Report: Entrepreneurship and Small Business Management - [Course Code]

This report delves into the realms of entrepreneurship and small business management, examining various types of entrepreneurial ventures and their relationship to entrepreneurship typologies. It differentiates between micro, small, and medium-sized businesses, highlighting their distinct char...Read More

ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTROCUCTION............................................................................................................................................3
LO1..............................................................................................................................................................3
P1) Types of business entrepreneurial ventures and their relation to typology of entrepreneurship.3
LO2..............................................................................................................................................................8
P3) Impact of micro and small business on economy........................................................................8
P4) Importance of small businesses and startups to the growth of social economy. ......................9
LO3............................................................................................................................................................11
P5) Characteristics and skills of a successful entrepreneur.............................................................11
P6) How entrepreneurial personality reflect its mindset and motivation.......................................14
LO4............................................................................................................................................................15
P7) how background hinder to foster the entrepreneurship...........................................................15
CONCLUSION.............................................................................................................................................16
REFERENCES..............................................................................................................................................17

INTROCUCTION
Entrepreneurship refers the procedure of set up business and takes financial risk in the
hope of generate profit. Those people who set up such kind business by taking risk known as
entrepreneur. It is dynamic activities of creating and developing innovative things so that enables
to give the value of the business. It is a source of economic growth because it creates new
products and their services to improve standard of living of the business. Small business
management mentions the process of running organization operation which is utilized by
entrepreneur. It helps entrepreneur to understand how to align business activities and employees,
acquire funding resources and implements appropriate decision so that business gets profit.
Small business plays significant role for entrepreneur because it offers opportunity to create
creativity and recruits job for those people who posses talent but doesn't have platformed to
prove themselves. Both entrepreneurship and small business gives contribution in local economy
growth. In this report will cover types of business entrepreneurial ventures and their relation with
entrepreneurship typology. It will cover significance of small business and their contribution in
country ecoomy.
LO1
P1) Types of business entrepreneurial ventures and their relation to typology of entrepreneurship.
Difference between Medium, small and micro business:
Medium-business Small-business Micro business
These are the businesses up to
250 employees and may be
owned by family and are
managed by the virtue of their
size. Also, in this business
ownership is separated from
the management.
These are the business with
annual sale of I a million with
less than 500 employees
working in an organization.
These are the companies with
annual sale as well as assets
that are valued less than
250,000 pounds per year with
employees less than 5.
The only similarity between these types of organizations is that their aim is profitability
and wants to grow and expand continuously.

Entrepreneur is a business individual who posses potential to initiate new business along
with sufficient resources and liable for profit and loss in business venture. Entrepreneurial
ventures are organizations which access on offers advisory or innovative services so that
organization gets level in business market. Entrepreneurial ventures are-
Small businesses: It is independent business which operate for profit gaining. It runs self
independently. The main goal of the small business to make business sustainable for long term so
that gets high profitability in business. The funding sources of the business are bank loans, micro
loans and personal funds. It can create payroll taxes and job recruitment but doesn't recruit larger
employer. Such kind business offers product and services to customers but on small scale not in
large scale. For example Restaurant construction farms etc.
Scalable startup business: it is high growth technology company which posses potential to
innovate emerging market or lead drastic change in existing business market by offering
innovative technology based products and their services. The main goal of the organization to
generate high revenue and build power of brand. It plays significant role to reducing employment
by recruiting job opportunity for those employees who have talent to do creativity at workplace.
Social business sector: it is charitable type of organization which has main goal to offer social
services to peoples. Such kind organization seeks for maximizing profit and influences benefits
for society and the environment. The funding source of the business are social program, public
and private sector. Thus type organization posses potential for creating social impact and
develops life. There is an example of Oxfam organization. It is confederation of 19th independent
charitable organization. It focuses on reducing of world poverty and improve their life. It is
international and non-governmental organization in which have non-profitable group with
excessive collection of principles.
Private sector: It is second stage company which operates independently for private gain. Thus
type organization has potential to become governing in their sector. The main goal of the
business to expand growth of the business by promoting products and their services, seeking
emerging market as result sustainable profit long term. There is an example of Tesco to
understand public sector. It is a public sector type company which has main goal to generate high
revenue by meeting customers expectation. It is retailing company in which posses 450.000

employees. It offers wide variety products such as hypermarket, supermarket, superstore and
convenience shop. 6.800 shops of Tesco operates across the world and net income approx £1,320
million. Organization gives value to customers by offering standard quality products and their
services.
Public sector: It is part of country economy which is controlled and managed by government.
The main goal of the sector to offers services to public and generates income. To understand the
sector there is an example of British petroleum company. It is public limited type of the company
and headquarters in London, England. It offers various products such as petroleum, natural gas,
motor fuels, aviation fuels and petrochemicals by service station across the world. In this
organization approx 73,000 employees gives services to public.
Entrepreneurship typology refers the concept which is utilized to elaborate categorization rather
than foundation. There are Different types of typologies which are as follows-
Social typology- It is main typology of entrepreneurship which has main goal to offer social
benefits to the society and provides services for public rather than making private gain for itself.
Social typology is specially designed to provide services public, that's why it is known as non-
profit typology.
Lifestyle typology- It is freelancer type of business which operates by independent individual
person. The main aim of the lifestyle typology is to offers high standard quality products and
their services to the customers with current fashion. The main goal to develop lifestyle of
customers. Such kind lifestyle typologies enables to generate high income from customers by
offering standard quality products and their services and takes high prices of the products from
customers.
P2) Differences and similarities between entrepreneur ventures.
The comparison between different entrepreneur ventures are as follows-
Scalable business
venture
Small business
venture
Public sector Private sector
Objective Scalable business Small business Public sector Private sector

venture focuses on
providing high
quality products
and services. The
aim is to earn
maximum profit
from business
activities. The
venture focuses on
growth rather than
compromising
with the prices
(Ayandibu and
Houghton, 2017).
venture aim is to
earn minimum
amount of profit
by which they can
survive in the
market. The
purpose is not to
raise high amount
of profits or any
goal term goal.
The venture do
business activities
at very less profit
margins as the
purpose is to
survive in the
market. .
ventures focuses on
providing high
quality products to
customers at
reasonable prices.
Public sector
activities are
governed by the
guidance of
governed
(Castrogiovanni,
2018). The sector
do business
activities for social
purposes though the
aim is to earn profit
but it gives more
focuses more on
social activities.
ventures are run by
private individuals.
The aim is to earn
high amount of
profits by providing
premium quality
products and
services to
consumers by
charging high
prices. There is no
involvement of
government in
private sector.
Market size The market size
for aggressive
growth venture is
not very large. As
the prices charged
are high so there is
less customer base
(Fayolle and et.al.,
2017).
The market size in
survival growth
venture is very
small as business
activities are done
just to survive in
the market.
The market size of
public sector is very
large. As the
venture provides
high quality
products as
reasonable prices so
there is larger
customer base
(Kuratko and
Morris, 2018).
The market size for
private venture is
large but not very
large. As the
business focuses on
providing quality
products and
services to
consumers so those
people priority is
quality pays higher

prices and make
purchases.
Structure The structure of
this venture is
functional,
product and
market oriented.
As the business
focuses on growth
(Dunne and et.al.,
2016).
The structure of
this type of
venture is little to
none. No specific
structures is there
for doing business
activities.
The structure of
public venture is
medium not very
large as business do
activities for social
welfare.
The structure of
private sector is
large and very
advance. As
business operates in
all ares with
adequate return on
investment (Fayolle
and et.al., 2017).
Economic
motives
The economic
motives of this
venture is wealth
creation. Venture
focus on growth
by providing
premium quality
services.
The economic
motive of this
venture is to just
earn that much
living by which
they can feed their
family
members(Dunne
and et.al., 2016).
The motive of
public venture is to
provide social
benefits to
customers by
offering high quality
products and
services at
reasonable prices .
The economic
motive of private
sector is to create
wealth and
goodwill in the
market by offering
good quality
products.
Though there are many differences between types of entrepreneur ventures but there are
many similarities also. All the entrepreneurial ventures required finance for carrying out business
activities as without enough funds the business operations can not be carried out. All business
makes financial and working policies for doing business operations. Another similarity between
all the ventures is that all focus on satisfying their customers by offering products and services
according to their needs and requirement. All ventures works for generating profits by doing
business operations though there is difference, that some aims at earning high amount of profits
and some aims to earns minimum amount of profit (Castrogiovanni, 2018).

LO2
P3) Impact of micro and small business on economy
Small-medium enterprises plays significant role in economic growth. SME refers the
business in which posses more than 250 employees', comprises 60% private job sector in the
united state. It is important for UK economies because it raises GDP of UK per annul. In 2019,
small business find approx 5.8million in UK that means 3.5% private business population
increases per year. In 2016, approx 5.4 million small business are established in UK. While in
2018 small business ratio enhances approx 5.7 million ( 99.9%) in UK. Even SME reduces
employment by recruiting job opportunity for those who doesn't have job. It enhances
employment turnover approx 3/5th. The total employment approx 16.6 million means 60% in
small business. There is a graph to understand small business contribution in economy and
employment.
Illustration 1: Share of business in UK by size
On other hand micro business also plays crucial role in UK economy. Micro business mentions
the business in which 0-9 employees offers services in company. It is small scale business which
influences UK economy approx 5.6 million that indicates 96% part of micro business in total
business in 2019. while in 2018 micro businesses are 5.4 million that's indicate 96% contribution
of all business.
In medium businesses, amounting 250 people is being appointed in a business whereas
maximum 9 people agaSME compromises a large part of the UK economy and boosting SME

productivity growth has an significant impact on overall UK productivity. There were 5.4
millions SMEs in UK in 2016, which was over 99% of all businesses. Micro businesses have 0-9
employees. There were 5.3 million m
icro businesses in
the UK in 2016, accounting for 96% of the businesses as shown in figure below (Jones and et.al.,
2019). inst the micro business, Thus this resulted in limited employment opportunities on 15%.
But the fact is that the no. of businesses are increasing which results in generating more
opportunities for young people (Castrogiovanni, 2018).
Revenue generated by small businesses has a great impact over the economy of UK whereas
medium enterprises does not have that much of significant influence. About 99% of the total
business in UK comprises small and medium businesses. Currently there is a high competition
among the industries in UK economy.
P4) Importance of small businesses and startups to the growth of social economy.
Employment opportunities- Small businesses are important for employment because it
provides golden opportunity to those peoples who don't have platformed to create creativity and
generate profit for them. That's why they recruit job opportunity for employees and provides
platform to innovate new services or product. Due to small business contribution, country
enables to reduce unemployment ratio. Small business helps person to initiate new business and
provides innovative services to customers so that they get the values of their money. On other
hand SME enables to generate high income in company.

Improving economic condition- Small scale business provides contribution in country's
economy. Small scale or startup stimulated business offers opportunity talented person who can
lead creativity in product or services. Even government also offers skilled and performance
development classes to people so that they improve their skills and create creativity in products,
technology and their service. The main goal to promote such kind business to offers high
standard quality services or products to public and customers gives high prices on product
consuming. Thus, it yields high revenue continuously and improves economical condition of
country. Small business brings less revenue who=ile stimulated business generates high revenue.
it gives significant impact on local economy because both type business have to pay different
taxes which directly improves local economical condition.
Cultural diversity- New startup stimulated business and small business are major source for
introducing creativity in product and services. Both type business helps to improve cultural
diversity by recruiting different types of employee who belong to different countries along with
different culture. The main goal of the culture diversity to improve creativity by inviting
different cultural employee's and listen their views. It can lead creativity in products and their
services. Diversity in culture leads different talent at single place and enables to give value each
type of customers that directly generates high revenue in company. Cultural diversity maintains
well-being of employee at workplace. Different cultural employees have to pay tax and consume
services which directly improves social economy of country.
Innovative- Startup stimulated business and small business are specially known as innovators
because they create creativity in products and their services so that customers gets the best
quality products and gets value of their money. On other hand small business enable to yields
high revenue by getting high prices on products or their services. Thus, kind businesses attract
talent employees by offering high incentives and additional services so that they offer their
services by resolving existing issues relevant product and their services. Stimulated business are
innovative nature and always focuses on creativity in technologies and their services so that
people get unique product and takes benefits by consuming. Innovation gives significant role to
improve economical condition of country. Such kind businesses have to pay high taxes for taking
patent of any product or formula or services. Thus generates social economy and develops
country GDP scale.

LO3
P5) Characteristics and skills of a successful entrepreneurs.
The two most successful entrepreneurs are Peter Jones and Richard Brandon and their
characteristics and skills are as follows-
Characteristics of Peter Jones-
 Peter Jones is a self-confident entrepreneur. These characteristics help him in this way
that he takes all the decision on its own without the help of any other person.
 The entrepreneur is goal oriented and do all business activities according to the goal. He
knows very well that things which distracts him from the goals he don't do that and keeps
himself goal oriented.
 Peter Jones is creative entrepreneur and have innovative ideas of doing work which helps
him in leading the business operations. He creates and makes innovative plans which
helps the business in facing competition also (Yan and Yan, 2016).
 Peter Jones is passionate and have high determination towards the work which helps in
making business successful. Entrepreneur is passionate towards work and do work more
seriously and willingly from the heart.
Skills of Peter Jones-
 Peter Jones has a great time management skills. Entrepreneur manages all the activities of
business on time. Peter Jones exercise conscious control of time spend on different
activities to increase effectiveness, efficiency and productivity.
 Peter Jones has great communication skills. Through this skill entrepreneur successfully
maintains healthy relations with the employees, as when relations among employees are
good the working environment will be good and this results in less conflicts in
organization (Volery and Mazzarol, 2015).

 Peter Jones is a self motivated entrepreneur. These skills make him successful as without
self motivation he can not provide motivation to workers which is must for becoming
successful.
Characteristics of Richard Branson-
 Richard Branson is an responsible entrepreneur. He understands his role very well and
takes responsibility. Richard Branson takes all the responsibilities of business being an
entrepreneur which results in greater productivity.
 Richard Branson is persistent ie, never give up too early. This characteristics differentiate
them from other business managers as any difficult situation comes in business he solves
on their own without giving up. Thus this is beneficial for business (Staniewski, 2016).
 Richard Branson action oriented as he takes quick actions in business. This
characteristics is good for organization's productivity as actions are taken in business
without any delay. Richard Branson has a talent that he takes immediate actions
according to the situation.
 Richard Branson is an risk taker entrepreneur. He take high risk in businesses and have
capability to minimize the risk by thoroughly researching business concepts, industry
and market conditions.
Skills of Richard Branson -
 Richard Branson has great problem solving skill, which help the business in this way that
if any problem arises he solves them in an efficient and desired way. As when the
problems are solved on time the business activities will not be delayed resulting in greater
output within lesser time (Saleem, 2017).
 Richard Branson has a great decision-making skills which makes him different from
other entrepreneurs. By good decision making skills entrepreneur takes decision which is
best suitable according to situation. When good decision-making is done in business
more productivity is generated resulting to higher business success.

 Richard Branson has an ability to learn new things. Entrepreneur keeps on learning new
things and seeking knowledge from different sources which help him in making new
business polices and facing competitive situation. Learning keeps administrator updated
with the changes in technology, evolution of industry, sales process and other process.
Big Five Traits Entrepreneurs Managers
Openness Entrepreneurs like to see
people of different type and
are quite open-minded in
behavior. Also, entrepreneurs
are very much curious,
imaginative as well as
nontraditional.
On the other hand managers
are low scorers as they do not
want to get exposed to other
systems and also develops
narrow interests (Saleem,
2017).
Conscientiousness Successful entrepreneurs are
always conscientious and are
always organized and
hardworking in nature
(Staniewski, 2016). They are
self disciplined, preserving,
and punctual.
Managers may be sometimes
careless and may be unreliable
and does not put extra efforts
to the task that are assigned to
them.
Extroversion Successful entrepreneur are
always extrovert and they love
to mingle with others. They
are always optimistic in nature
and fun-loving.
Management may or may not
be extrovert in nature. They
are generally pessimistic in
nature as they have to see
negative side of decisions
made.
Agreeableness Successful entrepreneurs listen
and agree with others about
various aspects of the business
and choose the best option for
the business (Ratten, 2016).
Managers may or may not
agree to others and generally
gives orders which needs to be
followed by other.
Neuroticism Entrepreneur does not get
irritated with other and always
prefers to remain calm in the
Managers constantly keep on
worrying about little things

situation. and may be insecure.
P6) How entrepreneurial personality reflect its mindset and motivation
Peter Jones has autocratic personality and its all decision himself without taking the help
of any other person, such autocratic personality help the Peter Jones become a self-confident
because of which Peter Jones motivate himself and take the decision and have control over the
mindset and manage all the business activity as it has good in management skill and try to cover
all the activities within the time by keeping the objective in the mind to achieve. And make
control over the time management and work so that work can be complete with in time and side
by side it increases the work efficiency and effectiveness(Saleem, 2017). It also has the good
communication skill which help to make good relation with the other person, so that it helps him
to reduce the conflict in the workplace as it can easily solve the problem by motivating the
employees as it have good relation with the employees. It brings confident in him and reflect its
mindset to work with more passionate work, and have determination towards the work. It is an
goal oriented that reflect his mind according to the achievement of the objective of business, so
that time to time motivate himself because entrepreneur know very well about the market
condition where many thinks can divert its mind from achieving the goal. So always fix the
mindset to achieve the goal. And motivate himself whenever any critical situation which may
demotivate it(Staniewski, 2016).
Richard Bronson is well responsible person and can understand his work very well as an
entrepreneur, know very well how to operate the businesses to achieve the business goal which
make it more confident and never postpone work on next day and try to do it on the same day. It
makes his mindset more active towards the work to complete the task with in time. Try to solve
the problem himself without taking the help of others which motivate himself to become more
responsible towards the work. Richard Branson is a highly risky taker and have the ability to
reduce the risk which reflect mindset to become stronger and bring confidence in him and also it
is an quick in taking action without delay which make it more experience by facing all the
situation issues and make him more motivate for the further. If any situation will come in future
it can ready to face the problem because of a previous experience (Volery and Mazzarol, 2015).
Also, Richard has an ability to learn the new things which help in bring positive thoughts in his

mind that is very helpful for the success of the business by making new polices of business to
compete with other entrepreneur in the business market.
LO4
P7) how background hinder to foster the entrepreneurship
Peter Jones is famous British entrepreneur and was born in 1966. it is television
personality having an interest in media phones, retail, television, property and retail. In early 16
year old he set up business and a personal computer under own brand. But unluckily he lost of
£200,000 after selling to IBM company. And he failed in business when it was in twenty. He
decided to give up 3 bedroom home and personal car and return to his parents. Again he
motivates himself and decided to open a cocktail bar which is based on Cruise. After a
acquisition he set a next phones in international group in 1998. And in 2005 he joins with a Theo
Paphities where they brought a gift experience company, under this ownership again he
collapsed due to some region. After failing more than two times it not looses the hope and
founded other business in 2004 and 2008, a became an online retailer in the sale of champagne
and wineto coperate Celsius and clients(Yan and Yan, 2016). And in 2009 he opened a Peter
Jones Enterprise Academy (PJEA) where it started to teach entrepreneur capability in UK. After
word, it raised his busness throughout the UK including the Manchester, Sheffield and many
more places.In november 2013 reported that its enterprise academy was opened in Leamington
by other college. This academy offer the BTEC level 3 enterprise. After facing so much struggle
in his life, he finally own TV peoduction company which called Peter Jones TV and also become
an owner and CEO Jessops in UK.
Richard Brandon is one of the British businessman and was born in 1950 in London. He
is investor Philanthropist and author. He founded virgin group in 1970 which control over more
than 400 enterprises in various field. He expressed his desire at a young age He started his first
business at age of 16 magazines called student. And in 1970 set up email order records business
records. Where he open the chain of Virgin stores and record stores and later known Virgin
Magastores in 1972. His Virgin records grew faster in 1980. After that started the Airline and
expand the business of Virgin music label(Hatten, 2015). In 2004 Founded a spaceflight
corporation which is based at Mojava air and Space port and design for a space tourism And

finally in 2007 he placed in Time of 100 most Influential people in list of World. Like wise his
background hinder Richard as Entrepreneurship.
CONCLUSION
It can be concluded entrepreneurship and small business management. Different types of
entrepreneurial ventures and the relation with typology entrepreneurship has been concluded in
the report. Similarities and the differences between entrepreneurial ventures can be concluded in
report. This report can be summarized interpret and focuses relevant data and statistical for
illustrating micro and small business impact on the country economy. The significance of small
business and stimulated business for growing of social economy can be summarized. The
characteristic traits and skills of successful entrepreneur which creates differentiation them from
other business manager has been concluded. In this report has been summarized entrepreneurial
aspects' personality reflects entrepreneurial motivation and mindset.

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