Entrepreneurship & Small Business Management: Economy Impact

This report provides an overview of entrepreneurship and small business management, covering various types of entrepreneurial ventures such as scalable start-ups, small businesses, large company entrepreneurship, and social entrepreneurship, and their relation with topologies like women entrepreneurship, trading entrepreneurship, business entrepreneurship, industrial entrepreneurship, skeptical entrepreneurship, research entrepreneurship and determined entrepreneurship. It highlights the similarities and differences between these ventures, the impact of small businesses and micro-businesses on the economy in terms of GDP, employment, exports, and competitiveness, and their contribution to the growth of the social economy. The report also discusses the characteristics, traits, and skills of successful entrepreneurs and how entrepreneurial personality reflects motivation and mindset, concluding with an examination of how background and experience can either hinder or foster entrepreneurship. Desklib provides access to this and many other solved assignments for students.

Entrepreneurship and Small
Business Managements

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Different types of entrepreneurial ventures and their relation with topologies.....................4
P2 Similarities and differences between entrepreneurial ventures.............................................5
TASK 2............................................................................................................................................7
P3 impact of small-business and micro businesses on the economy..........................................7
P4 contribution of the small business and start ups to the growth of the social economy..........8
TASK 3............................................................................................................................................9
P5 Characteristic, traits and skills of successful entrepreneurs...................................................9
P6 how will the entrepreneurial personality reflect entrepreneurial motivation and mind set. 10
TASK 4..........................................................................................................................................11
P7 Background and experience can hider or foster entrepreneurship.......................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The performance of different activities by different people is the main concept behind
entrepreneurship. For the purpose of making profit the capacity and willingness to organise,
develop and manage the venture and to also take into consideration the risk that are associated
with it is entrepreneurship (Alsos, Carter and Ljunggren, 2011). If someone starts a new business
than that will be called as entrepreneurship. In the below mentioned report various types of
entrepreneurship and its related aspects will be discussed. Also how a entrepreneurship and small
business are managed and what all steps are required in that process will be also taken into
consideration in this report.
TASK 1
P1 Different types of entrepreneurial ventures and their relation with topologies.
There are basically four types of entrepreneurial ventures which are discussed below :-
1. scalable Start-up entrepreneurship : they can be defined as those entrepreneurship
which are required to be started and for that purpose it is needed that new and innovative

ideas should be introduced. The risk that will be involved should be evaluated in order to
identify the profitability of it.
2. Small-business entrepreneurship : these are those businesses that can be established
even by a single person on his own (Awogbenle and Iwuamadi, 2010). They will include
grocery stores, travel agents, plumbers, etc. in this either the local workers or the family
members are hired and there is a very less amount of profit that can be made by it.
3. Large company entrepreneurship : these are those companies that have a definite life
cycle. By undertaking various aspects such as innovation, offering of new products they
can ensure their growth. There are various changes such as introduction of new
technology or change in customer taste that keep on occuring in the market so they are
required to be considered in order to reach at new heights and make the business even
more big.
4. Social entrepreneurship : In this type of entrepreneurship the main focus is kept on
preparation of such products that will prove to be helpful in solving social problems and
meeting the needs of the society. In these the main aim is to serve the society rather than
profit earning.
The different typology of entrepreneurship :-
 women entrepreneur : They are those that are formed and controlled by the women.
Women in this are provided with the interest at minimum rate.
 Trading entrepreneur : these consider only the trading activities and the manufacturing
activities are not undertaken by them (Barringer, 2012). Here the potential markets are
identified by which the demand will be created by creating the interest for the product
among the buyers.
 Business entrepreneur : they covers those entrepreneur that are created by an individual
on the basis of the idea that is created by him on his own. The business that will be
established by this process may be a small business or a bis entrepreneur.
 Industrial entrepreneur : in this the needs and requirements of the customers are
studied and than on the basis of that the product is manufactured in order to satisfy their
needs.

 The skeptical entrepreneur : these are those types of entrepreneurs which are formed by
seeing others. For the formation of these the business of that other person is studied and
considers the points that they think are received by some of the successful entrepreneur.
 The research entrepreneur : For the formation of this entrepreneur a research is
conducted in which all the aspects that are important are examined that will be required
to start a entrepreneur and also the outcomes that will be received from it in order to
become successful (Bosma and Levie, 2010). But sometimes it happens that too much of
the information is researched and it proves as an excuse for not doing anything.
 The determined entrepreneur : these are formed when it is sure that the business will
become successful and they try to do everything that can be done so that the entrepreneur
can be started and further growth can be achieved.
P2 Similarities and differences between entrepreneurial ventures.
There are certain similarities and differences between various entrepreneurial ventures
and that are described in the table below:
Scalable start up
entrepreneurship
Small-business
entrepreneurship
Similarities In this the new and innovative
ideas are used in order to earn
the profit and also to improve the
performance.
In small-business
entrepreneurship the profits are
maximised by taking high amount
of risk. In this also the
effectiveness will be identified by
the amount of profit earned.
Differences In case of scalable business the
level of profit will depend on the
amount of innovative and new
ideas that are undertaken
(Bruton, Ahlstrom and Li, 2010).
The risk of uncertainty will be
required to be measured which is
not required in small-business.
In case of small-business the
growth that can be achieved is
limited. The growth will be
identified by undertaking small
period will depend on the profits
earned.

Large company
entrepreneurship
Social entrepreneurship
Similarities In this form of business the
wants of the customers are
considered in order to make
the product of their choice and
by it increase in the level of
profits will be achieved.
In this form also the needs and
wants of the public is
considered so that the social
problems can be solved and
requirements of the public can
be met.
Differences In large companies the main
focus is on increase in level of
profits which can be achieved
by undertaking big projects.
Profit level will determine the
success and effectiveness of
the company.
In case if social
entrepreneurship the main
focus is given to the upliftment
of the society and not on
earning profits and this can be
achieved by satisfying the
needs of the public (Carraher
and Paridon, 2015). The
effectiveness of the business
will be identified by the level
of customer satisfaction.
TASK 2
P3 impact of small-business and micro businesses on the economy.
The micro and small-business have a positive impact on the economy that can be
identified by the the level of satisfaction that the customers get from the services and products
the are provided by these businesses (Carsrud and Brännback, 2011). A part from this also there
are other factors which will tell about the impact of micro and small-business on the economy.
Although small businesses are small in size and does not cover the large area but than also their
impact on the economy will be vast. Some of such factors are discussed below :-

 GDP : gross domestic product will define about the impact on the economy with the help
of determination of value chain. It will be analysed the how much change is there in the
capital and amount of the earnings. The earning will be required to analysed in order to
know the increase as if the earnings will grow than the risk of the product as well as the
company both will be decreased (Chittithaworn and et.al., 2011). The output of the
economy can be determined with the help of it which also will lead to the determination
of the business on the economy.
 Employment : Employment is a very important factor that is required to be considered to
know the impact on the economy. There will be creation of the large number of jobs in
the organisation which will provide employment to many people and hence will increase
the employment rate in the economy (Dacin, Dacin and Matear, 2010). An economy will
be said to be developed if the unemployment rate that is prevailing in the industry is low.
While providing of the employment various aspects are required to be considered such as
practices in relation to the employment that are needed to be followed and also the
productivity level of the workers should also be considered as only if they will prove to
be productive than only they can contribute to the economy.
 Exports : small-business will have impact on the economy by way of their contribution
to the export market. It has been identifies that the most of the exporters that are present
in the market consists of the small-business. Almost twenty six percent of the total
exports value that are conducted are contributed by the small-business by the export they
do of the products to the other countries (Leitch, Hill and Neergaard, 2010). Economy of
the country gets strong by having its goods exported to other parts of the world.
 Competitiveness : the market will become more competitive with the help of small and
micro businesses as new products will be launched by the company that will make the
market competitive (Defourny and Nyssens, 2010). The customers will be attracted to the
new and innovative ideas and all the small-business will try to meet the demands and
wants of the customers so they will bring more new ideas which will lead to increase in
level of competition in the market.

P4 contribution of the small business and start ups to the growth of the social economy.
Brexit is used to define the withdrawal of the united kingdom from the European union.
Under this it was considered that the migrants were discouraged from coming to UK so that there
benefits could be reduced (Dennis Jr, 2011). A social economy is the economy other than the
private and public sector. In this the organisations such as non profit organisations, social
enterprise, cooperative are included whose main aim is to work for the benefit of the society. In
this importance is not given to the profit earning. In the growth of social economy small-business
and start ups play a very important role. There impact on social economy can be understood by
the factors that are mentioned below :-
Job creator : as the start ups are new businesses so there are vast opportunities for the creation
of the jobs which will provide employment opportunities to lot of people and increase the
employment facilities. Due to this there will be growth in the social economy.
Providing skills: In case of small-business and start ups various skills will be required to make
them successful (Drucker, 2014). For that proper skills will be made available to the employees
which will lead to their development and hence will help the social economy.
Motivation for self development : these businesses will provide the motivation for self
development among various employees as there is need for new ideas so in order to achieve the
specified objectives they will be required to develop themselves so this will prove to be a
motivation for them.
Innovative thinking : due to these businesses the level of innovative thing will be increased as it
is the important aspect of start ups and small-business which require new and innovative ideas in
order to ensure there growth and development. With the innovative thinking the social economy
will gain benefits.
The start ups are different from small-business in various aspects which include growth, funding
etc. start ups are designed in a manner which will ensure the fast growth which is different from
the other small businesses (Martin, McNally and Kay, 2013). Start ups generally get the funds by
way of capital that they get from the venture capital firms whereas the funds of small-business
are generally obtained by way of grants or loans.

TASK 3
P5 Characteristic, traits and skills of successful entrepreneurs.
The two entrepreneur who are considered to be the most successful entrepreneur in the
entrepreneurship are Mark Zuckerberg and Bill Gates. They possess certain characteristic and
skills which make them different from the other entrepreneur and will help in the effective
functioning of the business. Entrepreneur decide the method in which the work is required to be
performed so that the objectives and goals that are specified in relation to the business are
achieved in an effective and efficient manner (Durst and Runar Edvardsson, 2012). With their
skills and effectiveness to perform their work the level of the profits together with the market
share will be increased. Some of such characteristic and skills which they possess are described
below :
 Confidence : As it is said that confidence is the key to success so it is important for every
entrepreneur to have confidence in themselves that they can achieve the targets in the
most difficult situations also. This will help them to find the opportunities in case of
challenges also.
 Risk taking : risk taking is important in case of the business in order to earn higher
profits as it is always said that higher will be the risk the profits will be even higher
(Ebert and et. al., 2014). So the successful entrepreneur will be the one who is willing to
take the risks and than also achieve the business objectives in more effective manner.
 Open minded : an entrepreneur should always be open minded which means that they
always takes the changes that come in the market in a positive manner and are ready to
adapt to the changing circumstances (Onetti and et.al., 2012). The suggestions and new
ideas which they get are considered by them in order to improve the performance.
 Money management : management of money is very important in business to make it
successful (Fayolle, 2013). An entrepreneur should have money management skills as if
he will not be able to manage the fund available in an effective manner and due to it the
expenditures will increase which will lead to the failure of the business.
A entrepreneur is different from business manager in various aspects which are described in the
table given below :
Basis entrepreneur Business manager

Motive His main motive is to set an
enterprise by starting a
venture.
His main motive is just to
provide the services in
someone else business.
Bearing of Risk He will be responsible to bear
all the risks and uncertainties
in relation to the business as he
is the owner.
Being a servant he is not
required to bear any risk.
Rewards He gets his reward in form of
profit for bearing all the risk
(Welter, 2011). The reward for
him are highly uncertain.
He gets his reward in the form
of the salary and that is fixed
and certain.
Qualification requirement The qualification and qualities
which he is required to possess
will include innovative
thinking, risk bearing, and
high confidence.
The qualification and qualities
that a manager is required to
possess will include
appropriate knowledge about
various management theories
and practices.
Innovative thinking He is required to be innovative
so that can make new and
innovative plans for the
achievement of the business
objectives and its growth.
Innovation is not required as
he just have to work according
to the plans and procedures
which are already prescribed.
P6 how will the entrepreneurial personality reflect entrepreneurial motivation and mind set.
There are various aspects in the personality of the entrepreneur that will reflect his
motivation and mind set. Some of such aspects are discussed below :
Risk taking and entrepreneurial motivation : It is important for an entrepreneur to take risk in
order to become successful. It should be identified that whether he is ready to take the risk or not
as if he will not take risk than the growth of the business will not be possible (George and Bock,
2011). The business is full of uncertainties so it is difficult to take decisions and this will be

considered as risk taking. It will prove to be a motivation for the entrepreneur as he will be
motivated to take more risk if he wants to increase the profitability of the business as the profits
that will be earned will be his reward only. So to increase his rewards he will be motivated to
take high risk. With this motivation the final benefit will came to the business only.
Self confidence and motivation : the personality of the entrepreneur should have self confidence
as that will enable him to start a new business (Herrington and et. al., 2010J). For the purpose of
new business they will have to evaluate their confidence level in order to increase the efficiency
of the organisation. Increasing of business is the main objective and as that can be achieved by
self confidence so he will try to increase that. In this way the self confidence will prove to be an
important aspect for the motivation.
TASK 4
P7 Background and experience can hider or foster entrepreneurship.
The background and experience of the entrepreneur will be very important in creating
hindrance or in fostering entrepreneurship. His past experience will help him to work in an
effective way and to take good decisions that will prove to be beneficial in achievement of
organisations targets which will act as a motivation for them (ones and Rowley, 2011). They will
be able to have innovative ideas that will help him in effective formulation of various plans and
strategies required to achieve the business objectives. As they will have experience it will
increase their confidence level which is a required quality of entrepreneur. As they will be
experienced and are from business background it will help them to take productive decisions
which will enhance the productivity of the business. They will be able to deal with the problems
that will arise in the business in a better way due to the level of understanding they possess.
They know how to treat the employees and others so that they work with their full potential and
help the business in gaining success. In starting a new business various aspects are required to be
considered which if not taken into account will prove to be the reason for the failure of the
business (Kirzner, 2015). So by having the experience they will be able to identify all such
aspects and also to deal with them which will help them in establishing a successful business that
will render them with high returns in form of profits which will prove to be a motivation for
them.

CONCLUSION
It is to conclude that from the above mentioned report it has been identified that there are
different types of entrepreneurial ventures in the entrepreneurship which have certain amount of
similarities and differences. It has been identified that small-business contribute to the economy
in a positive manner. Also for the achievement of the business objectives there are some
characteristics, traits and skills that an entrepreneur is required to possess which are identified by
analysing the traits of most successful entrepreneurs and their background and experience also
plays a very important role in the success of the organisation.
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