Entrepreneurship and Small Business Management: An In-depth Study

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Entrepreneurship and Small Business Management
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Table of contents
Introduction:....................................................................................................................................3
P1: What is entrepreneurship and entrepreneur, the types of entrepreneurial ventures and how
they relate in the typology of entrepreneurship...............................................................................4
-P2 What are the differences and similarities between the entrepreneurial ventures?....................7
Difference between the ‘three main entrepreneurial ventures.........................................................7
Similarities of entrepreneurial ventures...........................................................................................7
M1: The understanding of entrepreneurship in both public and corporate sector...........................8
LO 2:................................................................................................................................................9
P3 The data that illustrate on how the micro and small business impacts on economy..................9
P4: The Importance of startup and small business in to growth of social economy.....................10
M2 Differences of Small, Medium and Large-scale business that make to the economy.............10
LO3................................................................................................................................................11
P5 The characteristics and skills of successful entrepreneurs that differentials them with other
business..........................................................................................................................................11
P6: The entrepreneurial mindset and motivation that reflects their entrepreneurial......................13
M3: The different qualities of successful entrepreneurial.............................................................14
LO4................................................................................................................................................15
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P7 The mindset of and experience of entrepreneurs that hinders or foster entrepreneurship........15
M4 The links between the entrepreneurial characteristics and influences of their personal
background....................................................................................................................................15
Conclusion.....................................................................................................................................17
Reference:......................................................................................................................................18
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Introduction:
In the assignment we are going to discuss the various set P’s and M’s that collectively effects the
business organizations and its working style and how does an entrepreneur influence it with its
work ethics. The analyses and studied is done to learn the outcomes on how a successful
entrepreneur carry down their organization by maintain its performance and success rates.
The major discussion will be emphasized on the entrepreneurial ventures, typology of
entrepreneurship, characteristics of successful entrepreneur and the similarities of entrepreneurial
ventures. In order to understand, how the entrepreneur ventures take place and what role the
entrepreneur plays in building an organization and to take it in a successful growth the study and
analyses of it will be overseen in the assignment. With this, what quality does a successful
entrepreneur holds in building a successful organization will also be discussed in the end of the
assignment.
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LO1:
P1: What is entrepreneurship and entrepreneur, the types of entrepreneurial ventures and
how they relate in the typology of entrepreneurship?
Entrepreneurship has a number of meanings with it; the simplest meaning of entrepreneurship is
that it is an act of creating business that can be scaled above to generate profit. However,
entrepreneurships meaning and entrepreneurs meaning goes hand in hand, where Entrepreneur
simply means by a person who is willing to start a business in order to make additional money
and profits. An entrepreneur can also carry an additional connotation of bringing new innovation
with its products and services (Kirzneret al. 2015).
Typology of entrepreneurships- The individual entrepreneurships
In field of entrepreneurship, the term ‘typology’ is used to describe the classifications of business
one can consider to choose. While, choosing a right typology helps to understand the dynamics
of the industry and hence helps to process the learning one may need. There are three types of
typology in entrepreneurship that is: Individual entrepreneurships, corporate entrepreneurships
and Public sector entrepreneurship. Let’s discuss the most important typology of
entrepreneurship that most of the small business follows to improve their performance,
efficiency and effectiveness in the type of organization they work (Dees et al. 2017).
The individual entrepreneurship is known to be the heart of entrepreneurship that involves an
entrepreneur’s hard work and innovative creation n their product that also involves a significant
risk. In this typology of entrepreneurships, a business can inherit various kinds of changes to
expose them in high growth market. The individual entrepreneurship is known to be one of the
safest typologies that can be considered to have a long-term presence in the market.
The different types of entrepreneurial Ventures
The business market has its own set of rules and structure which an entrepreneur has to follow to
set the business. Below are some of the main types of entrepreneurial venture in which a
business can set into according to the type of operation and size of business.
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Start-up entrepreneurial venture
A startup business is a primary stage to conduct a business operation. A startup company is
totally based on offering services and products that can fulfill the demand of local consumers.
The examples of start-up entrepreneurial venture are: consultants, travel agents, electricians,
plumber, and storefronts etc.
Franchise entrepreneurial venture
A franchise entrepreneurial venture is owned by a group or by an individual entrepreneur. The
head business is typically owned by a corporation and further is distributed to entrepreneurs by
offering them their brand, service and products in return of profits or commissions on sales.
Examples of franchise entrepreneurial venture are: McDonalds, Pizza hut, Marks and Spencer
etc(Kuratkoet al. 2016).
Joint venture
The joint ventures involves of summing two people or groups that shares ownership, risks and
governance of a business. The examples of joint venture are: Event & Conferences, API’s, Parcel
AD’s and affiliates.
Public private partnership
The public private partnership can be defined as having collaboration with the government
agency or with the private company. The public private ownership is considered to build,
finance, and operate the public networks. The examples of public private ownership are: Indian
Oil, Parks, convention centers (Burns et al. 2016).
Entrepreneurship is known to be an innovative process which involves the multi-faceted
activities that provides new thing for the customers. The orientation of a business makes it
different for other whether it is based as a startup, public venture or a joint venture. Although, the
relationship between the types of entrepreneurship ventures which we have discussed above and
the typology of entrepreneurship goes hand in hand (Storeyet al. 2016).
The relationship of private, public and individual entrepreneurship is classified below:
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 Public entrepreneurship
The public entrepreneurship is undertaken by the government which is further conducted by
the various development companies as a form of public entrepreneurship. All kinds of
countries, which are underdeveloped or developed, can take the public initiate to fulfill their
initial deficiency of being a private entrepreneur.
 Individual entrepreneurship
The individual entrepreneur can be undertaken by a family or by an individual with a
personal interest or initiative to start up its own individual entrepreneurship.
 Private entrepreneurship
The entrepreneurship which is initiated under the private sector that is supported by the
government services for public concerns is known as the private entrepreneurship. This type
of entrepreneurship is initiated to make economic developed in balanced and in a speedy way
(Etzkowitzet al. 2017).
The life cycle of entrepreneur starts from the moment when an entrepreneur decides to bring an
idea to start off a business. In simple terms, a business has different set of stages, that an
entrepreneur must be aware to change their operations accordingly.
Stage 1- Development
A business cannot be set without a source of an idea or development of ideas. The very first
stage comes in a business cycle itself is Development. The development stage is also called from
the name of processing ideas or a soul search phase of business operations (Zahra et al. 2017).
Stage 2- Startup
After the development stage has been canvassed to set a business the entrepreneur starts up by
building a plan on choosing a location and further resources to launch the business in the market.
Stage 3: Establishment
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Once, the business is set and has picked up a pace of generating income and profits, the stage is
known as from the term of establishment. Eventually, after the development and startup the
business starts to recover its profits in slow and steady process.
Stage 4: Expansion
In the stage of expansion, the business starts to earn a rapid growth in both forming revenue and
cash flow from the business. In the meantime, the entrepreneur can think about expanding its
business in different areas and by entering into different geographic of the industry.
Stage 5: Maturity Stage
At this stage, many business operators look out to move ahead of their minimum sales. The
movement of business can also depend on the size on business and the demand of it. The stage
can be a new journey and can be a dead end for a business as it involves risks.
In the above discussion we have seen that entrepreneurships have different types of meaning and
ventures that a business can choose according to its business operations. Eventually, a business
can be formed once a right typology of entrepreneurship has been chosen and a right strategic
development has been made by the entrepreneur (Burns et al. 2016).
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P2 What are the differences and similarities between the entrepreneurial ventures?
Difference between the ‘three main entrepreneurial ventures
Even if a different type of business follows the same structure and operations within its unit, it
does not mean that they are same and has the same working environment. However, there are
three main entrepreneurial ventures a business can carry that is: Lifestyle venture, small profit
venture and High growth venture, the differences of these three are stated below.
Topic Lifestyle venture Small Profit
venture
High Growth
venture
Type This venture
provides an
entrepreneur its
independence,
autonomy and
control on
business
operations.
The small profit
venture involves
under the
structure of
limited operation
and cannot be
framed into a
large business.
The high Growth
venture is
flexible and can
be moved
beyond the
business
operations. There
is no limited
working
structure.
Profit The venture
aligns the
entrepreneur’s
interests and
hobbies in form
of business as
well as to make
profits.
It does not focus
In earning a
major amount of
profit.
Additionally, a
decent amount of
profit is enough.
The venture
focuses to push
itself into large
operations to
make profit.
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Aim The venture aims
to build business
on person
interest.
To make a
moderate earning
and a decent
living.
To build a brand
or reputable
organization that
aims in making
big innovations
and profit.
Strategy The venture does
not have any
specific strategy
as it runs on the
entrepreneur’s
passion.
The venture does
not have any
specific plans it
works according
to the demand
and supply.
It has strategic
plans according
to the business
conditions to
grow the
business.
Similarities of entrepreneurial ventures
The above we have discussed don the differences of the three entrepreneur ventures which do not
seem to be quite wide enough. Through, even out of the differences the three entrepreneur
ventures have the same similarities in the business.
 Building new ideas: As every business tries to Succeed in their business by summing
with innovative ideas and designs for their customers demand and preference. The basic
similarity of the three entrepreneurial ventures is that they both work under to influence
their business with new ideas and innovations in their service and products.
 Risks: Every business has to go through a phase where they have to take decisions that
involve risks. The major similarity of the three entrepreneurial venture is that they have
potential risks in their business that may differ according to their operations (da Costa et
al. 2018).
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In simple terms, entrepreneurship are the people who are highly motivated to work for an
organization so that they can give a positive outcome to improve their service and product. An
entrepreneur focuses to drive innovative strategies into the organization to provide better solution
on goods and services to the consumer (Curran et al. 2017).
The social entrepreneurship is a technique in which organizations contributes and funds to the
environmental, social and cultural issues. The concept of contribution in social environmental
can differ for the beliefs, aims and sizes of the business and it can be a non- profitable or
profitable organization.
To stand a stable business to extend its growth an entrepreneurial venire must be considered
according to the business type, its size and operations. Also, as we have seen the different type of
entrepreneurial ventures and its types, differences and similarities it is concluded that each of
them works in different set structure and a business must consider accordingly to their operations
and aims (SINGH et al. 2017).
M1: The understanding of entrepreneurship in both public and corporate sector
There are diverse range of entrepreneurial ventures and types that depends on the purpose of a
business, and the investments done on the business and also how the venture is running. If the
entrepreneur ventures are divided into the basis of corporate and public sector, it can be
concluded that they both run on the social entrepreneurship and business entrepreneurship. Both
of these are divided in producing services and products that can be sold out in the market to gain
profit.
Both of these kinds of entrepreneur ventures are focuses to expand and to reach out to maximum
people so that the aims, motives and objectives can be fulfilled.
LO 2:
P3 The data that illustrate on how the micro and small business impacts on economy
In an economy, the medium scale and small-scale business plays a very crucial role to develop
the economy. Eventually, these scales of business run with the scale of 250 employees, also it is
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the business provides a huge number of employment opportunities for skilled labors and also for
the women. Although, the capital formation of small scale and medium scale business is quite
low but the source of income it provides is good. These scales of business have a major
contribution in providing a base to economy as it eliminates the poverty line and helps to
improve the employment rate. Thus, the small scale and medium scale business has given a huge
contribution in providing jobs (Kar et al. 2018).
According to the reports, around 16.5 million people in UK get employed by the SME that
eventually covers the 60% of private sector growth rate. A brief analysis has also been made
over the SME that in UK around $2.5 trillion turnover has been seen all due to the small-scale
business. Approximately, it is 55% of turnover made in the private sectors of UK.
According to the analyses, around 98% of business sector in UK is covered with small scale
business. The business that gives a major contribution on SME is plumbers, beauty, travel
agents, consultants, electricians and much more.
Under the analysis, it is also estimated than around 600 million jobs will be provided to the
citizens in comes 15 years. Out of which SME, will provide half of the jobs in UK according to
the growth of the sector (Sutalaksanaet al. 2016).
Impact of large sized business on economy: The survey states that, it is estimated that business
which is managed under the large-scale size contributes itself more in the economic growth of
the country. It is all due to the fact that it has a huge market that provides high wages and
benefits if compared to other size of business. The success of large sizes business is also visible
as they make international profits as well.
Impact of SME on international and local economy of London: The SME has a huge
contribution on the economy of London, as it contributes to 99% of private business, and 50% of
employment opportunities which makes around 48% of turnover in the business. Well, the
business might not bring a big change in the economy as they lack in investments and capital. If
government tries to get their support to the SME then a better income could be generated from it
(Rainnieet al. 2016).
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