality, efficiency and productivity of work and help firm in
upcoming challenges as well as opportunities. Business people have a positive power that attracts
everyone and it comes of motivation and high energy.
Self-confidence
Entrepreneurs have high confidence which help in taking business to next level and
attract customer by enthusiasm that remain in their quality. Founder of SMEs are confident
towards decision and it also motivate stakeholder in supporting business and hence they able to
gain competitive advantage in changing business and increase profit share of firm. They cannot
switch or lose these characteristics’ which can be highly beneficial in changing market and gain
customers. It distinguishes them in market and also increases their motivation for any types of
changes that are required by firm.
Leadership
Founder of SMEs are leaders which are highly motivated and optimistic for any types of
work which support growth of firm. They inspire stakeholders by taking quick decision in any
situation and most of time they prove which support financial growth of firm and contribute in
increasing profit share in changing business (Yun and et.al., 2019). Most of business owners of
use transformative and democratic leadership style for businesses and hence give more autonomy
to workforce at work-station. They support workers in their work by providing resources as well
as solving various types of difficult problems. Entrepreneurs are leaders which able to dig out
innovation and creativity skills of employees.
Visionary
SME’s owner has vision which distinguishes them from other. They remain dedicated
and motivated for their work which helps in achieving goals by visionary ideas as well as

innovation. Founders of such businesses remain focused on targeting goals and increase profit
share in changing business (Petridou and Mintrom, 2020). They make a plan which focuses on
sustainable development of firm and frame strategies accordingly. Training and development
programs are provided employees according to vision and also clear the way in which
organisation will be able to achieve it and increase market share by it.
Risk Taking
They can easily take risk for any types of work which create a unique image in front of
stakeholders. Any type of decision taken easily them and they do not afraid of losing and hence
ability of risk taking help in achieving higher goals on time with increase profit share. Changing
business requires solving quick problem as well as leaders order on time and hence they are
expert in it. Because of past experience and creative ideas they able to tackle difficult issues and
can easily overcome from it. It helps in gaining competitive advantage and impact on financial
growth of firm.
Communication and Networking
Founders of small business have strong communication skills which help in influencing
stakeholders such as they easily attract investors for business, motivate employees for work,
attract media for company etc. Owners of SMEs focuses on building connection such as with
investors, public and employees as well as other people that can contribute in growth of firm and
help in targeting market. Entrepreneur has unique style of communication which helps in
convincing people and also they can manipulate anyone which are necessary for changing
business. Founders highly focus on developing communication and networking skills so that they
can expand business in different part of country and make good contact for it.
P6 Aspects of the entrepreneurial personality and entrepreneurial motivation and mind-set
Personality of a person highly impact on business and hence SMEs business owner create
a image that help in convincing other as well as handling market in changing business. They
remain highly motivated for their work and focuses on achieving goals. Inspire others by
leadership style and able to take any risk which help in increase profit share in changing
business. People belong to such group are emphasize on solution rather than problems help in
sustainable development of business and increase profit share (Hubner and Baum, 2018).
Motivations of businessmen related to SMEs are high which attract other towards them for
example: employees easily convinced by them for working hard or over time and hence they able

to generate higher output. Training and development programs organised by leaders of firm to
impact on performance of workers and also develop their skills for changing business. Mind-set
of entrepreneur remains stable and calm for any type of situation and hence best decision are
taken by them timely with quality. Funders of SMEs have visionary mind and also have skills
like creativity and innovation.
Mind Set Entrepreneur
People who start small business have creative and innovative mind which help in gaining
large number of customer by providing product according to changing taste and trend. They have
visionary approach related business which distinguishes them from others. Risk taking is in their
attitude which helps in taking quick decision in changing business.
Entrepreneur and Manger
Entrepreneur have creativity as well as innovative which apply in their professional life
by opening their own business while manager work for firm and influence by leaders ideas.
Former focuses on successfulness and sustainability of business and emphasizes on effectiveness
in work of employees. Profit of start-up is their own and risk also taken by entrepreneur only and
on the other hand manger work on salary bases and risk are taken by leaders in firm for business.
LO4
P7. Founder’s Background and experience can hinder or foster entrepreneurship
There are number reasons which can impact on positively or negatively on company by
owner’s experience ad background. Rise and fall of organisation highly dependent of elements
such as background of family, religion, race, caste etc. for example: person who is living in
England have ideas about taste and trend of society which can help in running business
successful (Ghalwash, Tolba and Ismail, 2017). People who belong to business family have
acumen relating to it which contributes in growth of firm. Individual who grow up in criminal
cannot have less chances of running business properly as he might not familiar with ethics that
needed for running a firm. Government which support for entrepreneur plays important role for
example many countries do not entertain new firms and ideas or can say conservatives in nature.
Person who have studied business will be greater successful in achieving goal as compare to
others. Characteristics traits plays important in fostering business for example person with good
communication skills can easy attract investor for investment in firm while a person with low
leadership quality cannot inspire and hence effect on growth of firm. Economical condition of a

person plays important in achieving target for example person belong to financially strong
company can easily take risk in opening business and increase profit share in changing business
(Werthes, Mauer and Brettel, 2018). There are number of risk that has to be taken by person who
wants to start business and this factor highly influence for example taking decision of adoption
new technology require amount and person with guts can take loans and able to take risk for it.
Opening new business help in reaching to people and increase profit share as well as create
inspiration image in front of others.
Issa’s brother
Zuber and MohsinIssa both of them started business by buying a petrol pump in and later
on expanded in different part of country. Both comes from middle class family but well educated
in business with innovative and creative mindset. Later on brothers purchases Asda from
wallmart and combine both businesses which gear up their profit in changing business. In
different occasion they found shy in interacting and down to earth and knows the value of people
that work for them and buy their product. Tesla’s co-founder Elon Musk also started Zip2 which
focused on software with his brother. Musk with visionary mindset able to provide product as
well as services that emphasizes on sustainable development such as electric vehicles and hence
contributes in conserving environment.
CONCLUSION
It can be understand from the opening SMEs require sets of attributes as well as growth
of it depend on various types of factors such as leadership quality of founder. Entrepreneurship
and Small Business Management will help scholars in futures endeavours when they are starting
their own business. Report explains different types of ventures that consider into entrepreneurial
for example opening of eco-friendly tours. SMEs increase employments in country as well as
decrease financial gap between citizens of country. Entrepreneur have leadership and other types
of characteristics’ which help in attracting stakeholders and are visionary mind which increase
creativity and innovation at workplace. Persona family and other types of background impact on
failure and success of business.