Entrepreneurship and Small Business Management: Comprehensive Report

This report delves into the multifaceted world of entrepreneurship and small business management, covering various types of entrepreneurial ventures, including social and lifestyle entrepreneurship, and their similarities and dissimilarities. It assesses the impact of small and medium-sized enterprises (SMEs) on the UK economy, analyzing relevant data and statistics. The report explores the skills, traits, and characteristics of successful entrepreneurs, contrasting them with business managers. It examines how personal background and experience can influence entrepreneurship, providing insights into the factors that contribute to entrepreneurial success. The report emphasizes the significance of SMEs in fostering social and economic growth within the United Kingdom, highlighting their contributions to employment, innovation, and economic stability. The report also provides real-world examples of successful entrepreneurs and their characteristics.

Entrepreneurship and small
business management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Type of entrepreneurial ventures.......................................................................................1
P2 Similarities and dissimilarities on type of entrepreneurial ventures.................................3
TASK 2............................................................................................................................................4
P3 Assess and interpretation relevant data and statistics that affects on the economy..........4
P4 Significance of small-business and medium-sized enterprise towards the growth of social
economy in United Kingdom.................................................................................................5
TASK 3............................................................................................................................................6
P5 Determine the skills, traits and characteristic of the successful entrepreneurial and how
they are different from the business manager.........................................................................6
P6 Assess how the aspects of entrepreneurial personality reflecting its motivation and mindset
................................................................................................................................................9
TASK 4..........................................................................................................................................10
P7 Examine how personal background and experience can hinder or foster entrepreneurship10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship and small business are that application which requires a creative mind
to face the various level of risk. They have the skills, knowledge and understanding to organised,
managed and developed small and medium-sized enterprises. The present research report will be
studied on the various types of entrepreneurial ventures and identifying their similarities as well
as dissimilarities (Schaper, 2016). Further, there will be assessing on the impacts of new ventures
on the social and economic development. The assignment will also cover the significance of
small business on the growth of UK economy.
TASK 1
P1 Type of entrepreneurial ventures
Entrepreneurial venture are those people who mainly focused on the start up their own
business with limited resources by take into consideration all risk factors in their venture
business. For this, they used their creative idea in establishing new product or services and also
developing an innovative product. There are various types of entrepreneurial venture that will be
discussed below:-
 Social entrepreneurship: They are those entrepreneurial ventures who start up their
business for the aim of resolving the culture, social and environmental issues. They are
those individual who used their innovating ideas in developing solution that will be
unique to resolve the social issues (Naldi, Achtenhagen and Davidsson, 2015). The
problem can be solved by social entrepreneurship by creating an innovative product or
services for enhancing social welfare. They applied its social innovative ideas and put
them into an action in several fields. It mainly involves environment, education,
enterprise development and health. They build a sustainable firm such as profit and non
profit organisation and build a strong presence in the market.
 Life style entrepreneurship: It is that type of entrepreneurship that develop their
business for the aim of sterilizing its and other personal lifestyle rather than profit-
maximising. They are mainly concerned on the life rewards to deliver to those people
who will enjoy what they do with a passion for a living. This entrepreneurship turn their
passion and interest into the goods or services that will be provided to other people by
supports their lifestyle of opportunity and freedom.
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 Innovating entrepreneurship: It is that type of entrepreneurs that are mainly put their
innovative ideas into an action. They are the one who will generating new methods of
production, discovers new markets, introduce new products and re-organise the entity
(Morris,2015). They play their vital role in establishing modern capitalist by its
entrepreneurial spirit, have a capability to recognized and explore opportunities.
 Imitative entrepreneurship: It is that type of entrepreneurship who initiate the
techniques and technologies that are innovated by other entrepreneurs. They do not
prefer in creating their own technology for which they used other entrepreneurship's
ideas.They are more suitable to established their business in under developed countries.
Thus, they are the major contributor towards development of their economies in that
nation.
Typology of venture entrepreneurship are bifurcated into entrepreneurship activities
instead of various types of venture entrepreneurship. The main purpose for typologies is to
provide better understanding of attributes and characteristic of several types of entrepreneurial
(Liñán and Fayolle, 2015). Therefore, their activities are mainly categorised into technology-
driven, process development, income supplement new venturing and corporate venturing.
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Illustration 1: Typology of venture entrepreneurship

P2 Similarities and dissimilarities on type of entrepreneurial ventures
There are various types of venture entrepreneurial that establishing their business that
contribute towards the social and economic development. The social entrepreneurship are those
firm who implement their innovative ideas to create goods or services for resolving social issues.
Thereafter, the main motivate of this entrepreneurship is to enhancing social welfare. Apart from
this, the lifestyle entrepreneurship establish their business for the purpose of delivering life
rewards to the people for their passionate (Kuratko, Hornsby and Hayton, 2015). There are
various similarities and dissimilarities among social entrepreneurship and lifestyle
entrepreneurship. It will be further described as follows:-
Similarities
 The similarities among both types of entrepreneurship social and lifestyle is that they
mainly developed their business for the purpose of enhancing social value and welfare
(Kuratko, 2016). They are mainly focusing on the people for which they create goods or
services that resolve the personal issue of people and improve their lifestyle.
 They are mainly focused on the wealth maximization rather than profit maximization to
satisfy the customer in most desired manner. They always try to finding out the ways and
create those products or services as per their needs or desire of its clients.
Dissimilarities
 Lifestyle venture entrepreneurship launching their business by combine the personal
talent and interest of people. They are those entrepreneurs who are self-employed as it
invests on those project which inspire them to attain the personal freedom. On contrast,
the social entrepreneurship establish entity for the aim of achieving the social goals by
resolve issues of communities.
 The lifestyle entrepreneur establishing their business for attaining their personal goals.
Stuart Ross is one of the real example of lifestyle Entrepreneur who create training
programmes for the people (Curran and Storey, 2016). On the other hand, social
entrepreneurship provided those products or service for the aim for achieving the social
goals. For instance, Jordan Kassalow is a social entrepreneurship who run their business
in which it offers reading glasses to the people all over the world. The one more example
of this entrepreneurship is Sam Goldman and Ned Tozun who manufacturing a less
expensive lamps and provide them into the communities.
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TASK 2
P3 Assess and interpretation relevant data and statistics that affects on the economy
It the today scenario, the small and medium-sized enterprise plays a vital role in
contributing towards improvement in economic conditions of UK. For the past 10 years, the
economists gives a significant importance to the small-medium enterprises due to which they
also put more efforts towards economic development. For this the UK government also provide
financial assistance to the SMEs that encourage them for participation towards European
economy (Cucculelli and Bettinelli, 2015). The small, micro and medium-sized enterprise plays
a significant role for the development of European economy. Thus, they are the source of
innovation, employment and entrepreneurial skills. In the European Union there are majorly
contributed 23 million total turnover by generated from almost 75 million jobs and contribute 33
% in economic growth of UK.
The relevant data of economic growth are contributed by small and medium-sized
enterprise towards the improvement kin their economic growth. The parameters of overall
turnover is £1.6 trillion approxin the year 2014. It is only possible due to establishment of small
firm in which major contribution of private entity that enhance the employment rate about 47%
by creating a number of jobs in several sectors. Apart from this, in year 2013 and 2014 as several
start-up their business in UK and they also contribute towards enhancement in the economic
growth.
It has been also analysed that the small-medium sized enterprise created a fresh product
whose demand is more that helps in increasing satisfaction level of customers. From this data
and figures it has been indicated that the entity is now established business and improves their
earning capacity from 5% to 7% in the 2016.
It has been also asserted that there are various types of small and micro enterprise that
operating its firm along and majority of entrepreneurial is a sole trader. It is the main reason the
United kingdom government support the small-business enterprise by through provide them a
financial assistance. It has been noticed that they also contributed in enhancement of
employment rate and it also creating social values.
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P4 Significance of small-business and medium-sized enterprise towards the growth of social
economy in United Kingdom
The small and medium-sized firm play a vital role in contributing towards the social
development in the UK due to which the per-capita income is more stable. They are contributed
in the creation of new goods or services in the UK market and also improve the employment rate
(Carraher,Welsh and Svilokos, 2016 ). The small business are those in which there are only less
than 250 employee working and develop innovative products which increase growth rate. The
importance of SMEs towards the social economy in UK will be described as follows:-
Increase Employment rate
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The contribution of small-medium enterprise is phenomenal that are shown from the
figures which is published through the (CBI) confederation of British industry. In the year
between 1998 to 2010 the average jobs created by small firms is about 2.61 million in which
only 50 employees are working. From this, 99% of SMEs come from private sector which create
60% jobs that is about total 4.9 million. The start-up firms contribute jobs total 870,000 in which
only less than 10 people are employed. It has been indicated that by create a jobs due to which
unemployment level reduced and the UK country's economy improved.
Economic growth
Small-medium enterprises are those firm who bring economic growth by continuing
serving innovate products or services to the communities. They also employ those people who
are not employed in large firms due to which it reduced poverty. It has a capability to providing
attractive products or services and trained the new workers towards creation of innovative goods
(Brännback and Carsrud, 2017). Apart from this, they are the major contributor in stabilizing the
UK economy continuing by offering a growth opportunities to the people. Several start-up firms
establish their business in UK and they also contribute towards enhancement in the economic
growth by creating a number of jobs in various sectors.
Innovation
The main contribution of small-medium sized enterprises towards the UK economy are
innovation, adaptability and employment. As per the facts and figures published through the
British industry that significantly increases the growth in mainly three areas of innovation. It
involves namely process, wider innovation and product. Apart from this, the statistics indicated
that 10% growth in sales of share that comes from new goods.
TASK 3
P5 Determine the skills, traits and characteristic of the successful entrepreneurial and how they
are different from the business manager
The characteristics of the successful entrepreneurial and other business management
plays a different role. They are those individuals who handling all types of issues in designing of
firm's product and identifying the most effective production methods (Block, Sandner and
Spiegel 2015). Thereafter, the other business manager are mainly focusing on growing their
firms and operate them efficiently. There are two successful entrepreneurs are Elizabeth and
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Tom Mercer that have a some characteristic traits and set of skills. It will be further described as
follows:-
Elizabeth Gooch Skills and Characteristics
 Adaptability and flexibility: The most significant skills that are required any successful
entrepreneurship is that an accepting the uncertainty in future as a challenge. The
Eligabeth always take any kind of risk with the time changes that made them successful
entrepreneurial. She sells her ideas by established a software through combined all data
together (Autio and Fu, 2015). She is very is confident and believed in herself as well as
more dedicated towards their work.
 Plan everything: The characteristic traits of Elizabeth Gooch is that she plan everything
in their personal and professional life. Firstly, she understands each situation of business
than after compiled all data for make a conclusion of facts through investigation. These
traits helped them when she suffered a huge loss from the EG Solution in year 2006 and
2007 that is £700,000 and £800,000 respectively.
Tom Mercer Skills and Characteristics
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 Smart work: The most vital skills that makes the Tom Mercer successful entrepreneurial
is that the way he doing work smartly. They always learn from thing by error and trial by
his own mistakes and other business manager mistakes. The entrepreneurial firstly begins
their work whatever in the grounds and gain knowledge from hard things (Curran and
Storey, 2016). From this, by using his skills and personal traits became him the most
famous in the UK market. They used characteristic traits by developed the no. 1 Bircher
muesli brand. Thereafterit also opened a number of stalls and firms beyond the London
through selling Ocado.
 High level of confidence:- The Tom Mercer becomes a successful entrepreneurial all
over the world due to its high level of confidence. It able them to cope up with the most
stressful situation in their daily work. He takes the biggest challenges through
understanding its them that allow him to grasp an opportunity immediately.
How successful entrepreneurial skills are different from business managers
From the above discussion it has been asserted that the successful entrepreneur received
an opportunity through team assembling, allocate resources from its new ideas for a business.
Increase capital by established new business (Block, Sandner and Spiegel, 2015). Therefore, the
business manager only concentrating on the operation of business in effective and efficient
manner. The entrepreneurial are generalist that must understand depply about the product
development and its design, investing, public speaking, business law etc. On the other hand, the
business management are specialist for which they focused on maintaining and growing of
business.
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P6 Assess how the aspects of entrepreneurial personality reflecting its motivation and mindset
Elizabeth Gooch and Tommy Mercer entrepreneurial personal traits and skills have a
direct influence on the mindset of an entrepreneur and its motivation. There are several
arguments on their characteristic and skills of this successful entrepreneurial to assessing the
reflection on the mindset as well as motivation. They said that profit maximization is not a
motivational factor as these successful entrepreneur focus on improvement in their existing
performance (Liñán and Fayolle, 2015). From this, it also considered on the achievement of
objectives and goals for a particular time span. The individual's mindset are differs in taking risk
some person are risk taker and other are risk adverse. In regard to this, being a successful
entrepreneur Elizabeth Gooch and Tommy Mercer both focused on risk by take them as an
opportunity. It motivates them to increase the sales and generate more revenue in the future time
period.
The uniqueness of Elizabeth Gooch entrepreneur is that she looked oversees a business
opportunity that able them in attaining the ambitious growth in UK market. It also realization on
their ideas for which they develop software is the motivational factor that capture market share
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and turnover of £1 million. On the other hand, Tom Mercer is also reflecting their personality
traits that be taken into consideration to understand their mindset and motivational factor. They
are those individual who used business ideas that put them into an action by generating a new
product that is Bircher Muesli. Now it becomes a brand in all over the world it is only possible
through interacting with the number of people while computing and get the positive feedback of
people from its sample of healthy food (Morris, 2015). The openness of this entrepreneurial
helps them to build a strong connection in business community and the external support to make
presence in the market.
TASK 4
P7 Examine how personal background and experience can hinder or foster entrepreneurship
The personal traits and skills of a successful entrepreneurship is one the best supporting
material that helps them in fostering an entrepreneurship. It provides a special guidance that
helps the students to understand the subject matter deeply (Naldi, Achtenhagen and Davidsson,
2015). They have a practical exposure that utilizing according to improve existing knowledge
that inspire all students to becomes entrepreneurs. The Elizabeth Gooch and Tom Mercer faced
various challenges that are taken as a parameter to improve the existing business conditions.
Example of two successful Entrepreneurs
Elizabeth Gooch
She is one the most successful entrepreneur that positionrd seventh in the UK and
founder of EG solutions. She started work at aged 18 in HSBC company and after that she also
worked in large firms. The experience in finance background foster her to established
consultancy company by developrd their own business. Thereafter, by using flexibility and
adaptability skills she also generated a software that foster her to becomes a successful
entrepreneurship. It hindered the Elizabeth Gooch to if she wants to develop their business in
marketing, internet and data services and home health care etc.
Tom Mercer
Tom Merce was the management consultant in the Bain & Company in London city. The
hard work and passion about work foster them to develop entrepreneurs by putting their business
ideas into an action. The strong interaction with the people at the time of sell breakfast sample to
the London's commuters helps them to develop new venture. Now their products become a no. 1
branded of Bricher Museli in UK market and available in coffee shops, supermarkets and trains
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(Schaper, 2016). It also inspires other people due to which most the workers were students done
work as a part - time job to earn money.
CONCLUSION
Summarised the above report it has been concluded that the major contributor for an
economic growth by the small-medium enterprises. It created a number of jobs that is about
totalled 75 million from this the employment rate will be increased due to which it impacts on
economic growth positively. Furthermore, it has been also analysed that it is significant for the
social economy by creating an innovative product or services that offer in UK market.
Thereafter, the report also describe the skills of successful entrepreneurial are risk taker,
passionate about work, flexibility and adaptability. Thus, these personal traits of Elisabeth Gooch
and Mercer are totally different from the business management as they focus on operating
business function effectively. It has been also identified the various type of venture
entrepreneurial in which social entrepreneurial is mainly focusing on social issues. Beside this,
the lifestyle entrepreneurial aim of sterilizing its and other personal lifestyle.
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Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship. CRC
Press.
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