Entrepreneurship and Small Business Management: Report and Analysis

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and its ecosystem, then explores different types of entrepreneurial ventures, including small business ventures, scalable startups, large company ventures, and social ventures, along with their relationship to the typology of entrepreneurship. The report also examines the similarities and differences between these ventures, highlighting their contributions to economic growth and innovation. Furthermore, it delves into the impact of micro and small businesses on the economy, particularly in the UK, and discusses the importance of small businesses and startups in contributing to the growth of the social economy, especially in the context of Brexit. Finally, the report identifies and analyzes the characteristics, traits, and skills of successful entrepreneurs, differentiating them from traditional business managers, with examples like Mark Zuckerberg and Steve Jobs. The report emphasizes the importance of determination, innovation, and other key attributes for entrepreneurial success.

Entrepreneurship and Small
Business Management
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INTRODUCTION
Entrepreneurship is the concept which shows the capacity and willingness to develop,
organize and manage a business venture along with any of its risks in order to make a profit.
Example of entrepreneurship is starting of new business by a person in order to make profits on
its own. It is basically a process of designing, launching and running of new business , which
typically starts as small business, which offers a product, process or service for sale or for hire
(Berglund, Johannisson and Schwartz, 2012). The persons who do so are called entrepreneurs.
Entrepreneurship typically operates within an entrepreneurship ecosystem which often includes
government programs and services that promotes entrepreneurship and supports also. Small
business management means to control and manage the operations of small business. Small
business have impacted the economy in many ways. In context of entrepreneurship, it is said that
it is beneficial for economic growth and development. In this present report,different types of
entrepreneurship has been discussed along with the similarities and differences between
entrepreneurial ventures. Also, it is said that small business enterprises contributes to the growth
of economy. Entrepreneurs are different from business managers in skills, characteristics as well
various traits.
TASK1
P1 Different types of entrepreneurial ventures and their relationship with typology of
entrepreneurship
Entrepreneurship has been defined as a process of designing, launching and running a
new business, which typically begins as a small business, such as start up company. It also
includes offering a product, process or service for sale or hire. The people who start the business
are known as entrepreneurs (Bridge and O'Neill, 2012). It has been assessed that
entrepreneurship is the capacity and willingness to develop, organize and manage a business
venture with any of its risks to make profit. Entrepreneurship basically involves identifying
opportunities and evaluating them in the best way possible and then decide to exploit
opportunities by making new products and services or launch new industry or firms so that
wealth is created by them. There are 4 types of entrepreneurial ventures in the present era that are
as follows:
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1. Small business ventures : business venture consider the small businesses where one or
more individuals comes with ideas, plans, some resources to start their own venture at
small level as the invest with expectations of generating profits and incomes and run their
business. there are several types of small-businesses created which based on demand of
the market as well as lack of supply in the market. Government also support to the new
venture as for their development.
2. Scalable start up ventures : when starts the new business it is considering that helps to
develop the business and increase the profits. Successful organisations growth depends
on the scalable business model that helps in achieving organisation goals and objectives
and also support to decrease the cost and expenses. New venture starts with hope of
taking current business to the next or high level for growing business.
3. Large company ventures: large scale companies are described the all activities that run
in the business from excess transaction to more general as doing big things to develop the
organisation. It included the large-scale, corporate-controlled business or financial
activities. Generally large scale means running business in grand or big manner and
performs all tasks as well as obey all legal policies or rules and regulations.
4. Social ventures: social venture undertakes the organisation which set up by a social
entrepreneur to provide alternative solutions for achieving sustainable, social objectives.
It can be structured in many forms like sole proprietors, for profit and not profits firms,
non governmental organisation and many more for the social purpose as to provide them
best services and satisfy their needs and wants.
Furthermore, they are related to typology of entrepreneurship, it means that the various types of
entrepreneurship ventures are connected with its typologies. Small business ventures are those
which involves small entrepreneur whose main motive is to make profit by starting up small
business. They manage it through their family and known workers. On the other hand large scale
business are related to more capital investment. Their main motive is to maximise the profits of
business. They mainly aim to get higher returns on the products and service4s that has been
offered by them to public (Dennis Jr, 2011).
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P2 The similarities and differences between entrepreneurial ventures
There are different entrepreneurial ventures that are establishing within the region as it is
highly beneficial for enabling the development and growth within the economy. There are
various entrepreneurial ventures that is small business or local entrepreneur, global entrepreneur
as well as social venture. All these entrepreneurial venture has certain similarities and
dissimilarities among them (Ebert and et.al 2014). The similarities among all these
entrepreneurial venture is to engage in economic growth and development. Along with this,
another similarities among all the venture is that they key aim of establishing venture is to
engage in the innovative activities so that it may benefit both entrepreneur as well as individual.
With the certain similarities there are some dissimilarities among all the venture that is
under small business enterprise venture or local enterprise venture the entrepreneur fund or raise
capital through small loans or with the help of family or friend (Fassin, Van Rossem and
Buelens, 2011). On the other hand, another entrepreneurial venture is social entrepreneurship
who is funded by governmental agencies or authorities as the established to serve the community
development. In addition to this, another dissimilarities among both the entrepreneurial venture
is that they barely operate their activities for earning higher profits. On the contrary to this, social
entrepreneurial venture is established not to make market share or wealth for the entrepreneur.
The purpose of this venture is to make the world a better place with overcoming or meeting the
social needs.
Along with this, there are some other distinction between both the business venture that is
business enterprise and social entrepreneurial venture. The differentiation is done on the basis of
value creation that is business entrepreneurial mainly focuses on delivering the quality product
with the help of attaining competitive pricing (Gorgievski, Ascalon and Stephan, 2011). On the
contrary to this, social entrepreneurial venture engage in creating social value through delivering
proper services with creating economic value. Another dissimilarities among both the
entrepreneurial venture us that business entrepreneurial venture spend huge amount on the
marketing activities so that it may easily offer the products and values to the customers. On the
other hand, social entrepreneurial venture mainly focuses on using the organic or traditional
marketing communication tactics so that they mat easily reach to the mass of audiences.
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TASK 2
P3 How micro and small businesses impact on the economy
Micro and small businesses within UK positively impact the economy as it support in the
development. As the micro or small business within the region do not generate the revenue like
the large organisation. But they are regarded as the key contributor within the UK economy that
generate the employment opportunities. From the conducted research it is assessed that small
business are defined as those business that have 500 employees or less employees that engage in
the activities that benefit the organisation (Hatten, 2015).
Along with this, it has been also stated that micro and small business positively impact on
contributing their share among the local economies through bringing innovation and growth
among the society in which the business is operating their services and activities. Moreover, it is
also assessed that small business within UK also excite the growth within the economy through
providing them employment opportunities that are not employable by the large business
enterprise (Lee-Ross and Lashley, 2010). With the help of conducting research it is also assessed
that in the existing UK economy around 95% of the market is covered by the small medium
sized enterprise on the other hand, 5% of the market is targeted by the big corporation. Along
with this, it is also assessed that small businesses often contribute around 50% to the world gross
value add as they are consider as innovators in the contemporary scenario.
P4 How important small businesses and business start up will contribute to the growth of social
economy
With the state of Brexit and exiting of UK from the European Union it negatively impact
the economy as businesses exit the market due to low employment opportunities. Therefore, after
the Brexit UK economy mainly focuses on establishing the small businesses as well as business
start ups as it will positively contribute in the growth of social economy (Ligthelm, 2010). The
small businesses will operate within the UK region itself and contribute in meeting the needs and
requirement of the local individuals. Therefore, it is stated that to grow and develop the economy
it is significant for the small business to enter within the economy. The significant of small
business and start up will mainly contribute in the following aspects that is- Income- The key significance of small business within the UK economy is that it will
contribute in attaining the development of social economy through enhancing the
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individual income by providing employment opportunities. With the start up of the small
business it would mainly contribute in developing the social economy through
maintaining the income level of individual those who are delivering services within the
setting (Longenecker, Petty and Hoy, 2013).
 Employment- In addition to this, another significance of small businesses and business
start up is that it will positively contribute in attaining the growth or enhancement in
providing employment within the society. With the establishment of business start up it
will positively outcome in increasing the rate of employment within the UK region as
establishing the business would results in enabling the higher employment.
TASK 3
P5 The characteristics, traits and skills of successful entrepreneur which differentiate them from
other business managers
There are distinct skills, characteristic as well as traits that differentiate an entrepreneur
with the business managers. There are different entrepreneurs that has changed and bring the
revolution within the industry. The successful entrepreneur namely include Mark Zuckerberg as
well as Steve Jobs both have changed the world and bring technological revolution in the world.
Mark Zuckerberg internet entrepreneur focuses on bringing revolution through launching
Facebook one of the leading social media sites on which the individual may easily share their
images and video that is commonly visited large masses of audience (Mariotti and Glackin,
2014). On the other hand, anpother successful entrepreneur is Steve Jobs that has brought the
revolution in the field of computers and smart phones through bringing laptops and other items.
He was the CEO of Apple Inc. that have engaged in launching personal computers, smart
phones, Ipod, Ipad etc.
Therefore, it is determined as both the successful entrepreneur possess effective
characteristic, skills and traits that distinct with each other and results in bringing creative and
innovative ideas that has changed the individual lifestyle (Neck and Greene, 2011). The certain
characteristic and skills of successful entrepreneur includes-
 The foremost characteristic or trait of successful entrepreneur is that they must have full
of determination so that they may clearly set goals and long term vision that is attained by
them. It mainly include setting the goals related with growing the business as well as
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increasing the profit ratio of the firm etc. for instance, entrepreneur that is Mark
Zuckerberg has this particular trait that has resulted in meeting their goal in the field of
internet and has launched the Facebook sites.
 Another trait or characteristic of entrepreneur is that they are innovator and engage in
performing the activities that are innovative in nature so that they can meet the
requirement and need of the individual (Nga and Shamuganathan, 2010). For instance,
Steve Jobs have inventor attribute that has results in inventing the personal computers so
that it may easily meet the requirement of individual.
 Another required characteristic of the successful entrepreneur is that they are open-
minded and ready to accept the ideas and thought of their staff that benefit the
organization to attain the success and engage in creating valuable product that meet the
requirement of customers.
With the above certain characteristic, traits and skills of successful entrepreneur it has
been assessed that they are different from the business manager (Sampaio Thomas and Font,
2012). The different among entrepreneur and business manager as enumerated as follows-
Entrepreneur Business Manager
 The key emphasis of entrepreneur is on
establishing or starting up the new
business or making innovation so that
they may easily grab the market share.
 Entrepreneur has ability to taking risks
and make plans for the creative and
innovative action so that they may
easily attain the wealth and make profit
(Scarborough, 2012).
 On the other hand, business manager
mainly focuses on controlling the
operational activities in such a manner
that it may lead to accomplish the goals
of organisation.
 On the other hand, business managers
manage their work, roles and
responsibilities which are related to the
business as managing and controlling
the daily activities.
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P6 How aspects of entrepreneurial personality reflect entrepreneurial motivation and mind-set
Entrepreneur is a person who has started, designed and operating its own business with
the help of its skills and capabilities that are required to be in an entrepreneur. They have the
abilities by which they can impact the other entrepreneurs across the world. They have different
and unique characteristics which make them successful (Schaper and et. al., 2014). One of the
important characteristics are that they should be viable in operating its business operations .
They are set as an ideal by which other upcoming entrepreneurs get motivated by their skill and
characteristics. As stated above Mark Zuckerberg and Steve Jobs are the most happening and
famous entrepreneurs in the present era. They have the qualities by which other people get
motivated. Like mark Zuckerberg is a new sensational entrepreneur as he has launched a
application named as Facebook. It is a platform through which people across the world can
socially connect with other by sharing photos and also videos. Discipline. Innovation skills and
determination are the most highlighting features of Mark Zuckerberg, which inspire the world.
At an young age, he has started its own business and become a successful entrepreneur. On the
other hand, Steve jobs is also a successful entrepreneur which guides the people with his
passionate and work oriented skills (Stokes, Wilson and Wilson, 2010). They both lay the
foundation to empower other people to start up new business. They have sparkled a light of
passion towards entrepreneurial interest. They have created a positive impact on the mindset of
an individual to be work oriented towards the work which one is having interest. People get
inspired by the decision making personality of the entrepreneurs which handles the entire
business of the firm .they have also showed that there should be full determination about any
work to be done so that proper results can be the reward. According to successful entrepreneurs
one should have a passionate personality to take each and every decision regarding its firm.
Proper discipline should be ensured so that it can lead to proper achievement of all the goals and
objectives of the business firm (Storey and Greene, 2010). According to Mark Zuckerberg, there
should be proper communication skills established in the firm which can result in effective
results. They have an positive impact on the young generation of the world regarding
entrepreneurship. They have an ability to influence its employees by their managing and
communication skills.
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It has been further assessed that reflected entrepreneurial personality support the other
existing entrepreneur in taking the risk activities so that they may easily engage in the innovation
actions. Thus, it often meet the requirement of their customers.
TASK 4
P7 Background and experience can hinder or foster entrepreneurship
From the conducted research it has been assessed that different abilities and skills within
the individual results in affecting their mind-set as well as personality to become the
entrepreneurs and attain success in the competitive environment (Agbim, 2013). There are
various elements and facts that can encourage the entrepreneurship among the individual as it
included their skills and attributes, background as well as maximum experience. Apart from this,
there are more components that also may hamper the entrepreneurship within the individual that
mainly include financial barrier and social barrier that hinder the entrepreneurship (Berglund,
Johannisson and Schwartz, 2012).
In order to success the business entrepreneur should have knowledge or able to plan
properly as effective skills and knowledge regarding the business. For organisation development
entrepreneur conduct research for market study and analyse the marketing trends or environment
to make effective plans for start the business and ensure about its future growth. Entrepreneur
also should have knowledge regarding the business management in different situation as
managerial skills required in which ensure about the utilisation of available resources effectively
and efficiently so they focus in proper management system when start the new firm. Moreover
entrepreneur plays several roles to accomplish the goals and objectives as it involves various
process like planning, organising, staffing, directing and controlling in the business and manage
all activities to achieve the target and objectives that can easily foster the entrepreneurship within
the individual.
The foremost factor that foster entrepreneurship include individual background; if the
family background of individual focuses on performing innovative activities and functions then
individual may be effective and prompt in taking risk activities so that it may easily succeed in
the competitive atmosphere (Fassin, Van Rossem and Buelens, 2011). With the help of
entrepreneurial background individual may easily foster in taking effective decisions regarding
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the business activities that results in establishing the successful entrepreneurial venture in the
region.
On the other hand, through conducting the research it has been also identified that
experience among the individual can also focuses on fostering the entrepreneurial activities
within the UK. Experience among the individual indicates that they have engaged in more
struggling activities that have lead to engage in taking effective decision that outcome in
delivering quality services.
Despite of certain positive factors there are some other factors and facets that can hinder
the entrepreneurship among the individual that is unstable financial factor. It has been assessed
that accessing finance plays significant role for all the firms or small business so that they can
easily accomplishes the objective (Scarborough, 2012). Therefore, financial barrier is consider as
the factor that can hinder the entrepreneurship among the individual. With the financial barrier
individual are unable to perform their activities as for the initial start up and growth of the
business entrepreneur requires huge amount to be invested so that they can easily attain the
objectives and goals.
Along with the financial barriers there is social and culture barrier that can hinder the
entrepreneurship facets among the individual. Therefore, it is assessed that for setting an
entrepreneurial venture in the region it is required by the enterpriser to have adequate knowledge
regarding the market, industry as well as cultural profile so that they can successfully establish
the venture in the region (Sampaio, Thomas and Font, 2012). Therefore, with the establishment
of small enterprise within the region entrepreneur require to have adequate network so that they
can easily engage in establishing the business.
CONCLUSION
From the above aforementioned report it has been concluded that entrepreneurial growth
and the small business development are mainly evolving within the economy as it positively
contribute to the economy. Along with this, it has been also assessed that entrepreneurs have
creative minds that mainly engage in taking effective and considerable level of risk so that they
may easily bring the innovation within the industry. Wherein, it is also summarized that
entrepreneurship activities within the economy is mainly consider as significant aspect that has
results in attaining the growth and development of the economy. Along with this, report also
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