Entrepreneurship and Small Business Management Report, HND Business

This report provides a comprehensive overview of entrepreneurship and its multifaceted aspects within the context of a newly created business environment. The report begins by examining various types of entrepreneurial ventures, including small business entrepreneurship, scalable start-up entrepreneurship, large company entrepreneurship, and social entrepreneurship, along with their relationship to the typology of entrepreneurship. It further explores the similarities and differences between these ventures, highlighting their core characteristics and differentiating factors. The report then assesses the significant impact of micro and small businesses on the economy, particularly in the UK, detailing their contributions to job creation, turnover, and overall economic growth. It also investigates the traits, skills, and characteristics of successful entrepreneurs, analyzing how aspects of entrepreneurial personality reflect on entrepreneurial mindset and motivation. Finally, the report examines how background and experience can hinder entrepreneurship, providing a well-rounded perspective on the challenges and opportunities within the entrepreneurial landscape. The report draws from various sources, including academic research and industry reports, to support its findings and conclusions.

ENTREPRENEURSHIP AND ITS
ASPECTS OF NEWLY CREATED
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examining Different Types of Entrepreneurial Ventures and Explanation Of How They
Related With Typology Of Entrepreneurship.............................................................................1
P2 Exploring the Similarities and Differences between Entrepreneurial Ventures....................2
TASK 2............................................................................................................................................4
P3 Illustrating Impact of Micro and Small Business on the Economy ......................................4
P.4 Importance of Contribution to Small Business and Business Start-Ups on Growth of .......6
TASK 3............................................................................................................................................8
P5 determining the traits, skills, characteristics of successful entrepreneurs..............................8
P6 Assessing how aspects of entrepreneurial personality reflects on entrepreneurial mindset
and motivation.............................................................................................................................9
TASK 4..........................................................................................................................................11
P7 Examining How Background and Experience Can Hinder Entrepreneurship ....................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
Appendices.....................................................................................................................................16

INTRODUCTION
Entrepreneurship is an aspect of business that deals with designing, developing and
running a small business. Entrepreneurship is playing a great role in business development from
the 21st century. There are some major impacts of entrepreneurship on the global economy but
still, it is an argumentative matter of fact. Introduction of entrepreneurship is designed to discuss
the roles and importance of entrepreneur in our society (Autio et al. 2014). Many countries have
been supporting entrepreneurship so that they can reduce sustainable poverty and the results
show it is actually beneficiary for economic growth. This unit will further discuss the scope of
entrepreneurship and also illustrated the barriers of business start-up. This assignment will
further discuss the balance of risk and reward of starting a new venture.
TASK 1
P1 Examining Different Types of Entrepreneurial Ventures and Explanation Of How They
Related With Typology Of Entrepreneurship
Entrepreneurial ventures are mainly focused on providing services to the mid-stage and the
early-stage organizations. They also work with troubled companies to fix their problem and they
also help the company to reinforce in their business model. The role of entrepreneurial ventures
varies from company to company. Most of the time, the entrepreneurial ventures set their goal
considering the stage and size of the organization. Entrepreneurial ventures took an active role in
strategy development, implementation of plan and networking so that the small organizations can
grow and make maximum profit (Choi and Majumdar, 2014).
Entrepreneurs are the responsible person who creates entrepreneurial ventures. The main goal of
the organization is to make maximum profit and take maximum share in the marketplace.
There are mainly four types of entrepreneurial ventures exist. These are:
Small business entrepreneurship:
Small business organizations are mainly independently owned and operate on profitable
organizations. The goal of such organization is to grow their business in a long-term business.
They are also looking to making their business more profitable and sustainable. Restaurants,
agriculture, retail stores are under small business entrepreneurship. Banks, friends or family
members are mainly capital providers of such business. They invest in the company so that the
company can make maximum fund to run their business for a long time period (Ibrahim and
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Lucky, 2014). Small companies also generate payroll taxes and they provide jobs but the number
of staffs hired by this company is comparatively small.
 Scalable start-up entrepreneurship
Scalable start-up companies are not like small business company, they make their
business in such a way so that they have the ability to change the whole world. The investors and
the employees of the company are knowledgeable enough about their goal and key
responsibilities. They tend to hire the brightest candidate for their company, as it is important
that the candidate should know about the vision and mission of the company. The main role is to
search for a repeatable and scalable business plan (Karadag, 2015).
Large company entrepreneurship
Large companies work under finite life cycle. As the large companies are facilitated with
funds from different investors, it is easy for them to grow with sustain innovation. Moreover,
they offer a large number of services and products to their customers. They have a large number
of employees. The aim of companies is to generate sustainable revenue and profit for their
company. Mainly corporate companies are under large company entrepreneurship.
Social entrepreneurship
Social good enterprises have the desires to make the world better place by providing their
services to the people. They aim to serve the maximum people by maximizing impact in a
sustainable way. This type of companies mainly dealt with global health organizations and the
companies who are working with a philanthropic mission for development of countries. The
entrepreneurs of this type of organization are capable to make improvement in life of people.
Serial Entrepreneur: It is similar with female and male entrepreneurs in context with leadership
Female Entrepreneur: The woman who is interested for the business may be the known as the
female entrepreneur. Generally the most important aspect for the business it is the perception of
the society that female are less interested towards the business but its a myth.
P2 Exploring the Similarities and Differences between Entrepreneurial Ventures
Key similarities in between the different ventures are as follows-
 Discovery and exploitation of business opportunities
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 Implementation of new procedures and marketing strategies in order to gain maximum
profit (Kuratko et al. 2015)
 Making their business sustainable and profitable
 Offering new products and services
 Satisfying the customers by making plans for improvement
 Most of the organizations are based on economic rationality
Key differences between the different types of entrepreneurial ventures are-
Social
entrepreneurship
Small business
entrepreneurship
Scalable start-up
entrepreneurship
Large company
entrepreneurship
High personal risk
and the company
faced with high
tolerance risk too
Personal risk is too
high
Personal risk is
comparatively less
than small companies
Corporate risk
Maximize impact to
make sustainable
business
Goal is to make a
long-term business
Making long-term
business plan to run
the business
Generating maximum revenue
for their company
Depends on the size
and type of the
company
Providers: bank
loans, friends, family
members
Founder of the
company,
shareholders
Revenue, subsidiaries
Global healthcare
organizations
Retail companies,
agriculture,
restaurants
One- person firms Corporations
Table 1: Key differences between the different types of entrepreneurial ventures
(Source: Kuratko, 2016)
Small business Large scale business
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Small business are working for gaining limited
and sort amount of profitability within the
business.
They have very small types of structure in
industry.
Small organisation has very few employees
Small scale of business does not have uniform
salary statute.
Large scale of organisation is working in the
industry for gaining more competitive
advantage within the business environment.
Large scale of business have broad size of
organisational structure in industry.
Large scale of organisation has numbers of
employees for its different-different
departments.
Large scale of organisation have broad areas of
salary structure by which its employees can get
sufficient amount of money.
TASK 2
P3 Illustrating Impact of Micro and Small Business on the Economy
Small businesses are driving the growth of UK economy. From creating new markets to
providing job to the job seeker, the small and micro business has major impact on UK economy.
New start-up companies are bringing new ideas that are helpful in order to survive in competitive
environment. Small business organizations are setting their goal to make their business
sustainable which indirectly helping UK economy. British enterprises are looking for new plans
and procedures to improve the economy. As SMEs thrives the business economy of UK, the
small companies are aware of it and they are continuously implementing plans and strategies to
compete with them. As per the report of a survey of 2013-2014, a record number of start-up
companies are starting their business in this academic year (Blundel et al. 2017). This trend is
still going on. The founders of the small business companies are trying to make their business
organization large. The attitude of the founder of those micro business organizations is there is
no better time to start a business in UK market. As the whole economy of UK is running in a
growing phase, the organizers are considering it the most favourable time to start the business. In
order to make a healthy economy, every country should take initiative to start more small
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business company. These business companies are helping the UK economy in making more
sustainable and healthy economy. Small and medium companies are taking a major part of UK
economy.
Micro business: This are the small and task on particular location. They have less than 10
employees to carried out certain work in the organisations.
Small business: This enterprise don't have large area but presence is bigger than micro.
Therefore, small business have 50 employees with annual turnover of 10 million pound.
Employment: Most of the small businesses are not employers- for instance; most of the traders
work independently in small business organizations. Small business is offering job over 24.3
million people of UK. More than 60% of people are employed in public sector of UK start-up
companies.
Turnover: this one is the first metrics that comes to mind while measuring economic
contribution. In the overall financial report of 2014 stated that small and medium-size business
organizations of UK had the turnover of 1.6 trillion. It is more impressive that, the small and
medium-size organizations are contributing a huge amount for economic growth (Kuratko,
2016).
Growth: Small and medium companies are contributing large counterparts of in business
growth. Innovation is an important part of growth; the companies should bring innovative ideas
and strategic plans. The strategic plans will help the companies to gain a lump sum amount of
profit. No implementation of innovative ideas will result in a loss for the company and there is a
high chance of the market may go stagnant if this situation continues for a long time. UK
government should allow the small business organizations to participate actively so that the
companies can bring ideas that are more productive in their business environment. UK economy
is blessed with the birth of 47% of start-up companies in between the year of 2009 to 2013. This
actually recovers a major part of recession of economic growth of UK. The current economic
growth of UK takes the lead to recover the past economic condition. UK economy is now much
more stable than before. UK economy has never been so strong like now. The entrepreneurs are
trying hard to make grow economic condition.
Industry: retail, manufacturing, small business companies, start-up companies and repair of
motor vehicles are taking a large part of UK industry. 46% of total revenue comes from this
sector. British core industries are also taking a vital part in the growth of economy. The small
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and medium-size firm of UK maintains a mutually symbiotic relationship to make improvement
in country's economic growth.
Private Organisation: This sort of the association possessed by little gatherings with restricted
business risk . Shareholding of such business association are the proprietor of the business who
contribute their cash to carry better come back from the association with development and
advancement. The principle reason private association to fill the hole in the public for greater
advancement and monetary development.
Sole proprietorship: A business that authoritative way had the same presence as its proprietor.
Pay and loses are burdened on the individual pay government form. The sole proprietorship is
the basic business in which one just single substance will work associations. It can not take more
reserve to set up this sort of the associations. In this way, the proprietor of the association will go
under the agreement with his or her name and he at risk for all the obligation emerge in the
associations.
Partnership: it is a formal assertion in which the association will accompany the assistance of
organization deed. All the accomplice are at risk for the offer liabilities and benefit similarly
however there are different accomplices have constrained Liability. In this way, all the
accomplice are not associated with the taking choice of the associations.
P.4 Importance of Contribution to Small Business and Business Start-Ups on Growth of
Every business venture have some contribution on the economy and social development.
The word Brexit comes from the British exit which will be the referred as the dissolved between
Great Britain and European Union
Social Economy: A small business organization may not help the economy by providing
a large amount of money like large organization but the small companies are a major contributor
in the growth of business economy. As the profit rate is not high, as like large corporations, so
the organizations have to face many problems. The competition is quite tough for the start-up
companies. The strength of local economy is depending on the start-up companies. Small
business organizations are also presenting new employment opportunities (Kuratko, 2016).
Contributions: a small business is defined as a business with 200 employees or more.
Most of the small business is Limited Liability Company. According to the report of UK small
business administration, the small business is representing 99.7 percent of UK business.
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Economic growth: small business organizations are contributing a major part in
economic growth of UK. By establishing the business, the small organizations are helping us for
economic growth. The small organizations are also providing opportunities to the unemployed.
As the competition is tough now, opportunities to work in Start-up Company are helpful. The
business organizations are attracting their customers by inventing new products and
implementing new ideas in their business plan. Many large companies are depending on the
start-up companies to do their business functions.
Adaptability: the small business organizations respond quickly to the change of
economic climate. As the small business is mostly customer oriented and run under individual
ownership, this is easy for them to adopt the changes in economic climate. The customers tend to
be loyal to the start-up companies even if the company is running through critical economic
crisis. Profit made by small companies are less than the larger corporations are, as a result, they
have less to lose in the time of economic crisis.
Future growth: small business also tries to grow their business so that they can
participate in national and international marketplace. Small business organizations are taking
decision from their entrepreneurs for further development. The entrepreneurs are designing new
model and plans for the company. The employees are implementing the plan in their business
environment. The small business organizations tend to work for the same community even after
moving into large business. Growing into large business organization enable more opportunities
for the job seekers. The local people get chance of employment and this stimulates the local
economy of UK.
School and government offices: the small business helps their community by providing money
and their services. They work for the people of their community. In case a small business is
generating high level of revenue in profit that means the company is paying higher taxes to the
government. The money comes from local taxes is used for development of schools, fire
departments.
Basis small-business Start ups
Economic growth It contributes a vast part in the
advancement of economy of
nation by making different
Start up likewise assume
significant part in the
development of economy.
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courses, for example, work
creation, work business and so
forth.
Inventive and innovative
thought, is path through which
they contribute in the economy
of country
Economic and social
development
It works everywhere scale, this
assistance it in contributing in
substantial number.
It work for the improvement of
a specific locale.
FIGURE 1: Importance of small business in economic growth
(Source: Kuratko, 2016)
It has been seen that, small businesses has been created a broad changes in economic
growth of the country. It has been seen that, after Brexit, it has been made great impact on
increment in opportunities to gaining growth in industry. Many of new start-ups and small
business has been getting proper opportunities to getting sufficient growth in market. Apart from
it, the numbers of SMEs increasing frequently year by year in the UK, so there employment
opportunities also increasing frequently because of increment in the numbers of small businesses
in industry in relevant manner. Because of raising more small business in the nation, the
government of the nation is collecting more revenue, taxes, foreign exchange gains etc. so all
these are major factors which is making contribution in proper improvement in economic growth
of the UK economy.
TASK 3
P5 determining the traits, skills, characteristics of successful entrepreneurs
Characteristic
Constant Entrepreneur ought to be tenacious to end up effective and build up their business. This
quality improves them give execution and makes them more proficient. They should set one
objective or mission to be accomplished and ought to be constant towards it . Walt Disney and Jk
Rowling both had diverse dreams and mission yet both were tenacious towards their objectives.
This trademark made them to accomplish their points viably.
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Fearlessness Entrepreneur ought to have self-assurance for accomplishing their objectives and
targets in exceptionally successful way. This normal for business visionary influences them to
become further and productively. Walt Disney and Jk Rowling both have fearlessness to end up
effective. They never loosed trust and proceeded with their adventure towards their objective
which influenced them to develop and end up fruitful.
Skill:
Initiative skills: Entrepreneurs ought to have administration abilities which drives them to deal
with their workers. With these authority aptitudes they can successfully lead the representatives
and their working. Walt Disney and Jk Rowling both had initiative abilities which made them
effectively oversee and lead their workers. They are extremely productive pioneers.
Development skills: Entrepreneurs have imaginative abilities which makes them effective. They
contrast from different supervisors by their inventive aptitudes. Walt Disney and Jk Rowling
both were creative in their work. This expertise of their made them effective in their separate
fields.
Traits:
Energy for work: Entrepreneurs are enthusiastic towards their works which makes them to
accomplish their points and thought processes. This improves their aptitudes by which they give
better execution. Having energy to work will make them more proficient. Walt Disney and Jk
Rowling both had quality of being enthusiastic. They were extremely enthusiastic towards their
work. This quality of theirs made them effective.
Risk: Entrepreneurs should go out on a limb in their without getting apprehensive of results.
Dangers influences them to discover some new information which will be beneficial to them
later on. Going for broke can help them to gain benefits and be fruitful. Walt Disney and Jk
Rowling both were valiant while going out on a limb which had given them brings about the type
of progress. Characteristic of going for broke in the business by the business people influences
them to become further and guarantees advancement for them.
P6 Assessing how aspects of entrepreneurial personality reflects on entrepreneurial mindset and
motivation
Clearly, it is defined that there is a lot of influencing factors which should reflect on
entrepreneurial mindset and motivation, such as-
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 Agreeable: This attribute of business person demonstrates their decency. They ought to
be liberal and kind. This nature of their makes them to have more beneficial relations
with workers. This spurs the workers and changes their negative outlook. Walt Disney
and Jk Rowling both were caring and influenced their workers to feel sheltered and
secure. This had expanded their productivity and viability. Business people with this
individual characteristic makes them fruitful. This additionally causes them to propel
their representatives (Suddaby, Bruton and Si, 2015). Attitude of business person changes
by this quality and they all the more successfully deals with their representatives with
warmth.
 Neuroticism-This is the enthusiastic attribute. Business visionary with higher measure of
neuroticism will set aside opportunity to be fruitful. Individual with bring down measure
of neuroticism will be more fruitful and at a quicker rate. Business visionary ought to
have some control over his enthusiastic state. They have to know the measure which will
keep them in charge and influence them to be steady. Walt Disney and Jk Rowling both
had attribute to control their neuroticism which helped them to take less pressure. This
entrepreneurial identity causes the business visionary to work proficiently and give better
execution.
 Extraversion-This identity characteristic of business person makes them more social. By
this quality they can discover some new information. Gaining some new useful
knowledge is constantly great. This likewise make business visionary productively
convey and interface with others. Being socially dynamic builds the vitality of individual
to work . Walt Disney and Jk Rowling both had been socially dynamic and collaborated
with others which made them to learn others. This additionally helped them to get roused
and work viably.
 Openness: This identity characteristic makes the business visionary daring. By this
quality individual tend to go out on a limb without getting apprehensive by it. They can
bring numerous imaginative and innovative thoughts in their business. This sort of people
don't get dreaded by emerging of the issues they fearlessly confront them and attempt to
take care of the issue successfully. Walt Disney and Jk Rowling both were exceptionally
open and bold. They generally went out on a limb which made them to be effective.
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