Entrepreneurship and Small Business Management Report

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION............................................................................................................................. 3
LO1.................................................................................................................................................4
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship....................................................................................................4
P2: Explore the similarities and differences between entrepreneurial ventures.......................6
LO2.................................................................................................................................................8
P3: Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy...........................................................................................8
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy........................................................................................................................ 11
LO3............................................................................................................................................... 13
P5: Determine the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers..................................................................13
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset............................................................................................................................. 16
L04............................................................................................................................................... 18
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.....................................................................................................................18
CONCLUSION............................................................................................................................... 20
REFERENCES.................................................................................................................................21

INTRODUCTION
Entrepreneurship refers to a person working for himself with the aim of giving the best.
Entrepreneurship is the process of starting a new business in order to make profits. An
entrepreneur is a person who starts its own enterprise and embraces every challenge for its
operations and creation. Entrepreneurship ventures have different structures for ownership
and control. The report will focus on different entrepreneurial ventures and their effects on the
economy (Aparicio, et al. 2016).
In addition to this, the report will also include in-depth information for the skills set required for
starting a business. The new growing business opportunities have encouraged
entrepreneurship on a large scale. The scope for opening a new business is readily increasing
and growing. It will also contain information on how entrepreneurial mindsets are affected by
the personality of an individual (Stoian and Gilman, 2017). This report will also include the
importance of small business and startup in the growth of the social economy. This will also
study and analyze the statistical data of small and medium enterprises and their impacts on the
UK economy. It will also include the impacts of Elizabeth Holmes and Zac Williams experience
and background on the startup process (Kozubíková, et al. 2017).

LO1
P1: Examine different types of entrepreneurial ventures and explain how they relate
to the typology of entrepreneurship.
Entrepreneurship is a driving force that promotes development and growth as well as
restructures economic resources. Entrepreneurs focus on changing the living standards of
people positively. They also improve the condition of people for prosperous society. They also
contribute to the nation income by contributing to higher earnings. Government also plays an
important role in nurturing entrepreneurship in the country (Stoian and Gilman, 2017).
Entrepreneurs also invest in community projects thereby providing financial support of local
communities. Entrepreneurship is a dynamic process of implementing creative things through
continues innovation. Entrepreneurship also integrates political and political outsides for
developing advanced society (Afrifa and Padachi, 2016). Research and development is largely
promoted with the help of successful entrepreneurs. Entrepreneur venture aims at creation
substantial wealth over time that is different from a normal business. They have more risk and
high returns. They produce economic and social value with the help of innovative strategies and
products. These ventures are product driven and opportunity driven. They are highly co-related
with entrepreneurial characteristics (Block, 2016).
The different types of entrepreneurship venture are as follows
Small business entrepreneurship
In present days the small business is gaining a lot of importance and familiarity. A large number
of people in the UK are still involved and surviving because of small business. The numbers of
employees are generally less and this type of business is run by owners (Aparicio, et al. 2016).
The organization focuses on increasing the customer base and revenues. They have
unstructured goals and objectives (Stoian and Gilman, 2017). The type of business can be easily
run with friends and family members. The small business entrepreneurship is more focused on
developing products and services to meet customer requirements. Instead of funding through

venture capitalist they focus on bringing money from friends, family or bank. running a small
business provides a sense of accomplishments, happiness, and satisfaction (Stoian and Gilman,
2017).
Scalable startup entrepreneurship
This type of business focuses on innovation, creativity, and sustainability. They are being
started with the aim of earning growth and profit. They look for big investments and funding.
They share their new ideas as per the changing environment. They are based on a scalable
business model for their growth. They always attract investments and funds from a venture
capitalist (Africa and Padachi, 2016).
Social entrepreneurship
It is a process of doing business for a social cause. Social entrepreneurs generally spend money
on something they need. They focus on creating products that solve social problems or issues.
Social entrepreneurship is categorized into three parts, they may be non-profit, for-profit or
hybrid depending upon the product type (Devos, et al. 2016). The social entrepreneurs have
certain characteristics
 Innovative problem-solving skills
 Change the world socially and economically while earning money.
 Focus on feedback to refine and adapt
Large company entrepreneurship
This type of entrepreneurship focuses on longevity and the sustainability of business and firm.
They have a large number of employees and staff who work under a complex organization
structure (Devos, et al. 2016). They generate new products and services will disruptive
innovation. They run a large number of business operations daily with the aim of earning a
profit. They have finite life cycles. Sometimes large company size and culture make the
execution process disruptive and difficult (Barringer, 2015). They are basically target driven
organization who only works for revenue and profits. The aim of creating a high-quality product
by targeting a new group of customers and also a market at a new place (Block, 2016)

P2: Explore the similarities and differences between entrepreneurial ventures.
Factors Small business
entrepreneurship
Scalable business
entrepreneurship
Social
entrepreneurship
Large company
entrepreneurship
Number of
employees
They have a low
number of
employees and
people (not more
than 50) This
type of business
operates at a low
level.
The employee’s
ratio is
dependents on
size and
structure.
Unlike scalable
business, the
number of
employees
depends upon
the size and
organization
Employees are generally
more than 1000
Organizational
structure
In the proper
structure of
organizational
and often run
with a sole
proprietorship.
Based on
cooperation and
partnership is
limited (Bujor
and Avasilcai,
2016).
Mainly run for a
public cause. This
type of business
has a trustee
based
organizational
structure.
The organization structure
is big and complicated
(Barringer, 2015).
Objectives Generally Low
profit and
growth
To achieve high
profitability and
growth
To help people
by developing a
quality product.
They try to make
the world a great
place.
Introduction of innovative
and standard products
with the help of different
marketing strategies
(Burns, 2016).
Risks Low risk but high
competition from
the same
High risk and
focus on high
return with
Risk is medium
as compared to
big organizations
This type of business has a
good brand name. it helps
them is maintaining

business type
(Coleman,
2016).
increased profits. as they are being
supported by the
government.
medium risk and high
return.

LO2
P3: Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy
In every nation small and micro business plays an important role in making the country
developed and stable. The profit in a small and micro business is growing day by day bringing in
more employment opportunities (Stoian and Gilman, 2017). The establishment of SME is
considered a major element of the nation today. SME offers many advantages and being a
source of success for several nations. They are boosting the country economy by generating
extra income and revenues. it also helps in increasing the GDP of the country (Devos, et al.
2016).
Share of business in the UK
(Source: Kirzner, 2015)

Small business and startup positively contribute to the growth of the economy. In the UK alone
small business accounts for 99.3% which is higher than medium and small business. Small
enterprises have a huge impact on the overall economy of the UK. The small business provides
48% of employment opportunities and has 33% of turnover. The scope of small business is
much higher as compared with the other large scale or small scale business.
Number of the people employed in the UK
(Source: Kozubíková, et al. 2017)
According to the statistics, it is clear that the person employed in small and medium enterprises
has gone up drastically from 2008 to 2019. It is, therefore, creating more jobs in the nation and
increasing the opportunities for more employment. As compared with the other nations the
United Kingdom is on the rising. The number of small business is comparatively very high and
directly impacts the economy as a whole.

Business type of small and micro business in the UK
(Source: Kuratko, 2016)
The small and medium enterprises are divided and innovator, non-innovator, exporter and non-
exporter. They contribute to increasing the revenues of countries and nations. They have a
direct impact on the overall performance of the UK economy. They also export various products
and therefore help the country in maximizing return and profits ((Barringer, 2015).

P4: Explain the importance of small businesses and business start-ups to the growth
of the social economy.
The role of a start-up in economic prosperity is enhancing year by year. Small business
contributes to the growth of the social and overall economy. It brings opportunities for
development. Now a day’s people go for startups in order to have their independent business.
Both small and startup business responds flexibly to problems and solutions. They create a
positive impact on the overall growth of the economy. The startups come with new ideas for
meeting individual wants (Afrifa and Padachi, 2016). They create employment opportunities in
the economy by hiring individuals how are not being hired by any big company. They create
more jobs that are ultimately helping the economy. They help in increasing GDP by focusing on
living standards and success. The startup is accelerating the growth of the social economy
through innovation and creativity. Startup undergoes people with high potential who represent
precious human resources for every nation’s economy (Stoian and Gilman, 2017).
Entrepreneurship thus plays the role of driving force within the economy. The starting or
creating of innovative business brings economic prosperity. Small business and startup thus
boosted the economy with the latest technologies and created new ventures over time. The
startup is introducing customized products and services as per the changing needs and
demands. So startup and small businesses directly impact economic diversity and pace. They
are playing a very major role in making the country sustainability developed (Kirzner, 2015). In
today's world, they are represented as key to success. Benefits of a startup are listed below:
 Development of relationships with employees, customers, and suppliers
 They focus on catering to niche and a limited segment of people which helps them in
reducing the cost of their overhead.
 They believe in innovation and inventiveness for problem-solving. It helps in coming up
with accurate and reliable solutions.
 Startups and small businesses help the country in reducing unemployment which leads
to increased productivity.
 The startup is creating wealth within the economy by optimum utilization of available
resources (Storey, 2016).

 Startup emphasizes team culture and versatility among the organization.
The startup also provides environmental and technological benefits to the economy. They
revised their models, methods, and processes In accordance with the economic fluctuations
and economy.