Entrepreneurship and Small Business Management Report

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Entrepreneurship and Small Management

INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................2
P1, M1 Examining different types of entrepreneurial ventures including their relation with
entrepreneurship typology......................................................................................................2
P2, D1 Exploring the similarities and difference between entrepreneurial ventures.............4
TASK 2......................................................................................................................................6
P3, M2 Assessing and interpreting relevant statistics and data to describe the impact of
small and micro businesses on the economy..........................................................................6
P4, D2 Explaining the importance of small businesses and business start-ups to the growth
of social economy..................................................................................................................8
TASK 3....................................................................................................................................10
P5, M3, D3 Determining the characteristics traits and skills of successful entrepreneurs. .10
P6 Assessing how aspects of entrepreneurial aspects personality reflect entrepreneurial
mind-set and motivation.......................................................................................................12
TASK 4....................................................................................................................................14
P7, M4, D4 Examining how experience and background can foster or hinder
entrepreneurship...................................................................................................................14
Conclusion and recommendations...........................................................................................16
REFERENCES.........................................................................................................................17

INTRODUCTION
Entrepreneurship and small business management is crucial for the development and growth
in economy. In this regards, the report will cover different types of entrepreneurial ventures
including their relation with entrepreneurship typology including similarities and difference
between entrepreneurial ventures. In addition, relevant statistics and data to describe the
impact of small and micro businesses on the economy and the importance of small businesses
and business start-ups to the growth of social economy will be discussed. The report will also
determine characteristics traits and skills of successful entrepreneurs and how aspects of
entrepreneurial aspects personality reflect entrepreneurial mind-set and motivation. Finally, it
will demonstrate how experience and background can foster or hinder entrepreneurship.
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TASK 1
P1, M1 Examining different types of entrepreneurial ventures including their relation with
entrepreneurship typology
Entrepreneur: Entrepreneur is a person who take steps to a start a business and who has a
vision and plan for new business. In this regards, the person make all efforts in order to
found, organise and start a new business on his or her own.
Entrepreneurship: Entrepreneurship is a willingness and capacity of an individual in order to
organise and develop effective management of business venture. This can be done by taking
risks in business to make profits (Benson, 2016). Entrepreneurship in simple words is a start-
up of new business. The different types of entrepreneur venture are described below:
TYPES OF TYPOLOGY
Individual entrepreneurship: An individual entrepreneur works individually rather than
working with employees. In this, the individual is responsible for the business rewards,
profits, losses and risks. He or she brings new strategies and ideas for the establishment of
their new small business through investments.
Corporate entrepreneurship:In corporate entrepreneurship, entrepreneurs make effective use
of the development process of their new business by launching products inside of the existing
business. This helps to generate revenue and create values for the growth of business. It is
considered as the concept of new business growth and innovation.
Public-sector entrepreneurship: This refers to the public policy innovation in order to
generate the economic prosperity at greater values. This can be done by transforming the
economic environment status into activities that are engaged in creation and innovation
towards economic units.
Types of entrepreneurial ventures
Start-up: In start-up business, an entrepreneur comes up with new innovative business ideas
to start the operations at initial level. The start-up business is initiated by the entrepreneur in
order to search the repeatable or scalable business model. Start-up entrepreneurs are newly
emerged in the ventures and their aim is to develop viable models to meet problems and
needs of market.
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Public-private partnership:It is a co-operative arrangement between two or more than two
public and private businesses (Crane, Matten and Spence, 2019). The nature is long term for
PPT in regards to entrepreneurship. The government use this as their mix strategy including
private and public businesses with each other.
Joint venture or acquisition: Joint venture or acquisition is a way for businesses and
entrepreneurs to expand their operations or start a new business with joint ventures. In
addition, it is also helpful for them in enhancingtheir brand image in the market through
making contract with other businesses.
Relation between entrepreneurship typology and entrepreneurial ventures
The major relationship between entrepreneurship typology and entrepreneurial ventures is
their purpose and aim of their entrepreneurs. The entrepreneurship typology includes the
entrepreneur types but these entrepreneurs use various methods of ventures in order to
maintain the business in the market environment effectively.
Life cycle of entrepreneurial businesses
There are three stages in life cycle of entrepreneurial businesses such as maturity stage, birth
stage and break-through stage. The first stage of the life cycle of entrepreneurial businesses
relate to birth stage where founders give birth to brand new organisation by executing their
new innovative ideas. The second stage is break-through stage where the organisation
establishes itself by introducing product and service strategies in the competitive market.
Finally, the last stage is maturity period which shows that the business is now matured and
ready to cease for exist effectively.
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P2, D1 Exploring the similarities and difference between entrepreneurial ventures
There are some similarities and differences between entrepreneurial ventures on the basis of
various aspects in business culture and operations.
Basis of
difference
s
Lifestyle venture High growth venture Small profit venture
Growth The growth and
development of venture is
calculated according to the
interest of stakeholder’s.
Different policies and strategies
are used to promote business
products and earn profits.
The growth of this
venture is calculated
through its earning I
terms of profit and
market share.
Impact The business generate high
amount of revenues as they
are established well by
managing lifestyle of
societies (Davidsson, 2015).
The venture under the initial
start aims to attain high profits
and growth.
In this, there are few
employees along with
the individual who
owned the business.
The revenue an
growth is low as
compared to the large
businesses.
Scope In this, personal and
professional skills are used
to generate revenue.
The business scope is aligned
with new product development
process and products creation.
The aim is to generate
revenue in terms of
economic
development within
the country.
Income The owner of this venture is
responsible for operational
activities and recording
income statements.
The growth in income is
measured by comparing the
present income with past
income records.
This type of ventures
generates revenue and
profits by promotional
activities.
Example Consultants and online
stores.
Electronic and online retail
shop organisations.
Small hotel and guest
house.
Intrapreneurship: Intrapreneurs are self-motivated and have competitive skills and
personality. Such entrepreneurs do not make investments in terms of capital and funds in
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order to avoid the risk of loss within organisation. In addition, they formulate strategies and
plans to gain profitability and minimise chances of getting losses.
Social entrepreneurship: Social entrepreneur’s works for the economic development that
they establish their business for the development in society through environment friendly
methods. The main aim of such entrepreneurs is to identify the issues within societies and
people facing problems in order to provide them effective solutions.
Thus, it can be said that the entrepreneurial ventures have different similarities and
differences which analyse growth, impact, nature and scope of different ventures.The
similarities between ventures show that they achieve their objectives and aims without any
problems effectively.
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TASK 2
P3, M2 Assessing and interpreting relevant statistics and data to describe the impact of small
and micro businesses on the economy
It can be said that the small and micro businesses are very effective for the development in
UK economy. These businesses are very helpful and provide vital contribution in the
development and growth in economy of the nation effectively (Dees, 2017). As per the
statistical data provided below, it can be said that small and micro businesses within UK are
contributing for the development in employment opportunities for number of people. The
data provides information that there are more than 5.7 million small businesses in UK
covering almost 99% of the business market share. The data revealed that the annual turnover
generated by the small businesses is around 51% of private businesses entities working
within country effectively.
Figure 1 SME and Large business contribution
The above statistical data shows that the sales revenue generated is around 1.9 GBP trillion.
Thus, it can be said from the above graph which shows that the small businesses are
contributing effectively towards employment and leading positions in economy development
over others (Business statistics, 2019). On the other hand, it can be said from the above
statistical data that the revenue generated by the small and middle businesses is achieved
second position in the country economy development.In addition, there is a great impact of
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Brexit on UK’s economy that these small and micro businesses are very effective in
managing the significant financial stability and employment rate within country. It can be
said that small and micro businesses are providing employment opportunities for local people
who is helping in assisting the poverty issues and enhancing the GDP rate to a great extent
effectively. These businesses are also focused on delivering creative and innovative products
and services to customers in order to increase the living standard to enhance the country
export activities.
Thus, it can be said that the micro and small business management has both positive and
negative impact on economic growth and development of UK. Moreover, there is a great
positive impact and importance of these businesses in balancing the economy of nation. From
the above statistical data, it can be said that the micro and small businesses has their own
importance in achieving the high growth in economy of UK after its separation from EU
effectively and efficiently.
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P4, D2 Explaining the importance of small businesses and business start-ups to the growth of
social economy
Social economy: Social economy is created through businesses which are related to rich
diversity or organisations such as social enterprise, co-operatives, mutual, praetorian
foundations and institutions and associations. These enterprises share the common values and
features related to the social objectives and individual primacy such as capital.
Social enterprise: Social enterprises are the organisations which formulates strategies such as
commercial in order to enhance the improvement level in social, financial and environmental
sustainability (DeSantola and Gulati, 2017). This helps businesses to increase the positive
social impact with the profitability for the external shareholders.
Corporate social responsibility: CSR activities are very important for the business to be
maintained in order to cover the social and local people responsibilities towards environment
to provide culture and welfare. These activities helps organisation to show that they are aware
of their social responsibilities in order to provide welfare to the societies and local people.
This also helps to protect the environment, social and health sustainability within country.
Importance of start-up business and small medium enterprise in the growth of social
economy
It can be said that small medium enterprises and start-up businesses are providing their
valuable contribution in enhancing social economy. These businesses are very effective in
reducing the poverty and enhancing living standard of people. The Brexit and political
stability has a major impact on UK economy and affecting it in a negative manner. It also
affects the operations of small businesses within country. Brexit is also affecting the export
and import activities and influencing the entrepreneurship growth in UK. There are different
contributions provided by small and start-up businesses which have a positive impact on
social economy of UK such as:
Employment: Start-up and small medium enterprises is creating employment opportunities
within country which is contributing in effective development of social economy (Mauer,
Neergaard and Linstad, 2017). The major contribution of these organisations can be assessed
in decrease in poverty and unemployment level effectively.
Income: Start-up and small medium enterprises enhancing employment which is helpful in
assisting the GDP growth and development including income per capita. It is helpful in
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maintain the financial stability and providing social advantages in order to satisfy the
customer needs.
Thus, it can be said that after the impact of Brexit, SME and start-ups are playing an effective
role in managing the financial stability and social economy in UK. This is helpful for
improving and developing the overall performance of country including its economy. Small
businesses and start-ups are acting as a backbone for UK economy after the uncertainty
clouds of Brexit impact.
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TASK 3
P5, M3, D3 Determining the characteristics traits and skills of successful entrepreneurs
Personal skills and characteristics: It can be said that characteristics and skills are required
for an entrepreneur in order to achieve success and also it helps to set them apart from others.
It drives forces to accomplish success in the hyper competitive environment in business.
There are many successful entrepreneurs in UK who has created their unique image not only
for the work but also in characteristics.
Entrepreneur personal characteristics: Personal characteristics such as self-confidence,
achievement needs, competitiveness, accept criticism etc. are necessary for a successful
entrepreneur in order to achieve their objectives and aim. They also have self-motivation and
self-confidence which helps to accomplish their desired goals. They never give up on
criticism and build their career in an effective manner to become competitive in thebusiness
environment.
Entrepreneur personal skills: There are some personal skills possessed by an entrepreneur
apart from the characteristics such as business, communication, human relationship and
problem-solving skills (Mazzucato, 2015). These are helpful for an entrepreneur in order to
achieve success in the business. These skills are also helpful in creating their own identity
and relationship in the market. The business skills are useful for them that it helps to analyse
the involvement of risks to make decisions accordingly.
Here are some skills, traits and characteristics discussed below of two successful
entrepreneurs:
J.K. Rowling
She is one of the most successful entrepreneurs not only in UK but also at international level.
She is known for her fiction novel series Harry Potter. The book and picture Harry potter is
one of the most popular in history. She is a wealthiest citizen of UK with approx. 1 billion net
worth. She is a strong personality and leads to bring traits and characteristics such as:
Focused: An entrepreneur requires focus on his work which is one of the most prominent
characteristics of him. It can be said that Rowling was focused towards her work and never
get distracted from any kind of problems (10 successful lessons from JK Rowling, 2019). The
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