Analysis of Entrepreneurial Activities and Business Management Report

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by explaining different types of entrepreneurial ventures, including serial, intrapreneur, and social entrepreneurs, along with examples. The report then discusses the impact of small businesses on economic development, highlighting similarities and dissimilarities between small business and corporate ventures. Key aspects such as growth rate, financing, and return patterns are analyzed. Furthermore, the report examines the characteristic traits and skills of successful entrepreneurs, differentiating them from other business managers and assessing entrepreneurial personality. It explores public and corporate entrepreneurship, illustrating how both can contribute to social and economic development. The report also touches upon the scope of new entrepreneurial ventures in product innovation. The report concludes with a discussion on the impact of background and experience on entrepreneurial success.

Entrepreneurship And
Small Business
Management
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Table of Contents
INTRODUCTION......................................................................................................................3
LO1 ............................................................................................................................................3
LO 2..........................................................................................................................................14
P3 Interpreting and assessing the relevant data and statistics to illustrate how micro and
small businesses impact on the economy.............................................................................14
P4 Explaining the importance of small businesses and business startups to the growth of
the social economy...............................................................................................................16
M2........................................................................................................................................17
LO 3..........................................................................................................................................18
P5 Determining the characteristic traits and skills of successful entrepreneurs that
differentiate them from that of other business managers.....................................................18
P6 Assessing the aspects of entrepreneurial personality reflecting entrepreneurial
motivation and mind-set.......................................................................................................20
M3 .......................................................................................................................................21
LO 4..........................................................................................................................................22
P7 Examining background and experience that can hinder or foster entrepreneurship.......22
M4 .......................................................................................................................................23
CONCLUSION........................................................................................................................24
References................................................................................................................................25
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INTRODUCTION
This assignment on entrepreneurship and small business management will provide a
detail overview of the entrepreneurial activities. The report starts with explaining different
types of entrepreneurial ventures along with their similarities and dissimilarities. The impact
of small businesses on the economic development of a country has also been discussed here.
Along with that the characteristic traits that are unique in entrepreneurs have been discussed
along with different line of arguments. Finally the report ends with explaining the impact of
background and previous experience on the success rate of an entrepreneur along with
specific examples from the given case study of Croft-Simon.
LO1
Slide 1
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Slide 2
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Slide 3
Entrepreneurship
Rather than working under other’s business organisation starting own business which
will support to livelihood of a particular person can be categorised as entrepreneurship. A
person who innovates ideas and thoughts for the purpose of running a new business is known
as entrepreneur. For example, Mark Zuckerberg has started his own business Facebook in
which a lot of employments are created as well as he can work independently which provides
him an opportunity to earn money as revenue (Casson and Buckley, 2010). Besides, Jeff
Bezos who is the founder and CEO of Apple also started his own business rather than
working for others (Casson and Buckley, 2010).
Types of Entrepreneur
Serial entrepreneur
An entrepreneur can be defined as serial entrepreneur when he will come
continuously with a number of different new ideas and make implementation of these ideas.
For example, Andreas von Bechtolsheim is a top rated and most successful serial
entrepreneur and he is considered as the co-founder of Sun Micro system and he was also the
co-founder Arista Network.
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Intrapreneur
An intrapreneur works for other within an organisation and he is responsible to
develop new ideas and products which will support to the growth and development of the
organisation in which he works. In this context, intrapreneur has not required to bear risk so
that he will not get the reward as like as the entrepreneur. For example, the people whoever
work for Google and Shutter stock can be considered as the intrapreneur.
Social entrepreneurs: People who works for society and poor people in order to
provide them best services for their welfare is called social entrepreneur. Such type of
entrepreneurs understand the social problems and provide them benefits. The main purpose of
social entrepreneur is to continuous growth of social economy as well as organisation. For
example, NGO, Trust , etc.
Slide 4
A wide range of entrepreneurial ventures are observed in the real business world two of them
are explained below with examples-
Small business venture
The business organisation which is started by one or more entrepreneur in order to
manage the livelihood can be defined as small business venture. Such type of venture creates
employment for only 50 people and can generate less than or equal to £10 million turnover
per year. Due to less capital and less manpower such type of venture has less growth and
expansion opportunity.
For example, grocery shop and beauty parlour as profit of such venture is used only to
manage the livelihood of the entrepreneur (Casson and Buckley, 2010).
Corporate venture
A venture can be defined as corporate venture when this venture has the capacity to
grow at a higher rate. A corporate venture might experience more than 200% to 500% growth
with the five years of starting its operation. Corporate venture has high capability to develop
and implement new business ideas due to high capital base and high profitability. Such type
of venture introduces new products every now and then which support to attract more and
more clients (Reinink, 2010).
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For example, Google can be considered as the corporate venture as it has developed
new products within its existing operation such as YouTube, Google drive and Google Ad
sense (Reinink, 2010).
Slide 5
Typology of Entrepreneurship
Salary entrepreneurship
This entrepreneurship is considered as the basic category of the entrepreneurial
venture. Such type of entrepreneurship provides less expansion opportunity as the
entrepreneur starts it in order to manage its livelihood properly (Morris et al., 2016). The
funds which are required to manage the operation of the venture are collected by the
entrepreneur from his savings. In case of survival venture the entrepreneur works as the
manager, worker and owner. Due to less capital and less profitability such entrepreneurship
are operated as small business organisation. Therefore, such typology is related with small
business ventures and entrepreneurs who runs a small business. This is run by intrapreneur
who works in an industry for the purpose of getting salary in the consideration of work done.
For example, pharmacy, beauty parlour and grocery shop are the considered as the
salary entrepreneurship (Morris et al., 2016).
Lifestyle entrepreneurship
In case of lifestyle entrepreneurship the entrepreneur searches for earning his
livelihood from the pattern in which he lead his personal and social life. Such type of
entrepreneurship is considered as the unique form of entrepreneurship as the lifestyle of the
owner is reflected in the business operation (Morris et al., 2016). Therefore, such typology is
related with serial venture and social entrepreneur who brings continuous changes in their
organisation and provide different benefits to society. In this context, the entrepreneur turns
the lifestyle in business organisation which provides them an opportunity to make profit and
expand the operation of business. Employment opportunities are also created from such type
of entrepreneurship.
For example, the profession and business of travel guide can be referred as the
lifestyle entrepreneurship. Such type of entrepreneurship is mostly location based in which
experience of the entrepreneur is considered as the major capital (Morris et al., 2016).
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Slide 6
All the entrepreneurial ventures have unique nature which support to differentiate one
venture from another. Although all entrepreneurial ventures are different from one another in
term of feature and operation, a number of similarities are also observed among them.
Similarities between small business venture and corporate venture
 Both ventures are started with the objectives to make money or earn profit
 Both ventures create employment opportunity that means contribute to solve the
unemployment problem.
 Business entrepreneurs bear financial risks at the time of introducing business and
running this.
 The main aim is provide maximum satisfaction to people and earn higher profits.
 Both ventures contribute to the social and economic development of the country by
their actions.
 All entrepreneurs, intrapreneur and social and serial entrepreneurs mainly focus on
needs and wants of customers and provide them that kinds of products and services.
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Slide 7
Dissimilarities between small business venture and corporate venture
Growth rate
Growth rate of small business venture is very low as this venture has a shortage of
capital and manpower. On the other hand, corporate venture enjoys more than 20% growth in
an annual basis due to high capital and manpower (Reinink, 2010).
Financing
In case of small business venture the capital is formed from the savings of the
entrepreneur. On the other hand, angel investors, capital market and venture capitalist are the
found providers of corporate venture.
Slide 8
Dissimilarities between small business venture and corporate venture
Return pattern
The return from the small business venture is taken as the salary of the entrepreneur
which is spent in managing the livelihood of him. In case of corporate venture the
entrepreneur expects gain from his investment and it can be in the form of capital gain or
profit (Reinink, 2010).
Investment in technology
In case of small business venture no or less investment in technology is observed. But,
a corporate venture requires high investment in technology.
Difference between types of entrepreneurship that are as explained:
Basis Serial entrepreneur Intrapreneur Social entrepreneur
Meaning This entrepreneur runs
their business
continuously by taking
all financial risk.
Business is set up by
single person who
manages capital and
uses their skills to run
This types of
entrepreneurs works for
society by
understanding their
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