Entrepreneurship and Small Business Management Report: Unit 9 Analysis

This report delves into the core concepts of entrepreneurship and small business management. It begins by examining various types of entrepreneurial ventures, including small, scalable, social, and large enterprises, and explores how these relate to different entrepreneurial typologies. The report then analyzes the impact of micro and small businesses on the economy, supported by relevant data and statistics, and discusses their importance to the growth of the social economy. Furthermore, it identifies the characteristic traits and skills that distinguish successful entrepreneurs from other business managers, assessing how entrepreneurial personality reflects motivation and mind-set. Finally, the report investigates how background and experience can either hinder or foster entrepreneurial endeavors, providing a comprehensive overview of the entrepreneurial landscape.

Unit 9 - Entrepreneurship
and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.......................................................................................................1
P2 Explore the similarities and differences between entrepreneurial ventures...........................3
TASK 2............................................................................................................................................6
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy................................................................................................................6
P4 Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................8
TASK 3............................................................................................................................................9
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers............................................................................................9
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set...............................................................................................................................11
TASK 4..........................................................................................................................................12
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCE................................................................................................................................15

INTRODUCTION
Entrepreneurship is the concept of creating, managing and developing the business
venture that provides the profitability by accomplishing goals. This is the process of creating
new enterprises by taking risk and arranging the resources. It has been seen that needs and wants
of customers are changing day by day where it is needed to bring the variety of product and
services by using innovation and creating new ideas (Sozuer, Altuntas and Semercioz, 2017). In
other words, entrepreneur is a person who is having good knowledge and skills to bring
something new that increases the business performance and attain organisational as well as
personal goals. The report is bases on entrepreneurship and small business management in which
new products and service are introduced by management in order to improve profitability. The
report covers range of venture types, impact of small business on economy, key aspects of
entrepreneurial mind-set, and environment that foster or hinder entrepreneurship.
TASK 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Entrepreneurship is the activity of seeking investment and production opportunity,
developing and managing business venture that can help to operate the business properly and
increase profitability.
Definition of entrepreneurship: According to Jena (2020), entrepreneurship is the main
activity for any enterprises by involving identification of needs, creating new ideas, and
developing the business by implementation that can help to increase the business performance.
The entrepreneurial activities are to starting any venture and business by using their ideas that
can help to generate the money effectively.
Types of entrepreneurial ventures
Small entrepreneurship: This means a business which is operating and running by single
person in order to generate the money and living their life on daily basis. This business is
providing products and services in small range and fill the needs properly. These businesses

undertake stationary shops, groceries and so on who have limited employees. For this, the
example of small scale business in UK is Marshfield Bakery that manages its small business and
workforce by offering home made products within UK.
Scalable entrepreneurship: This kind of venture is operating their business by arranging
funds and comes up with new ideas and innovation time to time which can help to continue the
business activities. In other words, scalable entrepreneurship is a business model which is started
on the basis of unique idea and bring the changes in their existing products and services. These
entrepreneurs need to conduct research to achieve growth and success in market area. For
example, Bulb which is the scalable start up that impact the marketing environment of UK to
offer innovative ideas by providing 100% renewable electricity in UK.
Social entrepreneurship: This can be defined as an approach by involving individual,
groups, start up and entrepreneurs that are setting their business for the purpose of doing social
benefits. This helps to increase the satisfaction between people by offering better services to
society (Julien, ed., 2018). For example, Gravity lights in UK is the effective example of social
entrepreneurship in order to offer lights to individuals by replacing harmful kerosene lamps.
Large entrepreneurship: This means an entrepreneurship which is operating by large
number of people in order to meet with market demand and attaining the higher profitability. It
has been seen that small business turn in to large companies by growing business rapidly by
offering variety of products and services. These entrepreneurs prominently opt changes and
develop their product as per the demand and requirements of customers. For instance, British
Airways that leads to provide aviation service at the global level.
Relation with typology
Growth typology: The typology entails attitudes and needs of customers that should be
fulfil by offering the products and services. Small and social enterprise are interrelated with
growth typology as both companies are thinking to grow their business by developing the more
products and services. They conduct the market analysis and brings the services accordingly for
the purpose of satisfying customers (Ramadani and et.al., 2017).
Lifestyle typology: This means to bring the new products and services according to
changing trend, culture, classification of customers that are focusing by entrepreneurs to provide
the kind of products. Large and scalable businesses are related with lifestyle typology as it takes
innovative ideas and search for repeatable business model which can help to increase the sales

and profitability in changing environment. Nokia is based on life style entrepreneurship as it
brings new products as per changing trend.
P2 Explore the similarities and differences between entrepreneurial ventures
Difference between entrepreneurial ventures
Basis Entrepreneurs Serial entrepreneurs Owner/manager
Meaning This means an
individual who create
and establish new
business by taking risk
is known as
entrepreneur. a
An entrepreneur who
continuously comes up
with new ideas and
starting their business
properly in order to
increase the number of
customers.
This means a person who
establishes business
enterprise for the purpose
of getting profitability and
attaining individual as well
as organisational goals.
Roles and
responsibiliti
es
The entrepreneur is
playing important role
as brings new ideas,
planning, customer
service and marketing
activities.
The roles and
responsibilities of serial
entrepreneur is to bring
the new ideas and offer
the products as well
which can help to increase
productivity.
The roles and
responsibilities of owner is
to identify the market and
bring the uses of different
channel to reach the
targeted customers for
selling their products.
Differences
Scalable start-ups and social entrepreneurial ventures
Basis Scalable start-ups Social entrepreneurial
ventures
Purpose The purpose of these ventures
is to earn profit by taking risk
for their idea. They also want
to spread their unique ideas in
world to enhance awareness
regarding the product.
Earning profit is not the major
objective when these
entrepreneurs set up their
social ventures. Their main
objective is to offer effective
services to those people who

are needy and poor by
considering corporate social
responsibility.
Ideology It depicts the suitable reason
to came in market by
launching individuals with
their innovative ideas by
making major changes at the
global level.
It is related with the social
welfare which is being done
by communities, individuals
and social welfare societies.
Large and small-scale entrepreneurship
Basis Small scale business Large company
Scope These entrepreneurs lead to
take risk factor in terms of
earning profit as they tend to
promote stability within the
organisation that helps in
achieve competitive advantage
in market and high revenues.
These are the entrepreneurs
who leads to take more risk
that is useful in earning more
profitability and their courage
of taking risk is useful for
them in expanding their
business.
Risk taking They do not take much risk
because they are not ready to
take risk for their business as
the risk factor is relatively low
for the expansion and
operational activities which
are stable.
Here, the risk factor is high
and organisational structure is
quite complicated. For this, the
reason behind the effective
profitability and return is
useful for them in improving
their operational activities.
Similarities between entrepreneurial ventures
The prominent similarity among these kinds of ventures that are being discussed as
below:
Scalable start-ups and social entrepreneurial ventures

 These ventures are similar as they both are helpful in order to develop job opportunities
which is useful in effectively improving and contributing towards the growth of GDP rate
of company. Moreover, both the entrepreneurs are quite passionate about their work as by which they
might face several critical situations but their passion is useful for them to accomplish
success for the company.
Large and small scale entrepreneurship
 The basic similarity among these entrepreneurs is that they came in market to earn
maximum profitability and growth which is useful for them to achieve market success
and growth.
 Moreover, both the entrepreneurs are creative and innovative to operate their company as
it is useful for the company in terms of driving company towards the achievement of
competitive advantage.
Furthermore, it is being analysed that entrepreneurial ventures are small, social, scalable and
large that are operating at different sector by providing range of products and services as per
demand.
At public sector: Small and social ventures are diversifying their business in public sector
as it introduces the products and services at small range that aims only to fill the demand and
develop the customer satisfaction (Newman, Schwarz and Ahlstrom, 2017).
At corporate sector: In relation to corporate sector, scalable and large organisations are
running activities at higher range which provides higher profits by attaining the competitive
advantages effectively.
Therefore, entrepreneurship is related to corporate and public sector as it brings
innovation as per demand and make efforts to fill them which can help to fill personal as well as
professional goals.
Critical Evaluation: The size and scope of entrepreneurial venture is different as small
businesses are operated with small size where number of employees are less than 10 and aims to
live their daily life. The size of medium venture is moderate as it involves less than 250 people
by arranging different sources of fund and making efforts to grow their business more. On the
other side, size and scope of large company is greater as it includes more than 250 employees

who have collected to work properly by managing all functions according to their skills and
abilities.
TASK 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Within the business sector, micro, small, medium and large companies play an important
role within the economy of UK as it is useful in terms of developing several job opportunities for
their individuals. By this, they can prominently bring creativity and innovation considering the
financial dependencies within the company. For this, several organisations are discussed as
below: Small business: These organisations are privately owned and have few employees with
low revenues instead of regular business. It is the concept of self-employment and start-
ups in which the entrepreneurs get fluctuate according to the size, country and number of
workforce which is not more than 500 employees. Therefore, the few investment tends to
enhance the market share but not the size that has the limited amount of resources.
 Micro business: These are the businesses that has low annual sales and revenues which is
less than 5 employees that undertake owner as well. For this, the common business
environment undertakes computer services, catering and so on as these enterprises that
depends on the different sectors of country (Kuratko and Morris, 2018).
Micro businesses are defined as those business which are operating by less number of
people and filling the customers demand at local market. Whereas, small business is those which
are operating by people collectively and managing the organisational performance that can help
to improve the economic condition. This is important for any organisation to provide the
products and services as per demand that can help to improve the economic situation of any
country. The micro and small businesses are generating multiple employment opportunities,
expand taxes on the basis of innovation and providing the different benefits to customers that can
help to bring the improvements. Small businesses are increasing the competition as it increases
the demand and distribution of products properly. In other words, entrepreneurship is playing an
important role in economic growth and living standard of country. This provides additional
dynamics and competitiveness to local and national economy. Hence, the small and micro

companies play an important role that helps in developing the economy of country with the help
of creative thoughts, innovation and updated technology. As these elements are useful for the
operational activities and also useful to achieve the sustainability in rapid changing business
environment.
The government of UK is supporting to all small and micro business as it provides
multiple jobs to job seekers and brings the innovation that can help to increase the business
productivity and social economy. This also helps to bring the improvement in people lives as
they get the job opportunities and fill the demand of their family that helps to attain the country
as well as personal goals (Brush and et.al., 2019).
Illustration 1: Contribution of small business in UK economy, 2021
Source: Contribution of small business in UK economy, 2021

From the graph and statistics, it can be understanding that small businesses have wider
contribution in UK's economy as 99.3% are small businesses established by understanding needs
and wants of people who are living in country. This chart states 47.8% small business are
generating employment and attaining the 36.8% turnover that can help to increase the business
performance and supports to attain the higher profitability. By generating employment, it reduces
the unemployment rate which is pertaining in country due to Brexit and other pandemic. This
provides job to local as well as national level people who willing to work effectively. Thus, small
businesses are contributing in UK's economy by generating employment opportunity, increasing
turnover and managing all functions.
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy
Small business is important as it generate the employment for people who willing to
work and fill the needs and wants to their customers. To establish any enterprise there is
needs to analysis the market and conduct proper research which can help to increase the
business performance and profitability.
Innovation: This can be explained as creation of new ideas, development, and
implementation of new product and services that can help to increase the business
performance. It can be use by small as well as large organisation for the purpose of increasing
organizational productivity, efficiency, and competitive advantages. ASDA is large size
organization that brings the innovation in their products and services by conducting market
analysis and developing the new products as per customer's requirements which helps to
increase productivity.
Creativity: This can be explained as tendency which use to recognising new ideas,
solving problems, and managing the all functions that are important for industry to manage
the higher performance. This helps to modify the existing products or introducing new one in
the market place. In relation to ASDA, Zuber and Mohsin Issa bring creativity in their
products and services that influence number of customers and develop the brand image.
Businesses protects intellectual property: There are various technique or tool which
can be use by companies to protect their intellectual property and managing the brand image.
Copyright, patent, and trademark are effective tool that should be use by management of any
industry to maintain a goodwill and protecting from imitation. In relation to ASDA, using

trade mark to protect their protect and services from others as it save logo and manage the
good brand image. By using trade mark no other business concern is allowed to use its logo,
service and other things which is make it different from other retailers.
The importance of small business and start-ups are defined as:
Small business employing the local workers: Small businesses are important as it
provides the employment at least 10 employees who are unemployment and wants to work
for generating revenues. This can help to fill the customers demand and satisfying them
properly (Collins and et.al., 2017).
Community development: The major part of small business is community
development by stating the variety of services. The community needs coaching,
infrastructure, healthcare, and public services which can help to complete the demand of
society and attain the objectives.
Contributing to local government with taxes: This means when small businesses
are established in particular country or state then it is requiring to pay the taxes as per fixed
rate that impacts positively on economy. This contributing amount is uses to build schools,
constructing road, providing meal to people and others that brings improvement.
Growing small business in to large organization: The small business is impacting
positively on economy as it changes in to large organisation by using new ideas, innovation
and developing the range of products that fill the customer’s needs and wants effectively.
Improving productivity and profitability: Start-ups is needed to arrange the funds
and resources which are getting by using new ideas and skills. By using innovation and new
products a small organisation can bring the improvements in their productivity and
profitability (Fayolle, 2018).
Therefore, small, medium and large size organisations are giving their contribution in
economy as shown through graph, most of the businesses in UK are small that are operating their
business effectively. The object of such venture are to operate their business and generate the
income by managing all functions and capital that relates to organisation. Small and medium
enterprises are creating the job opportunity, contributing in tax rates and developing community
which can help to attain the higher benefits in changing environment.
Critical Evaluation: A business which is small in size contributes to local economy as it brings
innovation for community and developing job opportunities at larger corporation that can help to

increase performance at local level. Entrepreneurs set up new business and industrial units by
facilitating regional development that can help to grow the backward area and increase the living
standard of society (Hosseininia and Ramezani, 2016). This shows large level that brings the
improvement in economy of particular country as it creates the job opportunities, making more
competitive market and offer the products at lower prices which can help to increase business
productivity and make strong an economy.
TASK 3
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers
For starting and establishing any business, skills and characteristics is defined as main
task for entrepreneurs as it develops the understanding how to run a business by generating new
ideas which can help to continue the activities. If people does not have enough skills and talent,
then it won't be possible to operate their functions continuously. Zuber and Mohsin Issa are two
entrepreneurs who started their business by using their skills that are as explained below:
Characteristics of Zuber
Decision making: This means a person should have ability to make the right decision by
analysing their task and skills that needs to be done. Zuber is having decision making trait as it
grab the opportunity by determining goals and make right decision for increasing business
activities (Fayolle, 2018).
Creativity: This means to bring the new ideas and knowledge in relation to business
which can help to operate the business regularly and attain the higher performance. Zuber is
having creativity traits which uses to bring the new ideas and thoughts to complete task and
increase the business performance.
Skills of Zuber
Communication skills: Communication is important for all as it clear the messages and
understanding what needs to do and how by clearing information. Zuber is kind of person that
have enough communication skills which uses to share the information with all working staff and
manage the business activities.
Risk taking skills: While establishing and running a business there is need to have
courage and risk taking ability which can help to manage the all organisational performance.