Entrepreneurship and Small Business Management: Semester 1

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

TABLE OF CONTENTS
Introduction..................................................................................................................................................1
LO 1.............................................................................................................................................................2
P1 Examine different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship......................................................................................................................................2
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector........................................................................3
P2 Explore the similarities and differences between entrepreneurial ventures.......................................3
LO 2.............................................................................................................................................................6
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses impact
on the economy........................................................................................................................................6
M2 Evaluate the differences small, medium and large businesses make to the economy, applying
relevant data and statistics.......................................................................................................................7
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy...................................................................................................................................................7
LO 3.............................................................................................................................................................9
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate them
from other business managers.................................................................................................................9
M3 Explore and examine different lines of argument relating to entrepreneurial characteristics.........10
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset...................................................................................................................................................11
LO 4...........................................................................................................................................................13
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship....................................................................................................................................13
M4 Analyze the link between entrepreneurial characteristics and the influence of personal background
and experience to specific successful entrepreneurs.............................................................................13

Conclusion.................................................................................................................................................15
References..................................................................................................................................................16

LIST OF FIGURES
Figure 1: Small business economics............................................................................................................6
Figure 2: Small and medium size business in private sector contribution..................................................7

LIST OF TABLES
Table 1: Differences between entrepreneurial ventures..............................................................................3

Introduction
Entrepreneurship is the medium through which individual can bring his or her idea by presenting to the
world their new products or services not prior available in market. Small businesses also managed
through entrepreneurs to increase their business potential and earn profits. On this context, the report
will show the entrepreneurial types and ventures and their connection with the entrepreneurship
typology. The economy is also influenced through small business by positive manner more. In UK, the
positive results will be highlighted through statistical data of small businesses and start-ups on business.
In the next, the traits and skills of the entrepreneurs will be examined along with the mindset and
motivation in their personality. Finally, the study personal background and experience will be reflected
and justification will be given considering two entrepreneurs examples.
1

LO 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.
Entrepreneurship can be referred as the person willingness and capacity to begin a business and
managing the activities together with any risk in respect of making profit. Entrepreneurial activity
includes determining the opportunities in the economic system. The different types of entrepreneurial
ventures are:
Serial entrepreneurship: It consistently means starting the new venture and following disposing it off so
as to start the new business again. The main objective of this entrepreneur is to give out the learning to
the start-ups and then once get successful takes the new venture but in this risk is very high.
Corporate entrepreneurship: It includes management of the large organization that own shares in the
role of professional. This entrepreneurship is important to develop the value so as to generate more
revenue through actions and thoughts of entrepreneurs (Piperopoulos and Dimov, 2015). In this
employees are supported through the management in order to carry out changes in structure.
Private sector entrepreneurship: It is managed by the individual themselves with the objective of
earning the profits in the business.
Social entrepreneurship or enterprise: This entrepreneurship present as social enterprise and act as the
transformation agent that aims to instilled mindset of entrepreneurial in the operations (Zahra and
Wright, 2016.). The common social enterprises are Divine chocolate, the big issue and likewise. The
different types of social enterprises are charity, social enterprise, social business and for profit
organization.
Public sector entrepreneurship: It is founded as the government linked organization and generally state
owned that uses entrepreneurial fundamentals to manage the operations and entities. It is effort carried
out by the authorised in respect of motivating the innovation concept through the start-ups that can help
in economy development and growth.
2

Lifestyle entrepreneur: It begins for the lifestyle and managing the passion and then finally disposing it
to generate the gain. The scope of this entrepreneurship is to use the personal capabilities and increase
the revenue. Its main stakeholder is family to meet the expectations.
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector.
The main integration of entrepreneurial ventures and typology is based on the entrepreneur’s objectives
and purposes. The typology covers the types of entrepreneur but these consider the ventures approaches
to develop their business management in the environment.
The size and nature is based for the entrepreneurship category. According to the size of business, the
entrepreneurs are small, large and medium while on nature basis it is private and public. The public
entrepreneurial venture is controlled through laws and regulations of government. The venture purpose
is to gain the income so that it can apply for society welfare and GDP can also be increased (Breugst
et.al.2012). The United Kingdom government has hired the professionals for analysing the activities of
business for generating growth report. In this context, the suitable example is child support agency that
gives education to poor class society to increase standard of living.
Irrespective of public enterprises, the private enterprises concentration is on profits increment. This
venture has the potential of increasing the profits with generating the revenue. It has the capability to
increase to give their contribution in the economic development and give opportunities of employment
to the large section of society that helps community to the big scale (Autio et.al. 2014). The private
sector business venture is Iceland Foods Limited comes in supermarket that includes no government
intervention and profits are used for business expansion only.
P2 Explore the similarities and differences between entrepreneurial ventures
The entrepreneurship ventures have potential of similarities and differences on various aspects in
concern with operations and cultures of business. The below table reflects the differences and
similarities in entrepreneurial ventures:-
Table 1: Differences between entrepreneurial ventures
Differences High growth venture Small profit venture Lifestyle venture
Influences The start of the venture The individual manages This venture is
3

is little slow but
developed for the
influence of getting
more growth and
revenue to the next
level (Wright and
Stigliani, 2013).
the venture alone with
having few employees.
The income of the
venture is also not so
high if it compare with
the bigger organizations
(Garrett. and Covin,
2015).
established well as it
gets greater revenue by
society lifestyle
management.
Income The comparison of past
and current income is
done and then
difference is calculated.
This venture generates
the good income by
creating more
promotional activities
(York et.al. 2016).
The owner of the
business has the
responsibility to have
operation management
and accordingly makes
the statement of
income.
Scope The new development
of the product comes in
the scope of high
growth venture.
They gain the revenue
for developing the
sustainable economic
conditions.
The professional
employees and team use
can be conducted in
order to gain the profits
in most professionalism
way (Piperopoulos and
Dimov, 2015).
Growth The regulations and
laws are used for
services and products
encouragement in order
to gain the profits
(Terjesen et.al. 2016)
The venture growth is
calculated through share
in market and earnings
included in business.
The stakeholder interest
is also included in the
business growth of
lifestyle venture.
Example Retail outlet carrying
out operations online
Guest house or Inns or
small level hotel.
Consultant offices,
online stores.
4

Similarities
Irrespective of differences in ventures there are similarities also. In all contexts, entrepreneur operates in
different scenarios as per growth and operations of business. Every business unit required to develop the
budget in terms of managing the high losses in respect of maintaining the financial position. All the
ventures conduct the operations in order to have suitable profits with applying maximum available
resources (Breugst et.al. 2012). Thus, all the ventures require generating the revenue in respect of
moving further for development and growth.
5

LO 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses impact
on the economy
The micro and small businesses has the important role in economic development of UK. The
contribution in GDP and development is very significant for the nation. As per current data based on
statistic, the micro and small businesses are providing opportunities of employment to local society by
increasing development of economy. Through the research of 2018, 5.7 million medium small firms are
presented in UK that reflects involvement of 95% of businesses (Storey, 2016).
Figure 1: Small business economics
(Source: World Bank, 2019)
Together with that 51% of the businesses are privately run through small business turnover across UK.
From the data, entrepreneurs and the small firms are responsible for economic growth of the country.
The firms has yearly revenue 1.9 trillion in GBP and seen that achieving the highest position in contrast
with other business fast (Burns and Dewhurst, 2016).
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Figure 2: Small and medium size business in private sector contribution
(Source: World Bank, 2019)
On the next side, by analyzing the small business profits are getting the second place in the country’s
economy but due to Brexit small businesses also get impacted on account of sustainability and
employment rate in growth terms (Bridge and O'Neill, 2012). In addition, UK employment opportunities
are also increased that supports in poverty reduction and GDP increment. In nutshell, small and micro
businesses concentrate on customer offerings by innovative product serving that also increases
individual standard and export of the country.
M2 Evaluate the differences small, medium and large businesses make to the economy, applying
relevant data and statistics
The small, medium and large business has different size but all participated in economy of the country
for its increment. According to year 2017, it has been seen that large enterprises and SMEs has played
their role by including 5.7 million in UK businesses. Around 33% the contribution of small firms in
economy and 22% employment turnover around is there. However, SME and big businesses are also
showing their interest in production firms and is giving around 30% in GDP increment. The significant
component that help in employment rise and has estimated to give 5.5 million jobs through small
medium enterprises (Blackburn et.al. 2013). The estimation of rise in 4% increase in private enterprises
is also noticed which in amount stands for 5.7 million in 2017.
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy
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