Entrepreneurship Report: Small Business Management, Semester 1

This report provides a comprehensive overview of entrepreneurship, focusing on small business management and its significance. It begins with an introduction to entrepreneurship, defining entrepreneurs and their role in driving economic growth. The report then explores different types of entrepreneurial ventures, including small business, large business, social, and serial entrepreneurship, highlighting their characteristics and objectives. It further analyzes the similarities and differences between these ventures. The report also delves into the understanding of entrepreneurship in both the public and corporate sectors, emphasizing the scope, development, and growth of entrepreneurial ventures. Statistical data is interpreted to assess the impact of small and medium enterprises (SMEs) on the UK economy, illustrating their contribution to employment and economic growth. The importance of small businesses, including their ability to adapt to climate change and their potential for growth into larger corporations, is also discussed. Finally, the report touches upon the characteristics, traits, and skills of successful entrepreneurs, as well as aspects of entrepreneurial personality.

Entrepreneurship Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Entrepreneurial Ventures:.................................................................................................1
P2 Similarities and difference between entrepreneurial ventures..........................................2
M1 Understanding of entrepreneurship in public and corporate sector:................................4
D1 Scope, development and growth of venture.....................................................................4
Task 2 ..............................................................................................................................................5
P3 Interpretation and assessment of relevant data by using statistics....................................5
P4 Importance of small businesses.........................................................................................7
M2 Small, medium and large businesses makes towards economy.......................................7
D2 Small business impacts at different economic level.........................................................8
Task 3 (Covered in PPT)..................................................................................................................8
P5 Characteristics traits and skills of a successful entrepreneur............................................8
Task 4 (Covered in PPT) .................................................................................................................8
P6 Aspects of entrepreneurial personality..............................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurs are some one who start and runs a business with available resources and
planning in order to make profits. They are responsible for all risks and rewards in order to run
their business effectively. The new business ideas usually surround a new product or services
instead of using existing business ideas (Ibrahim and Mas’ud, 2016). It helps business
organisation to increase their productivity and profitability ratio by enhancing business activities.
Entrepreneurs are having different characteristics and objective for which they works and
perform all activities independently. It is good for different nation and country to support new
ideas formulate trade policy in order to increase economic growth by innovating new ideas and
thoughts. Risk are taken by person who generate new ideas and implement them in order to run
business successfully. Such report includes constructive discussion about entrepreneurship
concept that covers different entrepreneurial ventures and types of typology and importance of
small business that helps to increase the growth of nation.
Task 1
P1 Entrepreneurial Ventures:
Type of Entrepreneurship:
Small Business Entrepreneurship: When an individual drives a business organization and
all the management and control is in the hand of that particular person, the venture is known as
small business entrepreneurship (Khedhaouria, Gurău and Torrès, 2015). These types of
entrepreneurs conduct their business and perform activities at small level with the objective to
earn livelihood only. For instance, Selfridge store is the small business venture that provides
men's fashion wears.
Large Business Entrepreneurship: Large business ventures concentrate on growth of
owner's capital and perform business activities for expanding business and making profits. Such
business entrepreneurs innovate and offer new services and products by utilizing advanced
technology. In these business establishments, business offering is developed to meet with
changing needs of customers that helps to make higher profits. Apex Hotels chain is the best
example of large business ventures.
Social Business Entrepreneurship: These types of business ventures are developed by
members or groups of the society that are gathered to solve the social problems of the society
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and provide a quality lifestyle to the community or world. The main target behind this type of
entrepreneurial ventures is to make a better world by satisfying society needs. The members of
these organizations do not work for earning profit and the objective is to serve the society.
Gravity Light organization is an example of social business venture (Saeed and others, 2015).
Serial Business Entrepreneurship: When an entrepreneur creates a business idea,
develop that business and again comes up with new business idea, this type of entrepreneurship
is known as serial business entrepreneurship. Unlike typical businessmen, these type of
entrepreneurs do not focus on development of a single business instead of they create business,
give the responsibilities to others and again start a new business venture such as the Jeff Bezos
who created Amazon company in different industries.
Typologies of entrepreneurs:
Lifestyle Typology: Lifestyle entrepreneurs are those who look towards company
profitability of their personal income. These kind of business person always feel comfortable
with status by filling their all needs and wants.
Growth Typology: These type of entrepreneurs always concentrates on the growth and
development of their business. They try to reinvent or adapt new ideas and approaches to grow
their business hence they try to raise capital from the outside of the organization (Al-Dhaafri, Al-
Swidi and Yusoff, 2016).
P2 Similarities and difference between entrepreneurial ventures
The main object of entrepreneurs is to start their business by using their new ideas and
thought also create job opportunities for people. It mainly focused on profit making activity that
fulfil the needs of customers by innovating new products and services. The difference between
entrepreneurial ventures are:
Basis Social entrepreneurs Serial entrepreneurs Large entrepreneurs
Meaning In this entrepreneurship
business entrepreneurs
have capabilities to solve
the community based
problems.
In this entrepreneurs
who regularly come up
with new ideas and start
new business. They also
think about new
innovation by using all
Such type of ventures are
the business enterprises
in which entrepreneurs
have high range of
monetary resources and
run their business at
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resources. large scale.
Responsible Social entrepreneurs seek
to produce
environmentally friendly
products and make effort
to give satisfactions.
Serial entrepreneurs
produce products on
continuous basis that
helps to attached
customers.
Large entrepreneurs are
responsible for all
activities in which they
generate ideas and
delegate the
responsibilities among
employees.
Objectives To solve issues which are
associated with society by
generating innovating
solution.
To work with people
collectively and
accomplish business
objectives by
introducing new
products and services in
market.
To gain higher profits
and give higher
satisfaction to customers
by understanding
demand and wants of
people.
Key
characteristics
 Creativity
 Self confidence
 Team work
 Well being of
society.
 Proper
communication
between society
people.
 Able to think
different
 Time
management
 Strategic
relationship
 Know when to
move and how
 To generate
ideas on regular
basis.
 Creativity and
use of new
technology.
 Team work.
 Work ethics
 Risk taker
 higher
profitability
 proper
communication
etc.
Similarities between different entrepreneurial ventures
 All entrepreneurship ventures are set up to meet with needs and requirements of society
by introducing new products and services.
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 Different types of problems are faced by organisation such as financial, technological
advancement, limited resources and skilled workers which may be difficult for
organisation.
 To main motive of all entrepreneurial venture is to provide satisfaction to customers and
enhance their business.
 Business activities and risks are handled by entrepreneurs who runs their business by
solving problems.
 Job opportunities are provided by all ventures that impacts positively on each nations.
M1 Understanding of entrepreneurship in public and corporate sector:
Public sector entrepreneurship: This can be defined as the statement of progressive public
policy inaugurals that create greater economic advantages by transforming or modifying a status-
up of economic environment. In today’s economy, public sector entrepreneurship has influence
that modification or changes primarily by exploding the efficiency of knowledge networks (Yang
and Gabrielsson, 2017).
Corporate Entrepreneurship can be described as a procedure utilized to evolve new
business products, processes or services inside of the active enterprise to generate new revenue
growth and create value through entrepreneurial action and thought. This entrepreneurship sets
the circumstance for growth and innovation. It renders a method that shows the resources,
environment and processes that are needed to support, motivate and engage the organization in
entrepreneurial thinking and action.
D1 Scope, development and growth of venture
Entrepreneurial venture is dynamic in nature who innovates new ideas and thoughts in
order to develop new products and services. All venture is associated with generation of new
ideas and continuous growth of organisation that impacts on social economy by running a
business. Small enterprises have huge scope because of it does not consider high technical
changes that helps to run a business independently. Different entrepreneurial ventures have
different scope such as social and serial entrepreneurs are running their business at small level
who has small scope and they satisfy the customers by introducing products. On the other hand,
Large entrepreneurs have wider scope who enhance business activities by innovating new ideas.
They have different growth opportunities as they innovate new ideas and increase their business
activities that creates job opportunities for people and contributes in nation economy. Social
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firms are attaining growth by hiring more than 1.44 million people in which they perform social
needs by understanding their wants and supports developments of products and services that
leads entrepreneurial growth (Kautonen, van Gelderen and Fink, 2015).
Task 2
P3 Interpretation and assessment of relevant data by using statistics
Small and micro businesses comprise with the economy that helps to grow the business
activities by innovating new ideas. Small and micro enterprises are contributing in UK economy
as they are running their business by using new ideas and thoughts that helps to perform business
activities. Entrepreneurs are having different skills and talent through which they attract people
and make buying decisions. In UK, SME are playing an important role as it contributes 99.9% of
the 5.7 million business that helps to growth and development of the business. The major part of
small and micro business providing 60% jobs of all private sector out of 16.3 million. Therefore,
SME,s is crucial for economy that contributes in economic growth by providing employment
opportunities. It has been analysed that in the Brexit time, large organisation has faced many
problems like lack of financial resources, suppliers, customers, dealers, partners and other
resources that became a good advantageous for small and micro firms. SME has set up their
business and provide employees to person that helps to remove the poverty and sustain
continuous growth of business industries as well as UK economy (Pathak and Muralidharan,
2016).
In UK, SME sectors is getting support from government that helps to establish new
business by using new ideas and develop their products and services. It has been analysed that
UK productivity level are currently high than other economies as it runs business with the help of
employees that leads to continuous growth of UK economy. Innovation and expansion of small
businesses suggest the improvement in existing process that run continuous development in UK
sectors (Impact of SME on UK economy, 2019).
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Illustration 1: Impact on UK's economy, 2017
Source: Impact on UK's economy, 2017
From the given statistical data, it has interpreted that 99.3% of total businesses are
supporting UK economy by generating 48% employments that helps to remove the poverty and
make self-dependant person. Such business is contributing 33% in UK sector by paying tax
amounts and following trade policies. In different, medium size organisation 0.6% contributes
12% in generating employment and also contributing 14% in overall UK economy's turnover.
Therefore, it has been defined that, SME sectors are impacting positively on UK economy by
generating employment opportunities, increasing the living standard of people, improvements in
infrastructural facilities and increase the foreign exchanges that helps to make higher profits and
increase the economical situations (Belás and others, 2015).
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P4 Importance of small businesses
Social economy is widely affected with start-ups and small business that helps to increase
the economical standard of nation's economy. Such business is important for all countries as they
contributes in domestic or local economy by bringing innovation and growth to the society where
business has been established. For instance, small businesses runs with the help of number of
employees which helps to provide employment and by following government policies and tax
rates it contributes in stimulates economic growth. The importance of small business is defined
below:
Climate change adoption: Small business possess ability to accept the changes quickly
whether in economic climates and in organisation. As such business are customer oriented who
understand the needs of community and provides that kind of products and services that helps to
organisational development as well as social development. Small business can adopt climate
changes quickly that helps to accumulates revenues and participates in community growth.
Growing a small business to corporation: Small businesses are growing continuously
which do not always stay small. All large organisation started their business by setting a small
business who grew up to get change in large business concerns at national and international
markets. For instance, Microsoft and Amazon has started their business by using small business
idea who has change the world. Therefore, small business can grow in large corporation that
helps further to provide employment and touch the local economy by contribution that helps in
development of social economy as well as organisational growth (Zapkau and others, 2015). It is
important to run a business at small level who satisfy the customer's needs and get change in to
large organisation.
M2 Small, medium and large businesses makes towards economy
Economy of any country is based on resources such as financial, government support,
employment opportunities, contribution in tax rates, innovation and commercialisation etc.
which are important for economic growth as well as development. All businesses are
contributing differently in economy such as small businesses are providing jobs to around 10-
49 people that reduce the rate of unemployment and contributes towards growing the business as
well as UK's economy. In contrary, medium size organisation need to recruit more than 50 but
less than 500 employees that helps employees to fill their needs and contribute in social
economy. Moreover, large size businesses employs more than 500 employees that helps to gain
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high revenues and it also contributes major part of their revenues in economical growth by
innovating new ideas and thought that help in economical growth. Therefore, all businesses are
contributing in economy by creating employment opportunities and running their business
through innovating new ideas (Guo, Su and Ahlstrom, 2016).
D2 Small business impacts at different economic level
Small business has impact on different level such as:
Local level: The main focus of small business is on local communities and their needs
that helps to increase the number of sale. As small business firstly consider needs of local
residents and society in which people get job opportunities that contributes in growth of
economy at local level.
Regional level: Small business impacts at regional level such as entrepreneurs or
business concern analysis the needs of people in particular region and deliver the products and
services accordingly that helps to develop the regional area. Moreover, it pays taxes and custom
duty in order to deal with other region which helps to improve the regional economic growth.
National level: National level is wider level where people need different types of
products and services according to their different culture where small business are playing vital
role by delivering that products and services. In order to deliver product and services small
business need to take permission from government and pays tax amounts that participates in
national economic growth and development (Shirokova, Osiyevskyy and Bogatyreva, 2016).
Task 3 (Covered in PPT)
P5 Characteristics traits and skills of a successful entrepreneur
Task 4 (Covered in PPT)
P6 Aspects of entrepreneurial personality
CONCLUSION
From the report it can be concluded that a person who think different and implement such
idea by taking risk is knowns as entrepreneur. Social, small, serial and large are the types of
entrepreneurship that are running their business by innovating new ideas, helps to attract
customers and sale them products. Different traits, characteristics and skills are having in
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different entrepreneurs that look forward and increase the productivity. Family background and
experiences of any entrepreneurs impacts on their business in positive and negative manner.
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REFERENCES
Books & Journals:
Al-Dhaafri, H. S., Al-Swidi, A. K. and Yusoff, R. Z. B., 2016. The mediating role of total
quality management between the entrepreneurial orientation and the organizational
performance. The TQM Journal. 28(1). pp.89-111.
Artinger, S. and Powell, T. C., 2016. Entrepreneurial failure: Statistical and psychological
explanations. Strategic Management Journal. 37(6). pp.1047-1064.
Belás, J. and et.al, 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Guo, H., Su, Z. and Ahlstrom, D., 2016. Business model innovation: The effects of exploratory
orientation, opportunity recognition, and entrepreneurial bricolage in an emerging
economy. Asia Pacific Journal of Management. 33(2). pp.533-549.
Ibrahim, N. and Mas’ud, A., 2016. Moderating role of entrepreneurial orientation on the
relationship between entrepreneurial skills, environmental factors and entrepreneurial
intention: A PLS approach. Management Science Letters. 6(3). pp.225-236.
Kautonen, T., van Gelderen, M. and Fink, M., 2015. Robustness of the theory of planned
behavior in predicting entrepreneurial intentions and actions. Entrepreneurship Theory
and Practice. 39(3). pp.655-674.
Khedhaouria, A., Gurău, C. and Torrès, O., 2015. Creativity, self-efficacy, and small-firm
performance: the mediating role of entrepreneurial orientation. Small Business
Economics. 44(3). pp.485-504.
Pathak, S. and Muralidharan, E., 2016. Informal institutions and their comparative influences on
social and commercial entrepreneurship: The role of in‐group collectivism and
interpersonal Trust. Journal of Small Business Management. 54. pp.168-188.
Ramoglou, S. and Tsang, E. W., 2016. A realist perspective of entrepreneurship: Opportunities
as propensities. Academy of Management Review. 41(3). pp.410-434.
Saeed, S. and et.al, 2015. The role of perceived university support in the formation of students'
entrepreneurial intention. Journal of small business management. 53(4). pp.1127-1145.
Shirokova, G., Osiyevskyy, O. and Bogatyreva, K., 2016. Exploring the intention–behavior link
in student entrepreneurship: Moderating effects of individual and environmental
characteristics. European Management Journal. 34(4). pp.386-399.
Yang, M. and Gabrielsson, P., 2017. Entrepreneurial marketing of international high-tech
business-to-business new ventures: A decision-making process perspective. Industrial
Marketing Management. 64. pp.147-160.
Zapkau, F. B. and et.al, 2015. Disentangling the effect of prior entrepreneurial exposure on
entrepreneurial intention. Journal of Business Research. 68(3). pp.639-653.
Online
Impact of SME on UK economy. 2019. [Online]. Available through:
<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/>
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