ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT - Report Analysis

This report delves into the multifaceted world of entrepreneurship and small business management, focusing on various types of entrepreneurial ventures within the context of Redbridge Council. It examines four main types: small business entrepreneurship, scalable start-up entrepreneurship, large company entrepreneurship, and social entrepreneurship, highlighting their distinct characteristics, goals, and structures. The report explores the similarities and differences between these ventures, emphasizing the impact of small and micro businesses on society, their importance to the economy, and the growth of the social economy. A comparative analysis between medium and large businesses is also provided. The report further discusses the characteristic traits, skills, and motivational drivers of successful entrepreneurs, as well as the influence of their backgrounds and experiences. Through this analysis, the report provides a comprehensive understanding of the entrepreneurial landscape and the dynamics of small business management.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Various kinds of entrepreneurial ventures...................................................................................1
Similarities and differences between entrepreneurial ventures...................................................3
Small and micro business impact on society...............................................................................4
Importance of small businesses to economy and the growth of the social economy..................4
Comparison between medium and large businesses....................................................................5
TASK 2............................................................................................................................................6
Characteristic traits, skills and motivational drivers of successful entrepreneurs.......................6
Background and experience successful entrepreneurs and their influence on entrepreneurs both
positively and negatively.............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship can be defined as willingness or capacity of developing, running and
organizing a business. It is an activity which helps the entrepreneurs in setting up a business
successfully by taking various kinds of financial risks in the hope of profit (Cooper, 2017).
Entrepreneurs are those individuals who create and run business whether at small scale or at
large scale. All entrepreneurs need a proper business management process which helps them in
running a successful business, manage their financial data or information, employees, take any
kind of successful decision and many more. In other words it helps in automating and optimizing
all business processes using various models, methods, measurements etc. This assignment will
lay emphasis on different kinds of entrepreneurial ventures in Redbridge Council, Similarities
and differences between them, impact of small and micro business on society, importance of
small businesses to economy and the growth of the social economy and comparison between
medium and large businesses.
TASK 1
Various kinds of entrepreneurial ventures
In order to run a successful business entrepreneurs take huge number of risks, invest large
amount of money, take various kinds of security measures irrelevant of the size of the business
i.e. business run by entrepreneurs can either be a small or a large scale business (Lipset, 2018).
Redbridge Council also has various kinds of entrepreneurial ventures both private and public.
Each of these ventures has their own topologies associated with them. There are various kinds of
topologies that helps in understanding relationship nature between type and subject. There are
various kinds of topologies of entrepreneurship for different types of entrepreneurship for
example: lifestyle entrepreneurship, serial entrepreneurship, female entrepreneurship and many
more. Based on these topologies four main types of entrepreneurial ventures have been defined.
These ventures have been explained below:
Small Business Entrepreneurship: This type of businesses are mostly run by entrepreneurs
who have the least number of employees working with them. Such type of businesses generate
less revenue and due to this their overall profit margin is also less. The main goal of such
business is to mainly focus on providing products and services to the customers by bringing
continuous changes within their services as well as products so that they can increase their
customer base. Owners of such businesses are either family members or friends. It can be related
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to female entrepreneurship topology because today most of the female are choosing to start their
own business and preferred to be self employed (Cooper and Folta, 2017). It has also been
observed that many of the small businesses are run by women only. Such type of
entrepreneurship comes within private entrepreneurial ventures. For example: restaurant chains
etc.
Scalable start-up entrepreneurship: This type of business are mostly run by entrepreneurs who
want to start a business with an innovative idea and provide innovative services and products to
their customers. Entrepreneurs who run such type of businesses always focus on changing the
world by implementing their ideas. They mainly focus on successfully running their business
with innovative idea by making a successful business model so that it can be implemented
successfully within the enterprise and try to bring financial investment for their business from
various kinds of capital investors. It is important for such type of entrepreneurs to focus on their
business model and capital investment if they want their business growth in the market.
Topology used by this entrepreneurship is serial entrepreneurship as such type of business
owners mainly focus on implementing an innovative idea of their own in order to run or start
their own business (Nambisan, 2017).
Large Company entrepreneurship: Owner of this type of business mainly focus on sustainably
running their own business. Only after achieving sustainability they focus on expanding their
business. For this they continuously need to focus on improving and introducing new products
and services in the market by understand the changing trend and changing demands and need of
their customers. Other than this they also need to focus on their competitors, their offerings and
then bring changes among their products and services, this helps then to gain competitive
advantage, survive and remain on the top of the market. Most of the entrepreneurs who run large
companies are the one's who implement innovative ideas and bring changes within the society.
Due to this reason it can be related to serial entrepreneurship topology as they are the ones who
mostly think of innovative ideas and focus on changing market trends with their innovative
ideas. It has also been observed that most of the serial entrepreneurs' comes under private
entrepreneurship ventures for example: Facebook, Google.
Social Entrepreneurship: Owner of this type of business mainly focus on soling any kind of
social issue and based on this they introduce and deliver products or services to their customers
which eventually helps them to contribute positively in a society and create better world (Hitt
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and Duane Ireland, 2017). These types of entrepreneurs do not focus on making profit in fact
they focus on delivering good quality service and products to the society. But, however it is not a
compulsion that such type of business owners can only run a non profitable organization in fact it
can be a non profitable, profitable or a hybrid organization. This type of businesses can be linked
to lifestyle topology as entrepreneurs that comes under this category mainly focus on improving
persona life of people and do not focus on making profit. This type of organizations can be both
public and private For example: NHS and many more.
If an entrepreneur wants to start their own business then Redbridge Council supports
them and they have their own set of rules and regulations which helps them to grow and build
their business.
Similarities and differences between entrepreneurial ventures
There are many similarities and differences between entrepreneurial ventures such as:
Similarities:
 One of the main similarity between these entrepreneur ventures is that based on the size
of the company, employees working within a company varies. It can be a large
organization or a small or a medium sized business (Light, Bhachu and Karageorgis,
2017).
 Another similarities between these entrepreneurial ventures is that all of them need to
think of innovative ideas or bring continuous improvement within them in order to
survive in the market's current competition.
Differences:
The main difference between various kinds of entrepreneurial ventures are based on their
goals, number of employees and overall structure
Small business Scalable start-up Large companies Social companies
Goal Main goal of such
type of
organizations is
growth and
development of
their business with
profit.
Main goal of such
type of businesses
is to bring
innovation within
their company and
increase the overall
profitability of the
Main goal of such
type of business is
to sustain within
the market by
bring continuous
improvement
within their
Main goal of such
type of business is to
provide good quality
of products and
services.
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organization. services and
products.
Structure Such kind of
business do not
have their own
defined structure
but most precisely
there are sole
proprietors in
Redbridge
Council.
They can have both
the type of
structures i.e.
either corporate or
partnership
structure (Read and
et.al., 2016).
Such type of
business structure
is not fixed and it
is defined upon the
basis of type and
size of the
company.
Most of the
organizations within
this category comes
under non profitable
organization so,
most of them are
trustee based
companies.
Employees Maximum
employees: 50
Number of
employees working
in Scalable
business varies
based on their size
1000 or more than
that.
Number of
employees working
in social company
varies based on their
size
Small and micro business impact on society
Small and micro business have a large impact on the society in variety of ways. Social
growth and economy of a country is impacted in variety of ways especially by small and medium
sized enterprises (Etzkowitz and Zhou, 2017). They impact society and growth of a country in
variety of ways. They also help in increasing demand for innovative products within the society
and based on these societies demands and needs also changes continuously. Most importantly
they help in increasing employment rate of the country and SME's provide jobs and salaries to
people. However it is much lower than large enterprises but still they do contribute in the overall
development of a country.
Importance of small businesses to economy and the growth of the social economy
Today number of small, medium and large organizations are increasing continuously. It is
quite important as they all together help in contributing in countries overall economy. In order to
service within the market they are focusing on satisfying customers needs and requirements by
bringing changes and improvements within their organization. From a survey conducted by
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previous researchers based upon Borough Council of London, it has been analysed that number
of small and medium sized businesses are much higher as compared to large business but the
employment percentage of large businesses is much higher as compared to small and medium
business (Parker, 2018).
Business in
1000's
employment in
1000's
Turnover in
billion
Businesses % Employment
%
Small 5416 8800 808 96 40
Medium 210 4080 595 3.9 10
Large 8 10,743 1868 0.1 50
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From the above graph of Borough Council of London, it can be analysed that the number
of small and medium business is much more in number as compared to large business. If overall
business percentage is seen than small and large businesses are much more in number as
compared to larger organizations. But even then employment percentage of large business is
much higher as compared to both of them. So from the above graph it can be concluded that both
small and medium sized organizations play a vital role in a countries' economy as well as in
employment.
Comparison between medium and large businesses
There are many differences between small, medium and large organizations. There are
more than 70 percent small business, 29 percent medium sized business and only 1 percent large
business. But contribution of large business in a countries' economy and growth is much more as
compared to small and medium sized business.
Medium business Large businesses
 Profit margin of medium business is
much less as compared to large
business.
 Revenue generation is much lower as
 Profit margin of large business is much
more as compared to small business.
 Revenue generation is much more due
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Small Medium
0
20
40
60
80
100
120
Businesses %
Employment %
Illustration 1: small and medium sized organizations business and employment percentage

compared to large company (Burns and
Dewhurst, 2016).
 Most of the medium companies work in
a single nation and most of the times
they have their presence in their home
nation.
 They spend much mower among on
CSR activities and focus on spending
money on production activities.
 They focus on increasing their
customer base and profit.
to high valued brand name and
products.
 Most of the large companies have their
presence in foreign nations as well.
 They spend much more amount on
organizations operational activities,
their CSR activities as well as on
research and development in order to
produce and sell more innovative and
improved products (Storey, 2016).
 They focus on maintaining their brand
image and quality of their products and
services.
TASK 2
Characteristic traits, skills and motivational drivers of successful entrepreneurs
Explain entrepreneurial characteristic and skills of successful entrepreneurs
Entrepreneurship could be defined to as that activity which put on extra efforts for setting
up business and then taking all sort of financial risk in way of profits and success as well. This is
also termed to as building up of new ideas for business. They are those people who have new
innovative idea and funds with them which they further use for setting up their own business so
they are known to as entrepreneurs. So there are many type of different skills and characteristic
which all of the entrepreneurs will be having with them like that of Alan Sugar, Richard Branson
and Peter Jones.
Characteristic-
Establishing new venture-
This is one of the most important task for any businessman which means that they are
satisfying the need of customers by creating or opening new venture. For this it is essential that
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they are creating something which is creative and innovative as well. Like Alan Sugar, Richard
Branson and Peter Jones established their ventures into market which helped them to grow.
Risk assumption-
For any entrepreneur like that of Richard Branson who is also regarded to as risk taker in
the airlines' industry also knows how to manage these risk which is identified by them. It is
essential that they are lowering down these risk like that of social, financial and career risk as
well.
Self-confident-
This is one of the most important characteristic which define any entrepreneur like Peter
Jones is very much self-confident within himself which make him easily to take decisions and
challenges as well.
Skills
Hard working and committed
Each and every entrepreneur should be hard working which will help them to easily
tackle the problems so they should be committed towards their work as well. Alan Sugar for
instance is having very deep and proper sense for working properly and to be innovative in all
terms so that he could be achieving all of their goals.
Profits potentials-
This will be ability of entrepreneur to make innovative ideas and they easily take up
challenges for creating something new and proper. Peter Jones will be having ability to build up
profits and generating return so that they could be able to measure expected rate of return as
well.
Networking skills-
This is also among important skills which enable the entrepreneur to develop their basic
network with investors and employees as well. Richard Branson is having strong network with
his investors who could be able to build up better relationship with them for longer duration of
time.
Traits
Self-motivated-
Been motivated by inner force which will be helping them to face difficult challenges.
Self motivation is increase the level of challenges which means entrepreneur take the difficult
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challenges to expand their business. The self-confident is the essential traits which help to
expand the business it will lead the organization toward the growth. Thus, by the help of self-
motivation Richard Branson expand their future to attain success.
Background and experience successful entrepreneurs and their influence on entrepreneurs both
positively and negatively
An entrepreneur need to face lots of difficulties within their journey to start a new
business. Their experience and background influences their entrepreneurship drastically in both
positive and negative manner. There are various factors that affects entrepreneurs such as their
unemployment, poverty their family background and many others.
Positive influence of their background and experience is: Education or job experience
helps them to develop skills and traits requited to start a new business. It also helps them to bring
innovation within their business and generate revenue.
Negative influence of their background and experience is: Poor education background
becomes a hindrance for them and their carrier. This poor educational background makes it
difficult for them to create a positive organizational culture. But sometimes other factors such as
relationship building skills, communication skills plays a vital role in making their dreams
successful.
Richard Branson
Richard Branson is one of the most famous British entrepreneur who founded Virgin
Group. He was from a good educated family where his father was a barrister. He is a school drop
out who always wanted to start one's own business. He started his journey as a flight attendant.
He had a really hard time in studying and struggled with dyslexia. He struggled a lot in studying
and finally dropped out from school at the age of 16. Initially he started his own mail order
record business and afterwards opened his own chain of record stores. His family background,
desire to become and entrepreneur and start ones own business encouraged him to start ones own
business.
Alan Sugar
Alan Sugar is also one of the biggest British entrepreneur who started his own consumer
electronic company Amstrad. He was born in East London within a Jewish family. He belonged
to a middle class family where his father used to work as a tailor in a garment industry. He was
quite constructive since childhood like he build himself a new bicycle as they couldn't afford
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one. It was quite evident since childhood that one day he would become a successful
entrepreneur. He started working at a greengrocer store at the age of 12 and by the time he
passed his high school his earning was higher than this father. Sooner he started his own
company. His constructive mind and dedication to do something was one of the main factor that
influenced him to become of the most successful business man
Peter Jones
Peter Jones is also a British entrepreneur who was always interested in media, mobiles,
television, property, retail etc. He was born in a middle class family who had only two passions
i.e. tennis and business and earned money from his two passion, got married and owned his own
house till the age of 21. His first business where hi sold computers was a failure and had to suffer
loss. His passion toward business and experience that he hot from his first business helped him to
create and run his own business and become a successful business.
CONCLUSION
From the above assignment it has been summarized that there are various kinds of
entrepreneurial ventures. Each entrepreneurial venture has their own type of topology associated
with it. Each type of venture is run buy different kinds of entrepreneurs with different types of
aims and objectives. From the above discussion it has been analysed that all the type of business
has a drastic effect on economy, especially small and medium sized business has a drastic effect
on overall economy of a country and not only this they also help in reducing unemployment
within a country. It has been analysed that all the entrepreneurs who are running a successful
business had come from different backgrounds and has variety of experience. This experience,
background, skills, personality and their traits helped them to start their own business and
become a successful entrepreneur.
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