Entrepreneurship: Small Business Management, Economy & Ventures

This report provides a comprehensive overview of entrepreneurship and small business management, covering various aspects such as different types of entrepreneurial ventures and their relationship with entrepreneurship typology, similarities and differences between ventures, the impact of micro and small businesses on the economy, and the importance of start-ups in fostering social economy growth. It also delves into the traits and skills that differentiate successful entrepreneurs from business managers, examines how an entrepreneur's personality reflects on their motivation and mindset, and assesses how background and experience can either promote or obstruct entrepreneurship. The report further explores the sources of entrepreneurial ideas, the protection of intellectual property rights, and the contributions of small firms to the economy at national, regional, and local levels, also considering international differences impacting business start-ups.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different type of entrepreneur ventures and in what way they are related with the typology
of entrepreneurship......................................................................................................................1
P2 Similarities and differences between different entrepreneur ventures...................................3
TASK 2............................................................................................................................................4
P3 Micro and small business impact on the economy................................................................4
P4 Importance of small business and business start-ups to the growth of social economy........6
TASK 3............................................................................................................................................8
P5 Traits and skills of successful entrepreneurs which differentiates them from business
managers.....................................................................................................................................8
P6 How entrepreneur personality reflect on entrepreneur motivation and mindset....................9
TASK 4..........................................................................................................................................10
P7 Assess how background and experience can obstruct and promote entrepreneurship........10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneur is a person who starts their business by taking all the risks and challenges
with the limited resources and capital. For starting a business every entrepreneur first starts it
with a small business and on the basis of that only they develop new ideas which will help them
in getting higher level of success(Shepherd and Zacharakis, 2018). Entrepreneurs are important
for the growth of every country because without them no business and start-ups can be
established and this will lead to low level of opportunities. But for the development of an
entrepreneur it is equally important to have certain skills so that they can know what things they
have to do and how they have to work under risky situation. Entrepreneurs are making
innovation in their small business also and this is the reason why they are becoming successful.
This report will cover types of ventures and the typology, similarities and differences between
different entrepreneurial ventures, key aspects of an entrepreneur mindset and different
environment that foster or hinder entrepreneurship.
TASK 1
P1 Different type of entrepreneur ventures and in what way they are related with the typology of
entrepreneurship
Entrepreneurs are those who starts their own business and takes all the risks and challenges
which are required to take the business on height.
Entrepreneur ventures-
 Small business entrepreneurship- Small business entrepreneurship means that business
in which the entrepreneur makes less investment on their business as they are low in
budget. Their aim is not to earn higher profits but to earn that much in which they can
spend their basic lifestyle(Dupuis and de Bruin 2018). They do not focus on building big
objectives which needs higher level of employees and machinery.
 Large company entrepreneurship- Large company entrepreneurship are those which
have made higher level of investment in their business and who focus on making new
innovations. They provide variety of products to the consumer which are unique and
differentiated from the one which exists in the market.
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 Social entrepreneurship- Social entrepreneurs are the those who develops their business
for the society by searching on the things which will suit them the best. Entrepreneurs
identify the problems which exist in the society and on the basis of that they try to bring
some change which can help the society in uplifting them. Scalable start-up entrepreneurship- This type of enterprise is unique in its way because
they start their business with a unique idea and develops those which has the ability to
make some changes (Lumpkin, Bacq and Pidduck, 2018). They search for that thing
which is not present in the market and on the basis of that they make the idea into reality.
Typologies-
 Lifestyle typology- Lifestyle entrepreneurs are those who build their business on the
basis of developing their lifestyle and they start their business on the basis of brining
some change in their life.
 Survival typology- Survival business entrepreneurs are those who wants to create the
longevity of their business in the market and on the basis of that they develop their
business objectives. Their main focus in on meeting the financial obligations so that they
can meet their long term goals. Dynamic typology- Dynamic entrepreneurs are those who have the tendency to make
some changes which will create some or the other effect in the environment. They are the
most innovative type of personality and their business strategy are made on the basis of
competitive environment.
Differences between serial entrepreneurs, entrepreneurs and owner-managers
Serial entrepreneurs Entrepreneurs Owner-managers
Serial entrepreneurs are those
who develops new and unique
business ideas and on they also
work hard on achieving those
ideas.
Entrepreneurs develops a
business idea and plans all the
activities in establishing those
business ideas into
reality(Busenitz and
Lichtenstein, 2019).
Owner managers are those
who are the owners of a
business and with that they
manages the activities of a
business also.
Entrepreneurship
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Corporate: Corporate entrepreneurs are those which takes the efforts of producing new products
and services and provides full support to the employees to act in the behaviour of an
entrepreneur.
Public: They are those entrepreneurs who always tries to make innovation in their products and
they work under the limit of rules made by the government.
P2 Similarities and differences between different entrepreneur ventures
Role and characteristics of micro, small and medium organisations
Micro- Micro enterprises are those which are very small in terms of their size and their turnover
is also less as compared with that of small and medium enterprises. Micro enterprises are very
important for providing employment opportunities to people and this helps in income generation
to people(Carmen and Enikő, 2020). They provides products and other services which are
important for the customers and that too at very reasonable and affordable rate.
Small and medium- Small and medium enterprises are those which are high in their turnover
and helps in the development of a economy. In UK around 90% of the business are of small and
medium enterprises which helps in creating value to the economy. With the development of such
type of enterprises there will be development of industry and this will help in providing wealth to
the government which will make investment on providing social services and benefits to them.
Basis Small Large Social Scalable start-
ups
Meaning This includes
starting the
business with a
small investment
in which some
might want to
take in other
higher range but
some wants to
keep it in this size
The sustainability
of these type of
business is high
because they
always makes
innovation in
their products and
their turnover rate
is also high.
Social
entrepreneurs are
those which
works for the
benefit of society.
They try to make
the development
of services or the
products which is
on the basis of
Scalable start-ups
are developed
because they have
some unique idea
which have the
ability to bring
distinct change.
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only. bringing social
change.
Objectives Their main is to
create more
employment
opportunities to
people
Large scale
enterprises main
objective is to
provide
innovative
products to
people and that
too in variety.
Their main aim is
to work for the
society and with
that they does not
focus on earning
money but with
that they want to
bring some
change in the
society.
Their main
objective is to
achieve growth
and to work in a
competitive
environment so as
to make certain
some change in
the market.
Social enterprise
Social entrepreneurs- Social entrepreneurs are those who in the beginning identifies the
problem which pertains in the society. Then on the basis of identification of problem they
develop certain solution which will be helpful for reducing that problem but the solution which
they provide is innovative.
Growth of social economy- Entrepreneurs main aim is to help the society with the issues they
are facing with that of innovative solutions. They provide those solutions only which will be
helpful in satisfying the needs of people and this helps in the growth of social economy(Alharthi
and Islam 2021).
TASK 2
P3 Micro and small business impact on the economy
Where entrepreneurial ideas come from:
Creativity and innovation: Creativity is an important aspect of a business which is considered to
be the most important one and with that it also gives certain inspiration to people to develop a
innovative solutions for achieving success. While innovation is a process of developing a unique
and distinct idea which has not been introduced earlier and is new for the people also. All the
type of business make different types of innovation so that they can gain competitive advantage.
4

Main sources of generating business and entrepreneurial ideas: Entrepreneurs can generate
their new and unique ideas for the business by learning from the past which they have done.
Every individual learns something or other in their life and on that basis they make their new
ideas(Rusliati and Mulyaningrum, 2019). The other source by which they can generate new
business idea is taking consultation from experienced people. Consultation also helps the
individual in getting new information which they might be not knowing.
How businesses protect intellectual property rights: Intellectual property can be protected with
patents and copyright which will help in providing full safety to the business. It is also important
for the business to make innovation in their products and services.
Micro and small business makes an impact on the economy
Micro and small business plays an important role in the growth of a country because with
the development of them country develops their GDP percentage as they provides lots of
opportunities to people. The foremost is creation of jobs which the small and micro business
provides to the people who are not having any jobs. With the availability of jobs people will be
having higher per capita income which will encourage them to make purchases. Micro and small
business are more into flexibility in which they develop the products that are required by the
consumers (Chernopyatov and et. al., 2018). It can be said that big businesses creates
domination in the market but on the other hand small and micro business helps in making the
flow of economy going. In the present time, micro and small business are providing around 60%
of the employment to people and have created around 2 million jobs. So for the success and
growth it is important that government provides some benefits in terms of developing more type
of such business. They have helped in making new innovations in the market and small business
are the important factor by which countries are highlighted for making new innovations and are
famous for it. When countries have to face recession then at this stage they have to face many
difficulties but with this small and micro business works in accordance with the environment in
which they cope up with such difficulties easily.
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P4 Importance of small business and business start-ups to the growth of social economy
Number and type of small firms and their contribution to the economy at national, regional
and local level-
At the beginning of 2020 the number of small business firms in UK was 5.9 million.
Small and medium sized enterprises account for 99.9% of total population (UK Small Business
Statistics, 2020). The different types of Small and medium enterprises in UK includes sole
proprietorship, partnership, corporation and limited liability company. As large portion of the
UK economy is formed by small and medium sized enterprises, they play an important role in
economic progress at local, national and regional level. Small business firms with single working
proprietor has increased steadily over the years with more that 4.57 million in the UK being
owned by single proprietor at the end of 2019 (UK SME Data, Stats & Charts, 2021).
International differences impacting upon business start-up-
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International political conditions and regulations impact growth of start-up firms. A
prominent example of this situation in UK is Brexit which has impacted the growth of small
business firms in UK. On one hand the implementation of Brexit deal has lowered taxation
which is beneficial for growth of small business while it has also created a labour shortage in
UK. This is because employees from EU face stricter restrictions after the implementation of
Brexit deal. In addition to this international economic conditions also impact small business
firms. This includes exchange rate fluctuations which impact successful internationalization of
small firms in UK.
Role of small business and start-ups-
Small and medium sized start-ups play an important role in ensuring economic
advancement at local, regional and national level in UK. At local level London hosts the most
small business organizations as the area has the most number of private business in UK.
Totalling to amount 1.1 million. The small business firms in London provide act as innovation
hub and provide sustainable solutions. These business also contribute to creation of circular
economy in London which helps enhance profitability of area. At regional level south east region
of UK has large number of small business firms which increases the turnover of the area and new
small business entrepreneurs help build sustainability and offer innovation in the region. In
addition the number of small business firms in south east region of UK total to 939 small
business per 1000 small business firms in UK (Number of small and medium enterprises (SME)
in the United Kingdom (UK) in 2019, by region (in 1000s), 2019). These small businesses
generate high amount of turnover for the South east region in UK and their profitability has
positive impact on economic development of the region. At a national level, small business firms
in UK contributed to 99.3% of total business firms in the country and 47.8% of employment
generated in the country was because of small business firms in the year 2019. Apart from this
36.8% of total turnover generated by small business firms was contributed by small business
firms in UK (Business population estimates for the UK and regions: 2019 statistical release
(HTML), 2020.). This depicts the important role of small business firms at a national level in
generating turnover and employment opportunities in UK. The business activities of small and
medium sized enterprises is crucial for the economic development of UK.
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TASK 3
P5 Traits and skills of successful entrepreneurs which differentiates them from business
managers
Tom Mercer and Elizabeth Gooch are two successful entrepreneurs which are famous worldwide
but with this they are having certain skills and traits which are responsible for making them
successful and those are discussed below-
Traits-
 Leadership qualities- Every entrepreneur has the quality of leader and they have to
develop this feature in themselves because without this they would not be able to manage
everything. In the initial point, every person has to start their business as a leader so that
they can manage the people who are working with them(Li and et. al., 2019). Tom
Mercer was having this quality of leading people and with that providing them the
motivation. Self motivated- This is the truth that no entrepreneur can become successful until and
unless they are having the quality of motivating themselves. At times when things are not
going according to the plans then at this stage people requires motivation and this is
required by an entrepreneur also. Elizabeth Gooch faced lot of things but with this she
used to keep herself motivated.
Skills-
 Vision- It is important for the entrepreneurs to have a vision that at which stage they want
to take their business. Having a vision is very important because with this only they
would be able to make their planning(Ma, Wang and Cao, 2020). Elizabeth Gooch was a
person who used to have a vision that what they want and which manner they can achieve
the things with success. Communication- Communication is the most important tool with which the person can
be judged and for becoming a successful entrepreneur it is important for them to develop
this skill. It is required because entrepreneurs meet with lots of people and they have to
plan lot of things in which Tom Mercer is the one who is good in communicating with
other people.
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Characteristics-
 Adaptability- Entrepreneurs have the capacity of adopting themselves with the changing
environment because becoming an entrepreneur will require the nature of adaptability. If
they will not adopt the nature of adopting themselves with the different and changing
environment then they would not be able to face any risk(Huang and et. al., 2020).
 Decisiveness- For achieving success, entrepreneurs have to make difficult decisions but
for that they must be having the ability to do such thing. They have to take decisions for
the things which are risky also and at that risky decisions are most important for getting
the success.
P6 How entrepreneur personality reflect on entrepreneur motivation and mindset
OCEAN model-
This model provides different type of behaviours and trait which the person is having and which
is there in entrepreneurs also.
 Openness- This characteristic of an entrepreneur depicts that they are having the quality
of having a good imagination and insight. For becoming a successful entrepreneur it is
important for them to have an insight into the future. People who are having such type of
characteristic are one who have variety of interest and are very creative(Oschlies and et.
al., 2018). Tom Mercer have this feature in which he always tries to make new things
and is ready to adopt to any new things which will help them in becoming successful.
 Conscientiousness- People with such type of characteristic are the one who have good
impulse control power and such type of people are usually into achieving goals. This
means they always focus on achieving their goals and are organized in their work the
most. This is the most important trait which is required by an entrepreneur for achieving
the success (Jones and et. al., 2018). Elizabeth Gooch is a person who is good in this as
she have the control on her impulses and works with great enthusiasm.
 Extraversion- Extraversion people are extrovert in nature where they have the capacity
of sharing their thoughts with other people and are talkative also. This nature indicates
that they are good in making social relations with people and have good network. It is
important for the entrepreneurs to develop this kind of attitude because with this they
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learn new things and develops ideas which can help them in achieving success in
business.
 Agreeableness- This trait of an individual means that they will be having the attitude of
kindness, affection and can be the one who can trusted. It is essential for the
entrepreneurs to develop this kind of behaviour because they are likely to achieve success
in this and will be more competitive in nature(Farinha, Ferreira and Nunes, 2018). For the
success it is important for the entrepreneurs to develop this kind of attitude because they
will get the support only when they will be supporting other people.
 Neuroticism- This behaviour is not liked by people because this includes having the
characteristic of moodiness behaviour and they are the one who can be emotionally in
stable. For the success by an entrepreneur this behaviour cannot lead them towards
success but can create some or the other issue for them.
TASK 4
P7 Assess how background and experience can obstruct and promote entrepreneurship
Tom Mercer
Background- Tom Mercer is the founder and owner of Moma Foods which is a breakfast of
London which has made a name in the international market. He was born in the year 1986,
London and developed the Moma Foods in the year 2006 but in the earlier stage he was not
happy with the quality of products they were providing to the people and because of this he left
his job(Ben Arfi and Hikkerova, 2021). The kitchen of Moma Foods was in South London
railway arch and he started with the business with a stall which was very small. But considering
the earlier time with this, now this brand have become the most famous and popular one.
Experience- He worked as a management consultant in London but with this he was always
focussed on developing a business idea which can be helpful to people and will help them in
achieving the success. He used to sell the products at a station and have worked hard a lot for just
selling their products and used to wake up early in the morning to the people of London. He was
just curious to make the business famous and for this he was ready to do anything.
Elizabeth Gooch
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Background- Elizabeth was working from the year 18 and she started working in HSBC Bank
but after few months only she left the job. She founded a company which was in the year 1988
but has to face lot of problems as she was thrown out of the business by the board of directors. In
the initial time the company which she founded EG solutions was earning good profits but
coming in the year of 2012 the company has to face lot of struggles and with this she has to
undergo with lot of difficulties(Rusliati and Mulyaningrum, 2019).
Experience- With the company falling apart and when she was out of her own business she
developed lots of things. But still she worked very hard and that too in a ethic way where she
take the deals with three banks. According to her the most important this is to develop the
strategy and to not identify anything which can make them failed in their career.
CONCLUSION
From the above report it can be concluded that entrepreneurs are the backbone of a
country and without them no country can make and achieve growth. The initial stage of
entrepreneurs starts with the development of a small business and they are important for as with
the development of business there will be more opportunities and community development.
Government of a country also creates new initiative so that there is new innovation and helps in
enhancing the standard of living of people. When there will be more business in the market then
people will be getting different varieties of products at reasonable prices and this will help in
growth of a economy.
(Rusliati and Mulyaningrum, 2019)
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REFERENCES
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Online
Business population estimates for the UK and regions: 2019 statistical release (HTML), 2020.
[Online] Available through <https://www.gov.uk/government/statistics/business-
population-estimates-2019/business-population-estimates-for-the-uk-and-regions-2019-
statistical-release-html>
Number of small and medium enterprises (SME) in the United Kingdom (UK) in 2019, by region
(in 1000s), 2019. [Online] Available through
<https://www.statista.com/statistics/668723/number-small-and-medium-businesses-
united-kingdom-uk/>
UK Small Business Statistics, 2020. [Online] Available through <https://www.fsb.org.uk/uk-
small-business-statistics.html>
UK SME Data, Stats & Charts, 2021. [Online] Available through
<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/>
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