An Analysis of Entrepreneurial Ventures and Small Business Management

This report provides a comprehensive overview of entrepreneurial ventures and small business management. It begins by examining various types of entrepreneurial ventures, including survival, private, social, managed growth, and high-growth firms, relating them to the typology of entrepreneurship, such as scalable, lifestyle, and social typologies. The report then explores the similarities and differences between these ventures, analyzing managerial styles, sources of finance, and key managerial skills. It also interprets relevant data and statistics to illustrate the impact of micro and small businesses on the UK economy, highlighting their contribution to turnover and employment. Furthermore, it discusses the importance of small businesses and startups to the growth of the social economy. The report further delves into the characteristics, traits, and skills that differentiate entrepreneurs from business managers, exploring how entrepreneurial personality reflects their motivation and mindset, and the impact of experience and background on entrepreneurship. The report uses examples like Richard Branson and Peter Jones, and includes statistical data to support its claims. The report concludes by summarizing the key findings and providing a thorough analysis of the topic.

Entrepreneurship
And Small Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1. Examine the different types of Entrepreneurial venture and explain how they related to the
topology of entrepreneurship..................................................................................................3
P2. Explore the similarities and differences between entrepreneur venture..........................4
LO 2.................................................................................................................................................7
P3 Interpret and access relevant data and statics to illustrate how micro and small businesses
impact on economy.................................................................................................................7
P4. Explain the importance of the small businesses and the business start-up to the growth of
the social economy.................................................................................................................9
LO 3.................................................................................................................................................9
P5 Characteristic, traits and skills of Entrepreneurs which differentiate them from business
managers.................................................................................................................................9
P6 How Entrepreneurial personality reflect their motivation and mindset.........................11
LO 4...............................................................................................................................................12
P7 Impact of experience and background on entrepreneurship............................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneur is the person who has unique ideas for a business and have the capability to
take risk in the market, and also capability to manage the business. An entrepreneur enters in a
market with small scale business, and if they want to grow that business in the market then it's
the duty of the entrepreneur to manage the business properly (Karimi and et.al., 2016). Company
has to observe the market and wait for the correct opportunity. Richard Branson, Peter Jones
entrepreneurs are taken into consideration for this report. Now for the growth of the venture there
are many managerial skills, and many types of entrepreneur ventures which helps to grow in the
market. This report will explain all those factors which helps to grow a small scale business in
the market.
LO 1
P1. Examine the different types of
Entrepreneurial venture and explain
how they related to the topology of
entrepreneurship.
Different types of Entrepreneurial ventures
are:
1. Survival ventures: This is the type
of business which has limited funds
and find difficulties in order to
generate necessary revenues. It can
earn the amount that may help in
living the normal life.
2. Private venture:- Private ventures
are the firms, which are well
established in their field and are
private, which means not
collaborated through government.
Like Tesco is counted in private
venture, Tesco is well established
multinational glossaries, and general
merchandise retailing firm
established in UK (Eijdenberg, Paas
and Masurel, 2015).
3. Social venture:- Small size social
ventures are the one who are
engaged with social activity at a very
small scale. Like funeral firms are
the firms who do dead people's
funeral. This types of firms are not
working at a large scale. These are
the type of firm which took loans
from friends, or family or bank to
start up the small scale business.
Their motive is not to take over the
market but to survive their well
being. Survival Firms are the firm
who survive in the market. These are
mainly medium scale firms which
has less than 250 employees, small
scale businesses which has less than
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50 employees then micro scale firms
which has less than 10 employees.
This are the firm which survive
somehow in the market because of
some changes in the market, as well
as within the firm (Eijdenberg, Paas,
and Masurel, 2015). Like change in
technology, or change in market
demand and many more. This
typology is of small scale ventures,
as these firms have to put hard
efforts to generate small revenues.
4. Managed growth Venture:- these
venture have limited growth and
have adequate funds to sustain in the
market for longer duration (Karimi
and et.al., 2016).
5. High Growth Firm:- High Growth
firms are the firms which are
providing product or service to the
market in exchange of money, and
making its profits. Let's take the
example of Facebook, Facebook is
providing the service of a social
media application through which
number of people can connect with
each other. And as more as people
are joining Facebook, Facebook is
getting money accordingly. So
basically it’s a profit generating firm.
A large number of people are on
Facebook, and still joining. The firm
who generate profit in exchange of
product or services, at a large scale,
are counted in High Growth Firm
(Wang and Liu, 2016). This firms are
the firm whose aim is gain more
potential among the growth firms,
and are expected to grow at faster
rate in relation to the overall market.
Typologies of entrepreneurship:
11 Scalable typology:- This type of
typology is generally implemented in
small or survival firms where
companies struggle to get revenues.
These firms pay more attention on
innovative ideas so that it can sustain
in the market for longer duration.11 Lifestyle firm- This is related to
small size and private ventures, as
these types of firms are formed to
generated sustainable amount of
income. It is related to private
ventured which has managed growth.11 Social typologies:- Social
enterprises are the firm who invest
their creative skills and unique ideas
for the social purpose without any
profit aim. This is related to small
scale ventures as social firms
generate reasonable amount of profit
so that it can recover its cost.
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P2. Explore the similarities and differences between entrepreneur venture
Survival firms Private ventures Managed
growth
ventures
High Growth
Firm
Managerial Style Autocratic
leadership
managerial style is
best for the small
companies because
the industry is
small, and the
owner is the leader
and only leader has
to take all the
decisions for the
firm and give it the
employees to
implement it.
Laissez-faire
managerial style is
being followed by the
private firms. In this
style employees are
free to take decisions
on their own if it's the
demand of the
conditions. And then
there the manager will
term as leader to
motivate them
(Taneja, Pryor and
Hayek, 2016).
Persuasive style
is best for the
managed
growth ventures
because here
also the
decision making
is in the hand of
the owner only,
but by
discussing it
with the co-
workers.
Democratic
managerial style
is best for the
high growth
company because
this style
includes
employee to
discuss the
matters with the
leaders so that a
proper decision
can be taken for
the growth of the
company.
Source of finance Small firm's source
of finance is
through friends or
families, or
personal loan.
Hence, the
company is in its
critical condition of
being survived in
the market the
owner is not
The source of income
of the private firm is
also from friend and
family. Because like
survival firm, private
firm is also small scale
firm, and its only
purpose is to get
income so that he/she
can survive his/her
personal lifestyle. So
The source of
finance is from
bank loan,
hence the
company is
being counted
in the growth
firm so the
owner has
enough money
to return it to
This firm also
prefer to take
loan from the
bank. Because
this firm is also
count in growth
firm like
managed firm.
So the owner is
capable to return
the amount of
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capable of taking
huge amount of
money from bank,
because it can lead
to a heavy loose in
his business as well
as in his personal
life (Roig-Tierno,
Alcazar and
Ribeiro-Navarrete,
2015).
there is no purpose to
take a huge amount of
loan.
the bank, so the
owner prefer to
take it from the
bank.
loan to the bank.
Managerial Skills Time management
& organisational
awareness both
skills are being
used as managerial
skills in small firm
because the firm is
survival then one-
one second is
important for the
firm to take
decisions and act on
them. So time
management plays
a very important
role in this type of
firm and also the
organisational
awareness hence,
all the decisions are
Organisational
awareness plays a very
important role in
private firm, being in
market they should the
requirement of the
market, and the firm,
and it can be done
only if they have the
full awareness about
the market as well as
the organisation
(Ferreira, Loiola and
Gondim, 2017). This
will helps them to take
right decisions for the
firm.
Problem
Solving is the
best style for
the large
business
because to
maintain the
growth of the
firm in the
market its a
very important
thing to solve
the problem of
the firm as well
as of the
market. By
solving the
problems as
well as the
issues of the
Communication
is key factor to
the success, and
being in high
growth
companies in the
market, the
leaders should
discuss the
problems with
the co-workers,
to motivate them
so that they can
work effectively
for the company.
And that is good
for the growth of
the company
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being taken by the
owner then he has
all the information
about the
organisation.
market,
company is
providing
solution which
can lead to
demand of the
company in the
market (Amato
and et.al.,
2017).
Similarities between different ventures
All Entrepreneur come to the market
with the mind-set of taking risk, and
growing their business at the large scale in
the market, and more investments. So this
the main similarities between all the
entrepreneur ventures (Wang and Liu, 2016).
Being an entrepreneur, he/she has to take
risk no matter what. And an entrepreneur
should have the knowledge of investing
money at the right place at the right time.
All these firms have common objective to
satisfy its consumers and retain in the
market for longer duration. All these firms
need funds to sustain in the market for
longer duration. Innovation is another
similarity between these companies that
make them able to offer satisfactory services
to consumers.
LO 2
P3 Interpret and access relevant data and statics to illustrate how micro and small businesses
impact on economy.
UK is the country where many small business are running and these small businesses really
helps to grow the economy of the UK.. And the figure of total turn over of these industries in
2018 were £2 trillion. 97% of the total market of UK is being covered by the small scale
businesses i.e., 4.5 million. According to 2018 record of UK the total turnover of the market, 37
% of the turn over is being covered by the small scale business and generating 48% of the
employment (Burns and Dewhurst, 2016).
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The average premium rose from past few years like it was $5,700 in 1999 and it rose by
$12,700 in 2009. But as a result it goes down by 6%. Like it was 65% in 1999, and it goes down
by 59% in 2009.
The community bank for small scale business loan receives $9 billion from the TARP
programme in 2009 (Lima and et.al., 2015). The act of tax cut and Job act of 2017 offers 20% of
deduction in the standard deduction on the qualification income to the small businesses. Those
ventures who are making less than $250,000, an act was introduced for them named as “The
Bush Tax Cut” which was introduced in 2001 and 2003, but was again extended in 2010, and
then in 2012.
Figure 1: impact of small business on UK economy
(Source: Essential Facts You Should Know about SMEs in the UK, 2019)
Small and medium size business lays a huge impact on economy of business. SMEs also
play a very critical role in the world economy by contributing to the employment scenario along
with the input and output. There are certain points to be understood here. As per a report
published in 2015, approximately 600 million jobs would be required worldwide over the next
15 years. Predominantly, most of the formal jobs that are available in developing markets are
created by the SMEs. These industries are engaged in donating about 44% revenue to UK
economy. They are engaged in creating several job opportunities (Taneja, Pryor and Hayek,
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2016). The small business in UK have less than 250 workers. The total number of employment
which has been created by Small and medium enterprise is 60% in United Kingdom. 25-27%
Small and medium size enterprise has been opened in UK that provides 70-80% job
opportunities to people. The annual turnover of small and medium sized enterprise has been
reached to about £1.8 trillion. These companies have helped in increasing the economic lifestyle
and living conditions of people.
P4. Explain the importance of the small businesses and the business start-up to the growth of the
social economy.
Social economy can be defined as impact of economic conditions on social behaviour of
individuals. It helps in shaping the buying trends and improving living standards of people of the
country. Factors because of which small businesses and business start-up helps in social
economy growth are:-
1. Creation of employment:- Small businesses and start-up ventures helps to create new
job profile and new employment in the market. Which is again very helpful for the
economy growth of the country.
2. Innovations:- New business will bring new ideas, with new innovation of the things in
the market. And new innovation attracts more revenue to the country from different states
or country (Roig-Tierno, Alcazar and Ribeiro-Navarrete, 2015). By introducing new idea,
people like to invest in your business, which brings economy to your country. Which
means economical growth.
3. Social purpose:- When a new business is being set up in the market then it also brings
new ideas for solving some issues of the market. So basically, new business helps to
solve many social problems.
4. Integrating Diversity:- New businesses focuses more on talent and quality of the person
rather than the position of the employee, by distributing equal amount to the group brings
them together and that leads to the integrity in the society (Burns, 2016).
LO 3
P5 Characteristic, traits and skills of Entrepreneurs which differentiate them from business
managers
Characteristics:-
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Entrepreneurs are recognized as problem solver of customers, they have solution of every
problem and set their business around these solutions which help out the people in different
manner. Whereas business managers are only working for effective performance of their
employees, they do not work on ideas and innovation. Entrepreneur has various ideas to make
life easier and convert these ideas into product and services. These ideas are then offered to
customers at a particular value to earn profit in return. Entrepreneurs are self motivating, risk
takers, flexible to work in all environment and are passionate about their work. On other hand
business managers are not good risk takers and can work only in a particular environment
(Amato and et.al. 2017).
Honesty:- Entrepreneurs are more loyal with their work as compare to business mangers
as they are working on their own ideas and taking risk. On other hand, business managers are not
working in development of new ideas and neither they take financial risks. They only focus on
their salary and not on development and risk faced by the organisation
Communication:- Entrepreneurs have good listening power and they take action after
listening and understanding the things deeply. Their confidence level is high as compare to other
business managers and they never hesitate to take their ideas in front of anyone (Volery and
Mazzarol, 2015).
Skills:-
They have good soft skills and are polite with their words which easily differentiate them
from other business managers. They are good in time management and are efficient in their
work.
Traits:-
Entrepreneurs are having different traits which make them differentiate from business
managers. They have self control and are patient in nature which describe a good leadership
quality. Motivation of entrepreneur is to achieve, on other side managers only look to have
power and position in the organisation. They have high self awareness and always inspire others.
They have good reputation in market as compare to other mangers. They think about people and
their development whereas mangers only think about their growth and salary. They do not fear to
failure and face every challenge easily. They are rational in decision making and work on their
ethics (Burns and Dewhurst 2016).
10

There are many entrepreneurs who have achieved so much in their life with the help of all
these Characteristics and traits differences. One of such personality is Mr. Richard Branson a
British investor and founder of Virgin group. He is good risk taker because of which he is
running more than 400 running companies. His ability to think differently resulted as a tough
competitor in market. His decision power and positive nature has made this huge success of his
company. He motivates his employees and give them priority which reflect his leadership
quality. Another such personality is Mr. Peter Jones who is a passionate entrepreneur and
believed in his ideas. He converted his ideas into reality and work on it, the result was success of
his business in market(Burns 2016).
P6 How Entrepreneurial personality reflect their motivation and mindset
Every successful Entrepreneur have such traits which develop their overall personality.
These traits are briefly described below:-
Openness: -
This trait include how entrepreneur come up with new ideas which can be converted into
reality and how imaginative they are. It also includes whether the person is able to face
challenges from market as well as within the organisation. Richard Branson have this trait which
reflects in his personality as well as work. He has good vision and always come up with new
ideas which results in establishment of new business as well as growth of the organisation.
Conscientiousness: -
To work as an entrepreneur one should be conscious about what actually they are doing.
Work they perform should be in organized manner and every work they perform should be
methodic. Personality like Richard Branson and Peter Jones are self disciplined and organised as
person. This is only the reason why there business are expanding day by day and organisation is
leading in market (Scarborough 2016).
Extraversion:-
People who are extrovert are quite energetic and love to interact with people. They are
talkative and are outgoing in nature. Being social is there plus point and they easily attack people
because of their charm personality. On the other hand, people who are introvert are not social
and believe to have less interaction with others. Richard Branson is extrovert in nature because
of which people want to work with him and be part of their organisation. He is keen in taking
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ideas from others and implementing them for growth of the organisation (Volery and Mazzarol
2015).
Agreeableness:-
In this basically the person is friendly in nature and cooperate with its surrounding. Such
people are very thoughtful and warm in nature. Richard Branson is also very supportive in nature
and this is a basic reason why he is able to run such organisation and is able to expand his
business.
Neuroticism:-
This trait shows whether person is able to control negative emotions or not. If a person is
high in neuroticism, then he is moody in his work and easily get tensed due to work pressure. If
compared to Richard Branson, he is stable in mind and keep a balance between work and life.
From the above study on Richard Branson it is clear that to be a good entrepreneur one have
to work on these traits so that he can add positive traits in his personality and can remove all
possible negative aspects which can effect once professional life. All business managers should
work on these traits if they want to become future Entrepreneurs.
LO 4
P7 Impact of experience and background on entrepreneurship
There are two great entrepreneurs who have work so hard to reach this level of success,
Mr. Richard Branson and Mr. Peter Jones.
Richard Branson:-
He was born in England in the year 1950. When Richard was in school he was not
interested in studies and was good in marketing so he dropped out from school at age of 16 to
start magazine “Student”. He succeeds in selling the magazines and within one year he opened
his recording studio “Virgin Records”. At age of 23 he got huge success and become millionaire.
He always believed that number of companies never decide once success but quality of services
provided by company. He is self confident, trustworthy, has positive nature and always
passionate towards his work. He also takes care that company has a positive culture and always
listen to people working in his organisation. He believes one should learn from his mistakes and
improve as a person. His decision making skills are high because of that only he is at this level of
success. His ability to think and vision is broader in terms. These traits clearly showcase how
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