Entrepreneurship and Small Business Management, University Name

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Entrepreneurship and Small Business Management
Student’s ID:
University Name:
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................3
LO1: (P1, P2 and M1).....................................................................................................................3
Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship..........................................................................................................................3
Similarities and differences between entrepreneurial ventures.......................................................5
LO2: (P3, P4 and M2).....................................................................................................................8
Relevant statistics and data how small and micro businesses impact economy..........................8
Differences small, medium and large businesses effect on the economy with statistics...........10
Importance of small businesses and business start-ups to the growth of social economy............11
LO3 (P5, P6 and M3).....................................................................................................................13
Determining the characteristic skills and traits of successful entrepreneurs.............................13
Entrepreneurial character reflect entrepreneurial motivation and outlook................................15
Lines of argument relating to entrepreneurial characteristics....................................................17
LO4: (P7, M4)...............................................................................................................................17
With examples, background experience can foster entrepreneurship........................................17
Entrepreneurial characteristics and the influence of personal background...............................18
Conclusion.....................................................................................................................................19
References......................................................................................................................................21

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Introduction
The assignment has been generated for focusing on the different sections of entrepreneurial
ventures as well as the entrepreneurship typology. In different segments of the assignment, it has
been discussed regarding similarities and contrast among the different sections of ventures of
entrepreneurship and explanation of their relationship with entrepreneurship typology. The
reliable data and information has been interpreted and examined here in order to evaluate the
influence of small and micro business over the social economy. The study has also focused on
the significance of start-up business along with the small business in terms of social and
economical growth. In order to understand the significance of the small business as well as the
entrepreneurial venture in order to develop the overall socio-economic development, the
determination of quality and skills of the potential successful entrepreneurs as well as a business
plan has been discussed in the study. It has been understood that the perspectives of
entrepreneurial personalities can affect the enthusiasm and approach of the entrepreneur and it
has been examined in the study with proper presentation and examples. The background
experience of the entrepreneur can affect his success of being a successful entrepreneur and it
has been prepared with proper example.
LO1: (P1, P2 and M1)
Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship
In this present study, the different types of entrepreneurship ventures and their association to the
entrepreneurship typology have been discussed. It has been seen that a number of entrepreneurial
ventures like start-up, acquisition, public and private partnership, franchise and joint venture can
be found in the different directorial ventures. According to the typologies, these ventures can be
divided into three sections such as individual entrepreneurship, corporate Entrepreneurship, and
public sector organisation. Their relations have been discussed here.
Definitions of entrepreneurship and entrepreneurs: The idea of entrepreneurship directs to
the willingness and ability of individual to increase new venture of business in order to earn

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profit and organising tasks in order to mitigate the existing and potential risks related to the
business venture. From the economic perspective of the term, it can be defined that, the
entrepreneurship is a combination of land, natural resources, labour and capital (Agnese et al.
2018). In order to obtain success in competitive global marketplace, the entrepreneurs are
required to take risks and provide innovations to their services or products that their offering to
their customers.
Typology of entrepreneurial venture: In order to discuss the typology of entrepreneurial
venture, the individual entrepreneurship can be identified. The individual entrepreneurship can
be referred to as an independent activity of the individual having the aim to obtain net income
based on the property of them and carried out on the behalf of them (Cowling et al. 2016). Risks
and responsibilities of the individuals are included in it. The individual entrepreneurship can be
carried out in the form of personal and joint entrepreneurship.
Different entrepreneurship ventures: The entrepreneur who tries to develop his
entrepreneurship venture single-handedly and takes the risks can carry out the individual
entrepreneurship and responsibility is associated with the entrepreneurial venture (Burns, 2016).
On the contrary, the joint venture of entrepreneurship can be referred to as the venture where two
or more partners then pull out their resources as well as expertise to achieve their business goals.
The development of the organization has been developed in order to manage the developmental
ventures. Start-up entrepreneurship focuses on the initiative stages of entrepreneurship. Small-
scale operation initially controlled and bankrolled by the entrepreneurial founders, as they
believe that the products of the services have a demand in the market and initially the demand
will be increased (Dees, 2017). The start-up Entrepreneurship can be classified as the individual
entrepreneurship along with the public sector entrepreneurship.
The acquisition can be another entrepreneurial venture where the business can be developed by
the process of acquiring a company. Here the strength and weaknesses of the acquiring company
has been connected with that of the company, which is acquiring it. Increasing market share and
gaining access for new and promising technology can be developed through the acquisition
process, and this shows some risks may be associated with it (Kuratko, 2016). Acquisition
entrepreneurship venture therefore can be classified as the corporate entrepreneurship where the
companies are considered as important, not the individual.

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The franchise entrepreneurship refers to the process where the franchise pays an initial fee and
instead of it he can be able to use the logo and the trademark of the organisation is to whom he is
paying the fee. This entrepreneurship segment is also can be included within the corporate
entrepreneurship ideas.
Public private partnership can be developed as one of the long-term initiatives that have been
used for two or more public and private sectors for mitigating their business needs (Orchard et
al. 2018). These entrepreneurship ventures are the combination of already developed
entrepreneurship or business Ventures. Therefore, they can be classified as the public sector
entrepreneurship within the typology of entrepreneurship.
Therefore, it can be stated that the different typologies of the entrepreneurship ventures are to be
defined as one of the practices where the different ventures can be combined within the single
typology (Rhodes, 2015).
Similarities and differences between entrepreneurial ventures
The different entrepreneurial ventures can be classified according to their similarities and their
differences. In the present study the similarities and differences has been jotted down at the
single place in order to distinguish them properly. In terms of lifestyle ventures model profit
venture and high growth venture, these differences and similarities have been drawn.
Areas Social
entrepreneurship
Small
business:
Scalable start
up
Lifestyle
entrepreneurship
Mode of investment Social
entrepreneurship
needs their potential
investors for market
expansion.
For the small
scale
business, the
development
of the long
term
operations,
the
Start up
business needs
personal capital
or else external
investment for
their ventures
Lifestyle
entrepreneurship
needs no external
investors as the own
capital from the
individual are
adequate for rolling in
the business

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entrepreneurs
set heir
market goals
(Storey,
2016)
Exit strategy Social
entrepreneurship have
their personal strategy
of market exit
In the case of
small
business,
mostly the
non
profitable
business or
big loss
make them to
exit the
market
Start-up
company does
not have any
specific
marketing exit
strategy.
Life style
entrepreneurship does
not have any market
entry strategy as they
run their business
with passion and can
continue with it if the
failure can be evident
(Orchard et al. 2018)
Location Social
entrepreneurship
business can be seen
in the limited location
and one of the major
reason is lack of
proper fund and
investment
Small
business has
developed
mostly in one
location,
though
developing
the location
should be
back of their
mind
Start up
business
develops their
business
develops their
business with a
single location,
however, they
can develop
their location
along with time
(Dees, 2017)
Lifestyle
entrepreneurship can
develop their business
in several location as
they have the passion
to expand their
business
Donation Donations can be
done in the non-
profitable and the
charitable
Small
business
does not
donate in
Donation can be
done according
to their
business and the
Life style business
entrepreneurship does
not provide any fund
for charity and

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organization and they
done in regular
interval for their tax
saving also
NGO or nay
charitable
firm due to
their lack of
fund
profit gaining,
however it
varies with
economic
performances
donation as they do
not trust in the idea
Market operation Market strategy
related to social
entrepreneurship
develops according to
the co-operation that
can be obtained from
the employees
working for the
company (Dees,
2017).
Small
business
generally
specifies
their target
market with
the assurance
that the
target market
would be
impresses
with their
products or
services. thus
they target
small market
segment
Start up
business
depends on
their market
oriented
operations and
the marketing
campaigns
Market co-operation
does not develop for
the lifestyle
entrepreneur and have
their personally
structured models and
strategies to run their
business.
Organizational
structure
The specific business
strategy has been
developed by the
manager of
organisation and the
rules and the
regulations are to be
followed by the other
members as well
Small
businesses
do not follow
any specific
construction
for their
organization
and the
individual
activities of
the
Start up
business at the
initial stage,
follow
organisational
structure in
order to uphold
harmony
Lifestyle
entrepreneurship
generally does not
pursue any specific
arrangement within
the organisation.

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employees
are
responsible
for it.
Table 1: Similarities and differences between entrepreneurial ventures
(Source: Learner)
From the differences in terms of the market exit strategy, marketing strategy, structure, mode of
investment, location donation and market operation, the similarities and differences have been
drawn.
LO2: (P3, P4 and M2)
Relevant statistics and data how small and micro businesses impact economy
As opined by Cowling et al. (2015), small and micro businesses are considered as backbone of
UK market, and it drives increase by opening new markets to create new jobs. In 2014, it was
estimated that around 5.2 million businesses were generated in UK. As of 2018, small businesses
have defined for 99.3% of the private sector business while it was estimated that there were
99.9% of the SMEs. Within the SMEs, the micro-businesses have been booming, and start-ups
have risen hugely, as 30-40 years of people are starting their own business. This has defined
growth of technologies and self-employment, like broadband and smartphones, which have
blurred distinction between private life and work. According to Cowling et al. (2012), as SMEs
are playing a vital role, it is estimated that 600 million jobs would be required in the next 15
years. While SMEs also lack access to the capital investment and finance. For example, in
Canada, businesses having less than 500 employees are being categorised as SME while as per
Companies Act, 1985, the turnover of SMEs will not be more than £5.6 million. For instance, in
China, SMEs play a vital role towards development of China and rapid industrialisation, with
99% of total business ventures. However, SMEs also adapt with the dynamic business that may
switch to online transaction of services and goods, to the e-commerce.

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Figure 1: SME Contribution in UK sectors
(Source: Makeitcheaper.com, 2018)
The above figure shows that business has greatly accounted in major sectors of UK where IT,
retail and hotel is quite low, but the professional and manufacturing services are rising heavily
with 32% and 14%. Typically, Small businesses also have a joint turnover of £2.0 trillion in the
last year. The small business is over 16.3 million people in UK that accounts 60% of private
sector service. On associating with business growth, SMEs have recorded a high of 50% in terms
of operations (Cowling et al. 2015). Considering micro businesses, around 5.7 million
enterprises account 99% of private sector firms while there is about 60% of the total UK segment
service. SMEs also have 73% of net private job formation in UK that has created about 2 million
jobs since 2010. Below figure analyses, micro and small businesses account for 18.9% and
23.4% respectively, in contrast to medium first with 29.2%, as of 2018.

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Figure 2: Percentage of SMEs
(Source: The Conversation, 2018)
Differences small, medium and large businesses effect on the economy with statistics
SMEs have been considered as a focal point to shape the EU. Official statistics that is identified
by the employment size is fewer than 250 people being employed. Besides, the export-oriented
and inventive SMEs seem to be concerned on the consequences of Brexit. SMEs in Scotland and
Northern Ireland view the Brexit to appear with counterparts in Wales and England (Kitching et
al. 2015). The figure shows that large businesses account for 87.7% while small and medium
enterprises account for 7.7% and 4.6% respectively.

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Figure 3: Difference shown for Small, medium and large firms
(Source: Services, 2016)
In recession, the large firms are probably more likely than the SMEs to resort to personal cuts. In
contrast to 99% of the English business, SMEs are regarded as the engine for economic growth
to rebuild economy from financial crisis. While the trade unions may provide a means to regulate
employment relations to ensure that the interests and objectives of employees and employers in
English labour market work well. It is considered that flexibility in smaller firms could be a key
strength than weakness (Andres and Round, 2015). For policy makers, proper attention needs to
be paid, so that managing HR in micro and small firms can be effective to fit with the HR
structure and strategy. Around this, the difference could be that like small and micro businesses
may have small market share with less number of employees but the large businesses will surely
have a bigger workforce and it will gain more revenue.
Importance of small businesses and business start-ups to the growth of social economy
Small-scale businesses are an integral share of the economy. These businesses, even though are
small and the production amount is less, contribute considerably to the GDP of a nation (Storey,
2016). Business start-ups are also equally significant to the economy as it encourages new
entrepreneurial minds to start something new. Promoting entrepreneurship has many benefits to
the social economy (Vorley, Fearne and Ray, 2016). The following are some ways in which
small businesses and start-ups help in the development of the market.
• Increase in Production: The UK economy is having steady growth and is regarded as one
of the strongest. In order to maintain growth, there must be a constant amount of production
outflow by all the sectors of the economy. Small-scale businesses help in contributing to the
GDP. Hence, promoting such businesses can enhance the production rate of the country.
Encouraging new start-ups might not give heavy production at the start but eventually, it can
be a huge contributor. There has been a 30% growth in production after the advancement of
such start-ups in the UK economy (Rangaswamy, Kumar and Bhalla, 2018.).

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Figure 3: Growth in production by Small Businesses and Start-ups
(Source: Sedláček and Sterk, 2017)
• Turnover: This is one of the most common and important benchmarks that is used in
measuring the financial contribution. The small and medium-sized businesses have been
facing a steady growth in the turnover that sets a bar for the other industries. The combined
revenue of small and medium scale businesses is £2.0 trillion in 2018 (Daskalaki, Hjorth and
Mair, 2015). This is quite a relevant stat that proves that small and medium scale industries
are highly important for economic growth. This amounts to a massive 52% of the private
sector’s total income.
• Employment enhancement: The human resource of a country is one of the most crucial
assets. Unemployment is a huge drawback for the sustainability of an economy. Small
businesses and start-ups tend to employ labor at a cheap rate. This enhances the employment
condition of the country. Small businesses also need a human resource in order to sustain.
Hence, research has found that over 16.3 million people in the UK are employed by small
businesses (Chell, Spence, and Harris, 2016). This is a great advantage for the economy as it
helps to mitigate the unemployment rate. Therefore, it is a constructive impact on the growth