Entrepreneurship and Small Business Management Report - MR College

This report delves into the core concepts of entrepreneurship and small business management. It begins by defining entrepreneurship and exploring various types of entrepreneurial ventures, including small business, social, large company, public sector, hefty firm, and growth ventures, while also highlighting their similarities and differences. The report then analyzes the impact of micro and small businesses on the economy, providing relevant data and statistics to illustrate their significance. Furthermore, it emphasizes the importance of small businesses and start-ups in fostering the growth of the social economy. The report also provides background information on two chosen companies, Aston Martin and Tesco, comparing their business models and characteristics. The report concludes by examining the characteristics and traits of successful entrepreneurs, the entrepreneurial personality, and the influence of background and experience on entrepreneurship. The report is designed to provide a comprehensive understanding of entrepreneurship and its role in the business world.

Entrepreneurship and small
business management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Different type of entrepreneurial venture and also explain how they relate to the typology of
entrepreneurship..........................................................................................................................3
Exploring similarities and differences between entrepreneurial ventures..................................4
Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy. .............................................................................................................7
Explaining the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................8
Brief background information of one choosing companies........................................................9
PART B............................................................................................................................................9
Characteristics and traits of successful entrepreneurs.................................................................9
Entrepreneurial personality reflecting the motivation and mindset of entrepreneur.................11
Role of background and experience of entrepreneur in hindering and fostering
entrepreneurship........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship is referred to as the heart of any business. Entrepreneurship is in turn
considered to be as the procedure to design and run the new business (Wright and et.al., 2016).
People who in turn tends to create a business are referred to as the entrepreneurs. Small business
owners in turn are considered to be responsible for aligning and coordinating various set of
business activities who in turn are responsible for aligning various operations of the business.
This study will highlight on effectively highlighting various range of venture types who in turn
are considered to be as entrepreneurial. Furthermore, this report will also critically assess the
influence of small business within the economy. Additionally, this report in turn also investigates
the key aspects of the entrepreneurial mindset and also different environment who fosters
entrepreneurship.
TESCO corporation has started its operations in the year 1919. This company is
headquartered in Tesco house in Hertfordshire, England. This company deals in groceries, toys,
clothes, energy, home ware, furniture, etc.
PART A
Different type of entrepreneurial venture and also explain how they relate to the typology of
entrepreneurship.
Entrepreneurial venture in turn are considered to be defined as the organization who in
turn tends to focus on innovation which in turn helps in creating social value. The entrepreneurial
business in turn tends to have one of the most exponential growth within this competitive
environment. There are large number of entrepreneurial ventures which mainly includes:
Small business entrepreneurship: These are start up business which in turn are usually
run by the small number of employees and owners of the company (Morris and et.al., 2018). The
revenue generation is small in such business and the key focus is on growing clients and
developing the range of products and services offered to the customers. This type of business can
be run by the friends and family members who in turn are considered to be as the key partners.
Social entrepreneurship: This type of business key focus is on solving various different
social problems who in turn focuses on delivering the set of products and services. This type of
business fir m focuses on creating a better world and is run for profit, hybrid and non profit. It
focuses on resolving the key issues that has been taking place within the society.

Large company entrepreneurship: Such organization in turn tends to focus on creating
and manufacturing wide range of products and services to set customers in order to sustain
business for the long period of time (Santos and Morris, 2017). There has been increase trend of
competition, change in the customer trend, etc. tends to force large company to develop
innovative range of products in order to sustain in the market for the long period of time.
Public sector entrepreneurship: Such type of company are mainly backed up by the
government. The key aspect of the organization is to create innovative products which in turn is
useful in meeting the needs and requirements of the market. Such organization also gets help
from public in order to raise funds.
Hefty firm entrepreneurship: This type of entrepreneur venture tends to operate its
business with set management strategies in order to ensure that business comply with its aim and
objectives (Bertoni, Martí and Reverte, 2019). The managers of such company mainly
emphasize on proving new services and merchandise to the customers in order to sustain for the
longer period of time in the future. It helps in enlarging the longevity of the business.
Growth venture: This company is mainly connected with the continuous development of
the competitive market. The key desire of such company is to effectively contribute towards the
growth of company within the set competitive environment. Such companies tend to have an
innovative work force for future growth and development within the market.
Exploring similarities and differences between entrepreneurial ventures.
Different entrepreneurial tends to have various other entrepreneurial schemes who in turn
tends to have contrasting purpose, aim, vision and mission which in turn largely affects the
environment of the organization. The growth of the varied entrepreneurial ventures is largely
dependent on the range of products and services and its quality.
PARTICULARS ASTON MARTIN TESCO
LOCATION This company is headquartered
in Gaydon, Warwickshire,
England, UK.
This company is
headquartered in Tesco house
in Hertfordshire, England.
YEAR Aston Martin in turn has come
into existence in the year 1913
and is flourishing its business
TESCO company has started
its operations in the year 1919
and is one of the leading retail

in the market. company of UK.
OWNER The founder of the Aston
Martin company are Lionel
Martin and Robert Bamford.
The founder of the TESCO
company is jack Cohen.
TYPE OF BUSINESS Aston martin is considered to
be the public limited company
who in turn is part of luxury
goods and auto mobile
industry.
This organization is considered
to be the part of retail industry
who tends to deal with the day
to day goods and services of
the customers.
TYPOLOGY Aston martin company mainly
deals in various luxury set of
goods and is considered to be
the part of automotive section
in United Kingdom.
Tesco company is one of the
leading retail company who in
turn focus on innovating new
range of products and services
in order to sustain within the
competitive environment.
NUMBER OF
EMPLOYEES
As per 2019, number of
employees within Aston
Martin is estimated to be over
3000.
As per 2019, number of
employees within Tesco plc. Is
around 4,50,000.
PARTICULARS SMALL
BUSINESS
ENTREPRENEUR
SHIP
SOCIAL
ENTREPRENEURSH
IP
LARGE COMPANY
ENTREPRENEURSHIP
Aim and
objectives
Such organization
might not have
structured goals,
mission and
objective (Gerleve
This entrepreneurship
venture focuses on
dealing with the various
social problems and
tends to focus on
Such companies tend to
sustain for the longer period
of time within the market by
offering range of innovative
products and services with

and Flatten, 2019,
July). They tend to
attain lower revenue
and profit.
making the world a
better place.
effective marketing
strategies.
Risks The risk associated
with such firm
might be low but
there is high degree
of competition with
the same size of
company.
This risk associated with
such firm are not high
because they get support
from public and
government and is run
for a good cause.
The risk associated with the
large company
entrepreneurship is medium
because they tend to manage
high volume sales within the
target market.
Number of
employees
The number of
employees within
small business
entrepreneurship
venture is not more
than 50.
It usually depends on
the size of the company.
The number of employees
within large business
entrepreneurship venture is
more than 1000.
Structure There is no proper
organizational
structure because it
is usually run by the
sole proprietor.
It is usually considered
to be as the trustee based
company.
The organization structure
of the large company
entrepreneurship is very
complex (Cruz, Hadjielias
and Howorth, 2017). It can
be both private and public
limited.
In public sector the organization is effectively controlled directly and indirectly by the
government. Such organization tends to provide high quality of products and services to end
customers. Such organization tend to largely emphasize on the social welfare rather than on
profit making. On the contrary, corporate sector are effective venture which in turn can be run
privately and is owned by the public (Kuratko, 2016). Such organization develops effective

marketing plan in order to enhance the longevity and profitability of the company. Scalable
entrepreneurship ventures in turn are linked with the corporate sectors who in turn focuses on
sustainable development and growth which helps in gaining competitive advantage.
Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy.
Micro business is the subset of small business community based on number of workers
within firm, they operate its businesses effectively and put positive impact on economy. Small
and Micro business are vital to the future of UK, these businesses are small but their affect is
certainly anything (McKeown and et.al., 2018). They cannot be able to generate as much revenue
individually as bigger organizations, but they still play vital role in success of economy. There
are many ways that SMEs contribute to UK, they offer residential people the chance to achieve
their financial independence, create employment opportunities and encourage innovation. After
Brexit the rate of unemployment is higher, it effects living standard of local people, they cannot
be able to fulfil their needs. At that movement small and micro businesses give its effective
contribution, they give employment opportunities that enhance living standard of people rather
than before. Unemployment rate in UK has dropped to the lowest level in more than 44 years
despite rising fears over Brexit. SMEs support in this situation, their contribution become very
essential that enhance living standards of local people much better than previously. Small and
micro businesses drive growth & success and open new markets. From local outlets to small tech
companies working out of serviced offices, majority of firms in UK are SMEs. 537 million small
and micro businesses, making up 99 % of all enterprises in nation (Gholami and et.al., 2018).
There were 5.5 million micro companies with 0 to 9 staff members, which accounts for 97% of
all businesses in country. They considered as strong back supporter of healthy economy, SMEs
contribute to 51% of all turnover created by private industry, they generate a lot of employment
opportunities across the nation, small and medium businesses create a semi-skilled and group of
skilled employees to support business expansion and future industrial in UK.
The stability of nation economy relies on low employment rates, people who themselves
provide products and services earn a salary which they then spend on service and goods.
Customer spending is the key factor that most affects growth of economic and gross domestic
product. Recently, Small and medium businesses employ around 16.3 million individuals,
contributory to 60% of all jobs in UK. SMEs effectively created more over than 2 million jobs in

last five years, they were found to be specially significance to local economies of south-west
England, Northern Ireland and Wales, in these areas, small & micro business account for 70
percent of vacancies within private sector. In additional to this, SMEs businesses are specially
effective and supportive when it comes to helping local economies, they bring prosperity,
progress and innovation to areas outside of home town which facilities equal & fair distribution
of wealth and income.
Along with this, SMEs provide economy with healthy supply of new ideas and skills, and
make market area more dynamic, they adapt and response more quickly to changes in economy,
currently small and medium businesses account for at least 99.5 percent of businesses across
each main industry sector. SMEs is considered as being important to economy in UK,
government identified that they can be a key of increasing nation's productivity which has
continued to fall in current era.
Explaining the importance of small businesses and business start-ups to the growth of the social
economy.
Small business tends to largely contribute towards the growth and innovation of the
community where the business is effectively established (Lin, Murphree and Li, 2017). Small
business tends to stimulate economic growth who in turn focuses on developing various
employment opportunities to the people of particular economy. Small business in turn are
considered to be very crucial because they have the capability to quickly adapt to the changing
business environment. This in turn helps in strengthening the local economies and helps in
reducing various economic crisis. Small business also tend to contribute towards local
government by paying taxes. This in turn helps in improving the GDP of the economy and in
turn helps in developing the growth of the economy. Start- ups tend to comply with various
corporate social responsibility practices which in turn helps in enhancing the brand value by
reducing the economic problem (Cruz, Hadjielias and Howorth, 2017). Start-ups tends to play
one of the most prominent role in giving growth to the economy. This in turn results in high
degree of capital inflow within the economy. There seems to be high degree of future growth
within the economy which in turn eventually helps in creating high degree of job opportunities
within the organization. Entrepreneurs tends to play as the role of a catalyst who in turn
contribute towards the growth of the economy. It also leads to high degree of technical progress
which eventually leads to economic development and growth. Small businesses and business

start-ups contribute towards increase in per capita income and also helps in capital formation
which is very crucial for economic development (Role of Entrepreneurs in Economic
Development, 2020). Thus, an entrepreneur in turn is considered to be the creator of wealth
which in very prominent for the growth of economy.
Brief background information of one choosing companies
TESCO is one of the leading clothing brand in the world, they offer range of products
and services to people in effective manner. Company provide online Food delivery and shopping
facilities across the UK. It had opened store in other nations in Asia and Europe, countries with
TESCO outlets include Hungary, Thailand, Malaysia and Ireland. Organization has grown to
more than 3,000 stores in their core British market, managing across the number of concepts
including Superstores, Metro convenience formats, Extra hypermarkets and small express as well
as online Via tesco. Com.
PART B
Characteristics and traits of successful entrepreneurs
For the entrepreneur it is very necessary to posses some characteristics and traits which
are necessary to be possessed by the person to be successful entrepreneurs. Thus, for having
some distinct qualities differentiating from manager they need to posses some of the traits and
characteristics. These are different from that of the manager because manager is responsible for
only managing the business whereas entrepreneur is responsible for running the business (Burns,
2016).
Duncan Bannatyne- this is an entrepreneur and author and philanthropist whose business
includes hotels, spas, health club, media and property.
Characteristics Patience- this is a characteristic which is possessed by Duncan because he started its
business with selling of ice cream in a second- hand van which he purchased. With his
characteristic of high level of patience, he gradually increased the area of business and
entered in the business of Bed and Breakfast and nursing home industry. Further he
entered within the hotel and fitness club and health clubs. Currently, Duncan is owning
40 spa and approximately 60 health clubs along with assorted bars and hotels. Risk taking- this is another characteristic of Duncan wherein he tried to take the risk of
starting the business of ice cream by selling it with the van by roaming on the streets.

This is majorly because of the reason that by selling ice cream he shifted on to setting up
of Bannatyne Fitness. This was a risk because earlier it was selling ice cream and not all
of sudden it shifted to fitness (Kuratko, 2016).
Traits Persuasiveness- this is a trait of an entrepreneur and is also present in Duncan because he
is very persuasive as he is able to manage all the work to a great extent. Also, he is very
good at persuading the people to come to the hotel and spa of the hotel to have relaxed
time. Decision making- the decision making of Duncan is very good and is very fast in taking
any decision relating to the business or even personal life. This is because after starting
the business of selling ice cream he fastly decided to open a fitness centre and it was
established in 1997 (Burns and Dewhurst, 2016). Thus, because of this good and fast
decision making by Duncan he is able to manage its business with great efficiency and is
now 296th richest person in UK.
Richard Branson- this is a British business magnate, philanthropist, investor and author who
founded the Virgin group in the year 1970.
Characteristics Hard work- this is great characteristic of Richard Branson because this hard work only
resulted in high success of him as an entrepreneur. This is majorly because of the fact that
since early age Branson started working and at the age of 16 was a magazine called
Student was started. Further he established a mail order record business named Virgin
records. After this opening the Virgin brand grew with fast pace. Passionate working- this is another characteristic of Branson which make him a
successful entrepreneur because if he would not have been passionate relating to the work
then he would not be able to become a successful entrepreneur. Thus, the passion to do
some work need to be there in a person then only they will be able to work in direction of
getting success (Etzkowitz and Zhou, 2017).
Traits Confidence- this is an important trait which needs to be possessed by the person to
become successful and growing entrepreneur. This is majorly because of the reason that
if the person does not have confidence that what they are doing is correct then they will

not be able to work in proper manner. Branson is very confident in what ever work he
does because whatever task is being done by him is always correct and he is able to make
other also work in the same manner as he wants (Light, Bhachu and Karageorgis, 2017).
 Motivation- this is another trait which is being possessed by Richard Branson because he
is very good at motivating others. This is majorly because of the reason that he knew that
no person can work if they do not have any motivating force behind their working. The
motivation is a trait which needs to be necessarily being possessed by good entrepreneur.
This is majorly because of the reason that if entrepreneur will not be able to motivate
other people then no employee within their company will be able to work in effective
manner. Thus, this is an important trait which need to be possessed by every person and
entrepreneur and is present in Richard Branson.
Entrepreneurial personality reflecting the motivation and mindset of entrepreneur
The entrepreneurial personality of a person reflects their motivation and mindset to a
great extent. The personality reflects the thinking of the person and how they can react to a
situation. This personality of entrepreneur can be assessed with help of OCEAN model.
Personality is the traits and characteristic of a person which builds the overall personality of the
person. OCEAN model states that for assessing the personality of the person it is necessary to
assess the five factors over the personality of entrepreneur that is openness, conscientiousness,
extroversion, agreeableness and neuroticism. For assessing the entrepreneurial personality, the
model is applied in following manner-
Openness- This is the personality wherein the person tries to learn new things and they
enjoy try to learn new things. The person possessing this type of personality are very imaginative
and thoughtful (Cooper and Folta, 2017). This is majorly because of the reason that they are
learner and try to include their creative thinking to every aspect of the thing. The major traits of
person having open personality are varied interest, cleverness, curiosity, intellect, complexity
and many others.
Conscientiousness- This is a personality which includes degree of a person to be reliable
and prompt. As an entrepreneur it is very necessary for the person to be reliable and prompt with
every new decision they take and incur. This is majorly because of the reason that this will
increase the working efficiency of the person as an entrepreneur. The trait which the person with

conscientiousness personality are like persistence, self- discipline, reliability, resourcefulness,
energy, perseverance, planning and many other related traits.
Extroversion- This is a personality wherein people have great energy in interacting with
other people and are very outspoken person. This is majorly because of the reason that extrovert
personality people are like getting energy form other people and by interacting with them. The
major trait of people with extroversion personality are like outgoing nature, ability of
articulating, friendliness, social confidence, assertiveness, energy, talkativeness and many other
traits.
Agreeableness- This is a personality wherein the person is very friendly and
compassionate and is concerned that how well these people can get along with other people in a
team or group (Storey, 2016). The people of personality of agreeableness possess traits like
patience, humbleness, modesty, politeness, cheerfulness, trust, loyalty, kindness and many other
different traits.
Neuroticism- This personality is also referred to as emotional stability of the person and
the degree of positive and negative emotions which may arise within the person. This also
includes the general temper of the person which they are having in respect of different situation
they face in life. The general traits of people with personality of neuroticism are lack of
confidence, wariness, self- criticism, insecurity, fear, nervousness, jealousy and many other
traits.
Role of background and experience of entrepreneur in hindering and fostering entrepreneurship
The background and the experience of a person has an important role within the
hindrance of fostering of entrepreneurship within the person. This is majorly because of the
reason that the entrepreneur learns from the situations from which they come and have developed
the business. This includes a variety of factors which affect the process of entrepreneurship
which are like family background, friends, relatives, experience, education and many other
factors.
Duncan Bannatyne is an entrepreneur who was born in 1949 in Clydebank and was born
in a poor family. Duncan lived in a one room with all their family members including parents
and siblings. He used to go to Dalmuir primary school where he was excelling in arithmetic
talent. All the other students came with bicycle to school but Duncan was not having bicycle and