Report: Entrepreneurship, Small Business Management and the Economy

This report provides a detailed analysis of entrepreneurship and small business management, covering various types of entrepreneurial ventures and their relationship to the typology of entrepreneurship. It examines the differences and similarities between entrepreneurial ventures, assesses the impact of micro and small businesses on the economy, and highlights the significance of small businesses and start-ups on the growth of the social economy. Furthermore, the report identifies the characteristics, traits, and skills of successful entrepreneurs and evaluates how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset. Finally, it explores different environmental factors that hinder or foster entrepreneurship, providing a comprehensive overview of the key elements in entrepreneurship and small business management.

Entrepreneurship and Small
Business Management
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Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Different types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship..........................................................................................................................4
P2 Differences and similarities between entrepreneurial ventures..............................................6
TASK 2............................................................................................................................................8
P3 Impact of micro and small businesses on the economy.........................................................8
P4 Significance of small businesses and start-up's on growth of social economy....................10
TASK 3..........................................................................................................................................11
P5 Characteristic, traits & skills of successful entrepreneurs....................................................11
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset................................................................................................................................14
TASK 4..........................................................................................................................................15
P7 Different environment that hinder as well as foster entrepreneurship.................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
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Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Different types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship...........................................................................................................................4
P2 Differences and similarities between entrepreneurial ventures..............................................6
TASK 2............................................................................................................................................8
P3 Impact of micro and small businesses on the economy. ........................................................8
....................................................................................................................................................11
P4 Significance of small businesses and start-up's on growth of social economy....................12
TASK 3..........................................................................................................................................13
P5 Characteristic, traits & skills of successful entrepreneurs....................................................13
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset................................................................................................................................15
TASK 4..........................................................................................................................................18
P7 Different environment that hinder as well as foster entrepreneurship..................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
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INTRODUCTION
It is very important to manage and control different activities of entrepreneur and small
business activities. This will help in performing organisational activities in more significant and
effective manner (Burns, 2016). Entrepreneur can be describe as the business which is
performing business activities in creative manner as well as providing innovative product which
is as per the need of customers. This report will include different types of entrepreneur ventures
as well as its relation to typologies of entrepreneur. In this similarities or difference of different
ventures has been analysed. Impact of micro and small business on economy is determined along
with this, importance of start up and small business for social economy. Apart form this,
characteristics, skills and traits of different successful entrepreneur is analysed and along with
this different aspects of entrepreneur personality is evaluated. In this report, background and
experience on hinder or foster of entrepreneurship is analysed.
MAIN BODY
Different types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship
Entrepreneurship can be describe as the capability or potential of individual for
performing different business activities as well as taking different financial risk in order to earn
more profits. It is important for entrepreneur to consider different factors and elements that will
lead to support in enhancing performance of organisation and attaining desired goals of business.
There are different types of entrepreneur ventures.
Large company Entrepreneurial venture: It is determine that this companies mainly
offer new product with a motive to satisfy requirements of customer and to make use of
advanced technology in an effective manner (Burns and Dewhurst, 2016). The main objective of
large entrepreneurial ventures is to expand its business operations and gain higher profits in an
effective manner. The examples of large entrepreneurial ventures is Google, Microsoft, Samsung
and so on. It is determine that such ventures make use various methods for expansion such as
Licensing, Franchise, Joint venture and so on.
Small business Entrepreneurial venture: It is analysed that small business contributes
large number of share towards the growth and development of economy. IN today's scenario,
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there are more number of small companies as compare to other entrepreneurial ventures. The
primary objectives of small ventures is to earn profit for fulfilling their basic requirements and to
improve their lining standard as well. The examples of small business ventures are grocery
stores, carpenters, consultants and so on. It is determine that small ventures contributes around
22% part in improving conditions of society and economy as well.
Social Entrepreneurial Venture: The main motive of such entrepreneurial ventures is to
enhance living standard of people prevailing in societies and fulfil their requirements in an
effective manner. Herein, the aim of developing product is to resolve social issues and fulfil
social needs as well (Ratten, 2016). For example, Safepoint Trust is a small venture which
establish non-reusable synergies through redesigning the medical tools in a proper manner. It is
analyse that Safepoint Trust till now develop more than 4 billion synergies and provide it in more
than 42 countries in order to help people and improve societies as well. Another example is
NHS, it is a public enterprise that aid in improving health of people who does not have the ability
to get treatment n a proper manner.
Scalable Entrepreneurial Venture: It is consider as those entrepreneurs who launch
business with an objective to change the world. In addition to this, they hire talented employees
and is funded by the venture capitalist. Scalable entrepreneurial venture main motive is to
analyse a suitable business model that help in gaining success and growth at marketplace.
Facebook, Instagram, online shopping are such an instances of scalable en trepreneurial ventures.
It is analysed that all the above types of entrepreneurial ventures execute operations as
well as activities which plays significant role in developing different typologies. In addition to
this, it is determine that typologies has influence on the manner of decisions taken by
entrepreneurs. The typologies of entrepreneurial ventures is given below:
Typologies of entrepreneurship ventures
It is determine that typologies is basically categorising this as per their form. In addition
to this, segmentation is rely on structure, plan form, style and many more. Below are the
typologies of entrepreneurial ventures:
Lifestyle ventures: It is analysed that such ventures get establish with an objective to
satisfy income level as they are not focus on expansion and growth as well (Laudano, Marzi and
Caputo, 2018). In addition to this, lifestyle ventures consist of limited number of employees and
is mainly situated at a single place only. Moreover, lifestyle ventures does not have any physical
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location to work. Most of this venture provide their offerings online and for this they require
mobiles, computers, laptops. This typology relates with small business entrepreneurship as their
objective is also to satisfy their basic needs and there amount of investment is small.
Survival ventures: The primary objective is to fulfil their basic requirement and enhance
their living standard in an effective manner. In addition to this, survival ventures perform
activities in order to retain in market. It is determine that such venture ensure that they earn
higher profits. This typology is associated with small business entrepreneurs as they also work
for attaining profits and survive in market for longer time period.
Managed growth ventures: It is analysed that managed growth ventures mainly focus
on enhancing their operations at global level so that they can earn higher profits. they recruit
talented and skilled employees and offer unique products as well as services in order to attain
growth and success at marketplace (Julien, 2018). It is analysed that managed growth venture
typology is related with scalable business ventures as their aim is to change the perception of
people and also hire talented staff members.
Aggressive growth ventures: It is determine that such ventures are more innovative &
make use of advanced technology that help in sustaining for longer time in market and attain
competitive advantage as well. Its main objective is to earn profits by expanding operations at
international level. This venture is related with the large business entrepreneurial ventures that
main objective is to expand business and earn higher profits as well. In addition to this, large
entrepreneurial ventures also make use of innovative technology in order to provide unique
product and service to customers.
P2 Differences and similarities between entrepreneurial ventures
Similarities:
 Social enterprises mainly emphasis on satisfying requirements of people living in
societies. Scalable entrepreneurial ventures identify customer needs which directly leads
to customer satisfaction (Welter, Baker and Wirsching, 2019). Large company
entrepreneurial ventures determine that such ventures provide goods and service with an
objective to fulfil requirements of customers so that they can sustain in market for longer
time period and earn higher profits as well.
 Social enterprises increase living standard of people and improve their conditions
prevailing in societies. It is analysed that profits earned by Scalable entrepreneurial
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ventures is contributed for growth and development of society. In Large company
entrepreneurial ventures, they contribute their share of profit in society as a CSR
activities. Another similarity which has been analysed that social enterprise follow all the laws and
regulations that is formed by government. In case of scalable entrepreneurs, It is
essential for such enterprises to grant permission from government in order to execute all
its activities and functions in a proper manner. Large entrepreneurial ventures follow
rules and policies developed by government so that activities is implemented without any
interruptions.
Differences:
 The primary motive of social enterprise is to resolve issues and fulfil requirements of
people so that their living standards is raised in an effective manner (Ferreira, 2017). On
contrary, It is analysed that scalable entrepreneurial ventures main aim is to change the
viewpoint of people & attract them to invest on their company. In addition to this, Large
ventures bring innovation in market by analysing market trends and customer
requirements as it help them to attract more number of people. It aid them to earn higher
profits and sustain in market for longer time period.
 In social enterprise, no recruitment process is going through as candidates join them a per
their interest towards welfare of societies (Collins, 2017). On the other hand, Scalable
entrepreneurial ventures hire effective and talented employees that help company in
gaining higher success and growth as well whereas in Large company entrepreneurial
ventures recruitment take place of those people who have the potential to perform all
activities and operations in an effective manner that directly leads to attainment of
objectives on given time period.
 Example of social enterprise: National Health service
Example of Scalable entrepreneurial ventures : Instagram, Facebook and so on.
Example of Large company entrepreneurial ventures: Google, Microsoft and many more.
From the above study, it is concluded that there is difference in these types of ventures
but the aim of all ventures is to earn higher profits and expand their business in an appropriate
manner. In addition to this, all such venture contribute parts towards development and growth of
societies.
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TASK 2
P3 Impact of micro and small businesses on the economy.
Small Business: It is an independent and operated company that is limited within the size
and it is analysed that its revenue is wholly based on particular industry in which it deals
(Gielnik, Zacher and Schmitt, 2017). For example, if a bakery has 10 workers then it is
undertaken as small business but in case of manufacturing industry, it is less than 500 staff
members.
Illustration 1: Development of dependent SME categories
The given graph shows the impact of small business on UK economy. Analysis and
interpretation of above graph is given below:
 It is determine that there is around 24% of contribution by small businesses in the
development and growth of economy of UK. In addition to this, it is a major portion
which impact positively on GDP of country and make United Kingdom economy on
higher reach in terms of establishment of new businesses.
 Along with this, it is identify that small companies offer more jobs that decline the
unemployment rate of country in an effective manner (Amato, 2017).
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 Moreover, increase in the number of small companies in United Kingdom arise interest of
foreign customers to invest in their country that has an advantage to UK as it can raise its
tax rates.
Micro Business: These enterprises are performing on small scale and involve less than 10
employees. In addition to this, it invest less amount of funds as their balance sheet involve a
certain or particular level of amount. Moreover, it is determine that micro business works as
independently and earn around $250,000 within a year. Plumbers, Carpenters are such an
example of micro businesses.
From the above graph, it is interpreted that micro business has around 17% of
contribution towards development as well as growth of economy. In addition to this, it gives
employment opportunities in market that decline rate of unemployment from the country. This
entrepreneurs bring innovation in market that attract other people to invest in country and raise
the economic conditions in an effective manner (Boermans and Willebrands, 2017). Moreover,
small businesses is increases in UK and its government has the opportunity to charge high tax
rates and spent them for the welfare of country and strengthen its economic conditions as well.
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Illustration 2: UK SME Data, Stats & Charts, 2020
The image above shows the significant growth in number of businesses belonging to
separate sizes and scope according to their nature and their offerings. From the graph it is evident
that micro, small and medium sized businesses are increasing with the similar pace and rendering
huge increment to the economy (Hoogendoorn, 2016). The impact of such businesses is more
job opportunities, better lifestyle, economic growth and betterment of the society along with
rapid innovation and invention taking place in country.
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Illustration 3: Essential Facts You Should Know about SMEs in the UK, 2019
The graph above shows the exact statistics of the UK about the impact SME's have over
the economy developing better jobs, rendering higher turnover and number of businesses are
regularly increasing. The figures shows that 48% of employment is provided to people by SME's
and these number are frequently increasing leading people to welfare and better lifestyles.
Moving further almost 99% of businesses in UK are belonging to SME's category proving that
the economy is supported by them and they are acting a pillars for the UK economy. At last
small businesses are contributing major 34% of turnover to the economy which is just 20% less
than those of large organisation. It is interpreted clearly that small businesses are supporting the
economy as well as bringing growth and betterment.
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P4 Significance of small businesses and start-up's on growth of social economy
Social economy: It is a mixed economy that involve features, characteristics of private as
well as public sector. In addition to this, it signifies how values, beliefs, ethics, norms changes
the behaviour of customers towards purchasing and shape their trends of buying as well. Their
main motive is to improve social conditions and welfare of societies, not to earn higher profits. in
addition to this, such organisation is performing on both national and international boundaries
and is undertaken as voluntary organisation (Klapper, Biga-Diambeidou and Lahti, 2018).
One of the example is Safepoint Trust.
Social Entrepreneurs: It is defined as a person who establishes a business with an aim to resolve
social issues and for welfare of the society. Social entrepreneurship is essential as it provides a
framework for an entity to find their own success in aiming of help others. It is determine that
such entrepreneurs are such a source of motivation.
Four pillars of social economy:
Foundations: These are non-profit corporations or charitable trust that give grants to
individual, institutions and organisations for charitable purpose such as religion, education,
culture and many more.
Mutuals: These enterprises is mainly provide social security schemes, insurance services
and many more whose main objective is to fulfil requirements of common people.
Charities: These are the community groups that support and improve the societies that
has direct impact on the growth of economy.
Associations: It is consider as last pillar of social economy that sates relationship
between individuals, groups and many more. Co-worker, friendship are such an example of
associations.
Significance of social business and Start-ups
Innovation: It is analysed that small businesses bring innovation and new ideas in market
in order to attract more number of people. In addition to this, it mainly establish those goods and
services that satisfy requirements of people and enhance their living standard (Anggadwita and
Dhewanto, 2016).
Provide Job opportunities: It is determine that small business and start-ups offer more
than 60% job opportunities in market that has positive influence of reduction of unemployment
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