Entrepreneurship and Small Business Management Report - Daniela Lucaci

This report, submitted by Daniela Lucaci, provides a comprehensive overview of entrepreneurship and small business management, fulfilling the requirements of Unit 9 of the HNC Business (Management) program. The report begins by defining entrepreneurship and exploring various entrepreneurial ventures, including small businesses, high-tech firms, and social enterprises. It then delves into the similarities and differences between entrepreneurial ventures, the impact of micro and small businesses on the economy, and the characteristics and skills of successful entrepreneurs. The report also examines the entrepreneurial mindset, motivational drivers, and the influence of background and experience on entrepreneurship, covering both local and international contexts. The report provides a thorough analysis of entrepreneurial ventures, business start-ups, and the entrepreneurial mindset, including the role and importance of small firms to the economy and the balance of risk and reward in starting a new venture.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
LO1..................................................................................................................................................3
P 1................................................................................................................................................3
P2. Similarities and Differences between Entrepreneurial Venture............................................5
LO2..................................................................................................................................................7
P3. Impact of Micro and Small Business over economy.............................................................7
P4. Importance of small businesses and business start up in growth of social economy............9
LO3 ...............................................................................................................................................11
P5 Characteristic traits and skills of successful entrepreneurs. ................................................11
P6. Aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset.....14
LO4................................................................................................................................................16
P7. Background and experience hinder entrepreneurship .........................................................16
CONCLUSION..............................................................................................................................16
REFRENCES.................................................................................................................................18

INTRODUCTION
Entrepreneur is a person who focuses on manging, organizes and assumes different kinds of risk
in order to run a business or enterprise. An entrepreneur plays a vital role in the process of
entrepreneurship by creating, designing as well as launching a new business with limited number
of resources in order to gain profit (Margiono, Zolin and Chang, 2018). Entrepreneurial ventures
can be defined as type of organizations that focuses on opportunities and innovation
simultaneously in order to create or enhance social and economic values. These ventures focus
on resolving high number of uncertainties in order to gain high returns. Entrepreneurs are the one
who create these entrepreneurial ventures. There are various kinds of entrepreneurial ventures
that further consist of various kinds of organizations that operates in different sectors. This
assignment will lay emphasis on various kinds of entrepreneurial ventures, different types of
topologies and ways in which these topologies of entrepreneurship relate to entrepreneurial
ventures, development scope and growth of entrepreneurial ventures, differences and similarities
between entrepreneurial ventures, impact of small and micro business on economy and growth of
social economy, characteristics traits and skills of successful entrepreneurs and ways in which
they differ from business managers, ways in which entrepreneurial mind-set and motivation is
directly or indirectly reflected by their personality and lastly it will also lay emphasis on ways in
which experience and background of entrepreneurs foster or hinder entrepreneurship.
TASK 1
LO1
P 1
Entrepreneurship
It can be defined as a process through which launching, designing and running of a new business
is done (Najafian and et.al., 2018). It can also be defined as an activity in which entrepreneurs
take financial risk in order to make profit or run a successful business. a person who creates
business is known as an entrepreneur.
Different types of Entrepreneurial ventures
Small Business Entrepreneurship: Small business entrepreneurial ventures focuses on innovative
and new ideas and offering. These kind of ventures faces various kinds of risks in order to
increase profitability, customer base by bringing various kinds of changes within their business.

High Tech Firms: These are kind of ventures that focuses on securing revenue and growth in the
sector they operate in by adapting new, advance and rapidly changing technology. There are
various kinds of technologies that are being used by various organizations in such a manner that
such organizations regard it as their unique industrial feature.
High Growth Firms: These are kind of ventures that uses a contrast method as compared to
traditional concept. Organizations that have growth rate larger than 20 percent per annum over a
three-year period comes under High growth firms.
Social Entrepreneurship: these kinds of ventures mainly focuses on social problems or issues
that are required to be resolved with the help of services or products that they provide to the
customers (Margiono, Zolin and Chang, 2018). These kinds of firms can come be both profitable
and non-profitable.
Start-up Entrepreneurship: these are kind of ventures that are founded by entrepreneurs in order
to develop and bring unique and new services and products into the market. Such entrepreneurs
continuously think of new and innovative ideas in order to run their own business successfully.
Large Company Entrepreneurship: Entrepreneurs running this kind of business continuously
focuses on bringing sustainability within their business in order to increase their profitability and
customer base.
Topologies of Different types of Entrepreneurial ventures
Survival Firms: In last few years firm survival has come into picture and is focused a lot. It is
mostly focusing on saving cost, employee laying off I order to remain in growth mode.
Lifestyle Firms: These are kind of firms that provides their owners with opportunities to focus on
a particular kind of lifestyle with a single aim of sustaining a particular income level.
Aggressive growth firms: These are a kind of firms that focuses on returning highest capital gains
for rapid growth of the company.
Public sector entrepreneurship: These are innovative public policy initiatives that generates high
economy prosperity (Neumeyer and Santos, 2018). These are kind of organizations that that
operates traditionally on public domains.
Social enterprise: This topology focuses on exploring ways in which social values and goals are
mixed with business practises.

P2. Similarities and Differences between Entrepreneurial Venture
Entrepreneurial ventures carry various similarities and differences based on the various
aspects that are as follows.
Similarities in Entrepreneurial Venture
Various similarities are assumed between entrepreneurial venture that consist the
following.
Strong-willed Entrepreneur: The major similarity has witnessed among all the entrepreneurs
across the world is all the entrepreneurs carry strong will to make the own identity with the
success of business (Bosma and et.al., 2016). Entrepreneurship is more like a passion and
determination for conducting various business operations.
Funding: All entrepreneurs depends on various venture capitalist and investor to meet the
funding requirements. Funding is among the tough task for all the entrepreneurs as investors
don't take much interest for investment. All the entrepreneurs are majorly depends on bank loan,
venture capitalist, angel investors and government grant and subsidiaries.
Innovation: Innovation is one of the most mutual aspect of entrepreneurship. Entrepreneurs
carry the passion to turn the vision into reality and in such a process entrepreneurs try to use
various innovative ideas and make a successful business out of it. Entrepreneurs carry the
shortage of funds and resources and to run the operations effectively they always try to pursue
innovative and unique ideas to conduct several operations in the lesser investment of funds.
Creating a brand name: All entrepreneurs carry the vision to create the own brand name or
image (Stubbs, 2017). Creating the own brand name or image with the business idea is among
the mutual ambition of all the entrepreneurs.
Sustain against large business: Entrepreneurship is a tough task as various obstacles
entrepreneurs need to face in process to conduct all the business operations successfully. The
major challenge among all other challenges entrepreneurs face is to keep sustain against the large
business organisation.
Differences in Entrepreneurial Venture
Major differences between all the entrepreneurs can be summarised as follows.
Annual growth rate: Growth of the business depends upon various aspects of the business such
as product quality, market performance, profitability and market acceptance. All such aspects

work differently for all the entrepreneurs and it also reflect in the growth rate of entrepreneurs as
all the entrepreneurs witness different growth rates even in the same business sector.
Time Horizon: All entrepreneurs carry different time horizons based on the nature of the
business model and also the investment capacity of entrepreneurs (Liang, Wang and Lazear,
2018). Most of the times various investors also get involve in the businesses and that also play
the crucial factors in deciding the time horizon for entrepreneurs.
Managerial Focus: Many aspects such as business idea, strategies, product, investment potential
and market growth create huge influence over managerial focus in entrepreneurship. Majorly the
business strategies carry the huge impact over managerial focus in entrepreneurship and all
entrepreneurs carry the unique business style that also reflect in the business strategies.
Managerial Style: All entrepreneurs carry the unique style of business and that also impact over
the style of management. Managerial style also depends upon the individual character and
personality of entrepreneurs so all entrepreneurs sustain the different managerial style to conduct
the business operations.
Entrepreneur orientation: All entrepreneurs carry different strategies and policies to frame the
business strategies (Bylund and McCaffrey, 2017). Philosophies of management also depends
upon personal and professional experiences of entrepreneurs that also reflect in the entrepreneur
behaviour.
Managerial skill: Individual personality and characteristic of entrepreneurs also reflect the
management skills of entrepreneurs. All entrepreneurs conducts business operations in different
styles that mostly depends upon nature of business, resources and organization structure.
Technology Investment: Technology play the crucial role in today's entrepreneurship. Based on
the business ideas entrepreneurs carry the different technological needs. After identifying the
need of the business entrepreneurs take decisions in regards to the investment in technologies.
Exit approach: Depends on the convenience entrepreneurs use exit approaches. Based on the
nature, investment, type and resources involved in business entrepreneurs use various exit
approaches for business wound up.
Source of finance: After analysing the needs and demand of the business entrepreneurs take
decisions to use various sources of funds based on the investment needs. Most common finance
sores are personal investment, venture capitalist, business angels, government grants and

assistance, bank loan, financial bootstrapping and buyout. Based on the need and requirements
different entrepreneurs take different decisions for using sources of funds.
Organisation structure: Various factors and aspects of business such as scale of business
operations, financial and other associated resources, leadership style and experience of
entrepreneurs play the big role in setting functional structure of the business (Aghion, 2017). To
feel the best need of business all the entrepreneurs use different structure for organization
hierarchy. The most commonly use organization structures are divisional, functional, matrix and
flatarchy.
Economic motives: Economic motives specifies the approach of entrepreneurs for contributing
the the economy. All such aspects of entrepreneur such as motivation, goal, ambition and
business structure differentiate the economic motives of entrepreneurs.
Reward: Rewards are more like an individual task. Profitability and job satisfaction play the big
role in setting rewards for the employee base of the organization. All entrepreneurs set different
rewards for the employee's in the company.
LO2
P3. Impact of Micro and Small Business over economy
Business is specifies as the organization or an entity engages in various operations to
generate the profitability. Based on the scale of the business organization businesses are
separated in micro business and small business.
Micro Business: Micro business is more like a small business. Usually if the business
organization carry the turnover of less then € 2 million then it is identifies as the micro business.
Micro business also consist the number of employee's to be lesser then 10.
Small Business: According the the Uk company act 2006 businesses are considered to be the
small business if the turnover of the business is less then £ 6.5 million. Small businesses also
cosnist the number of employee's to be lesser then 50.
Impact over economy
Micro and small businesses create a huge impact over the economy of UK as the small
and macro size businesses consist 47 % of UK economy that significantly impact various aspect
of the economy.
Shape the economy: Turnover of the businesses enables the economy to entertain growth. Small
and micro businesses carry the huge share in the economy of UK as the combined combination

of small and micro businesses in UK economy is more then 50%. With the effective contribution
in the economy small and micro businesses provided major growth and development
opportunities to the UK government. The recent figure of economy has shown the development
of small and micro businesses in UK as the businesses could generate the turnover of more then
£2.0 trillion. GDP of UK witnessing the growth rate of almost 2% per annum and with the
support of such businesses the UK government could expand the economy with the same rate.
Growth of small and micro businesses provided the immense opportunities to the UK
government to support various initiatives to cope up the future need of the country. As the
government is working on various new technologies that also require the heavy investment and
small and micro businesses provided such basis to the government.
Employment creation: SMEs in UK are contributing 99% of total business turnover that created
a huge employment in UK. With the support of small and micro businesses the UK government
could address the major employment need of professionals and young graduates. The recent
figures has shown the employment provided by small and micro scale businesses is more then
16.3 million that could cope up with the huge employment needs in UK. The huge development
of small and micro businesses in UK also provided employment opportunities to people from
other part of the world. Employment creation also improve the development opportunities for the
country as the government get more revenues in the form of taxation income. The employment
figures of small and micro businesses is almost 60% of total employment figure of private sector
in UK.

Overcome the financial crisis: The contribution of small and micro businesses in the economy
of UK could enable the government to cope up with the financial crisis. The small and micro
businesses contributed not just in the form of business turnover but huge employment
opportunities also enable the government to deal with crisis. Financial stability play the huge role
in various aspects of economy such as inflation and other associated aspects and SMEs layed the
huge contribution with the business models.
Stability in economy: UK economy is among the stable economy in the world wide and the
small and micro businesses play a big role in making the economy stable as the economy of UK
could effectively grow at the rate of 2% every year. Growth of the small and micro businesses in
the UK could enable the government to deal with economic crisis. UK business sector mainly
depends over SMEs as the major part of the business in UK Is covered by small and micro
business that not only improve the overall business turnover of UK but also improve
employment opportunities. All such aspects in context of SMEs in UK could effectively stable
the economy.
P4. Importance of small businesses and business start up in growth of social economy
Social economy is associated with the rich diversity or enterprises and organisations such
as association, foundation and social enterprises that share the same goal or objectives. Social
economy enable the general interest and democratic governance out of the economic aspect.
Small businesses and start up carry the huge importance in the social economic of UK. Various
improtance are summarised as follows.
Employment creation: Small businesses and start up play the effective role in creating several
employment opportunities in UK not just for the people of UK but it also provide employment to
people come from other part of the world. More then 70% of employment in private sector
enterprises are created by the small businesses and start up in UK. Today the world is facing the
employment crisis as the major developed economies are facing downfall in GDP and in such a
situation to create new employment opportunities is among the major tasks governments across
the globe is facing. The development of small businesses and start up has provided the major
relief to the UK government with the contribution in employment creation for all professionals.
Many young graduates and professionals has been very much foond towards crating own
business start up under the entrepreneurship culture that also supported financially to many job

seeker across the UK. Concept of social economy is more keen towards improving the standard
of living of normal people by providing employment and career opportunities and small
businesses and start up could enable the UK government to achieve the aspects of social
economy with the support of small businesses and business start up.
Innovation: Innovation played the crucial aspects in recent business practices. To improve the
operational efficiencies the corporate organizations looked vary keen towards investing in
innovations. Innovation played immense role not just fr the big corporate houses but also for the
small businesses and start up. Small businesses and start up face various problems and lack of
resources is among the major problem small businesses and start up face. To improve the
operational efficiencies small businesses and start up utilised new and innovative techniques that
enable the such SMEs to improve the operational efficiencies even with the small operational
budgets. Innovation also played the huge role in the growth of the society. As all corporate
houses becomes very much focused towards dealing in eco friendly products and innovation and
new technologies could help the corporate organizations to achieve such social economic aspect.
Leading the way on diversity: Small businesses and start up impacted the economy of UK in
many ways and to create new employment opportunities is among the major contribution. Such
small businesses and start could provide various job opportunities to all kinds of professionals
across the globe that created a huge diversity in corporate culture of UK as people from different
cultures and traditions come together and frame a team to work. Management in SMEs give a lot
of attention towards providing a healthy work culture in the organizational structure and that also
involve well diversified work culture as employee's from different cultures come together to
work. Improved entrepreneurial culture in UK has also attracted to young professionals across
the globe as the work culture of such new businesses and start up focus over using the new and
unique business techniques that enable the young professionals to experiment with the new
operational ideas they posses. All such aspects created a well diversified work culture in UK and
fulfilled the need of social economy effectively.
Meeting social purpose: Small businesses and start up played the important role in meeting
various social purposes such as employment creation, healthy work culture, innovation and
technological development and many other that improved the effectiveness of social economy in
UK. Among all other aspects of social economy the major contribution small businesses and start
up created in form of environment friendly products and business practicess that also improved

the effectiveness of corporate social responsibility in UK. To improve the market presence small
businesses and start up also initiate and contribute in various social issues to earn the trust of
consumer's that also contributed for the small businesses and start up in meeting the need of
social economy in UK.
Local improvement: Small businesses and start up has also contributed in the various
improvement in the society at the local level. SMEs in UK has taken various social initiatives
based on the problems related to the society to improve the standard of living of people.
Improved employment and growth opportunities for the professionals in UK could effectively
meet the employment related requirements with the effective salary packages that also enable the
young professionals to improve the standard of living and it also polished the knowledge and
skills of young professionals that also resulted into improved work efficiencies of such
professionals.
LO3
P5 Characteristic traits and skills of successful entrepreneurs.
Entrepreneur is a person who creates his own business with innovation and creativity to
develop business at a large scale (Ferreira, Fernandes and Ratten, 2017). Entrepreneur help
business to get new ideas according to market demand. Entrepreneur help to develop an
economy at a large scale. They are able to analyse opportunity and develop plans to grab
opportunity.
Richard Branson
Branson is a British entrepreneur and founded virgin group. Effective skill and abilities of
Richard help them to achieve goals easily. Some characteristics of Branson that help in their
overall success are as follows
Characteristic Traits
Self motivation
Entrepreneurs need to be self motivated and able to solve their problems on their own.
Richard is self motivated and take decision on his own without answerable to anyone(Khosla and
Gupta, 2017.) . Self motivation help to dedicated towards plan and keep moving for success of
business at a large scale and improve effectiveness of product and services.
Take risk

One of the most important characteristics to become an successful entrepreneur is to take
risk. Richard Branson take calculated risk that help them to get positive return in near future.
Risk to develop business in different sectors and economies help to Branson to develop business
at a large scale.
Believes innovation
Entrepreneurs duty is to keep on innovation for growth of business in long run.
Innovation help to face competition in market easily and effectively(Higgins, Schroeter and
Wright, 2018.) . To get innovative results Branson analyse market in six months to develop new
venture to gain a market share for their business.
Flexibility
An entrepreneur need to flexible and ready to changes with requirement of market and
develop plan according to those changes. Richard have flexible thinking to find a unique and
effective solution for every problem in business. Richard aim to adopt changes to stay on top of
business.
Skills
Ability to listen
Entrepreneur able to develop positive communication with employees. Communication in
effective manner help to make employees work effectively(Mersha and Sriram, 2019.) . Richard
give their employees priority as well as chance to showcase their opinion to get creative and
innovative idea.
Ability to think differently
Unique quality of product and business help to attract customers easily. Branson able to
think in different way that help them in overall success of business. Skills to be innovative help
to develop unique and creative services for their customers. Richard maintain effectiveness of
business as well as services provided by them to customers. Managers think with data available
to them and entrepreneurs able to think in an innovative way.
Make decision
Skills to take important decision that help to expand business is one of the most effective
way for an entrepreneur success. Richard have ability to take important decision on time that
other business managers are not able to take required decision.