Unit 9: Entrepreneurship and Small Business Management Detailed Report

This report examines various aspects of entrepreneurship and small business management, covering different forms of entrepreneurial ventures, including established companies, social ventures, and high-growth firms. It analyzes their interrelation to the typology of entrepreneurship, highlighting similarities and differences. The report delves into the impact of small and micro businesses on the economy, providing statistical data and discussing their importance for the growth of the social economy. Furthermore, it differentiates the skills and characteristics of successful entrepreneurs from other managers, exploring the influence of personal background and experience on entrepreneurial ventures, and how these factors affect both positive and negative outcomes. The report uses examples such as Sainsbury’s and Facebook to illustrate key concepts and provides a comprehensive overview of the subject matter.

Unit 9 Entrepreneurship and Small
Business Management
1

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1- Forms of entrepreneurial ventures and their interrelation to typology of entrepreneurship
................................................................................................................................................3
P2- Similarities and differences between entrepreneurial ventures.......................................4
M1...........................................................................................................................................6
D1...........................................................................................................................................6
LO 2.................................................................................................................................................7
P3- Statistics and data related to impact of small and micro businesses on economy...........7
P4- Business start up and small ventures importance to growth of social economy..............8
M2...........................................................................................................................................9
D2...........................................................................................................................................9
LO 3.................................................................................................................................................9
P5- Differentiating skills and characteristic traits of entrepreneurs from other ventures
managers.................................................................................................................................9
M3.........................................................................................................................................10
D3.........................................................................................................................................10
M4 Analysis of link between charcterstics and influence of personal background and
experience to entreprenuers..................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Entrepreneurship is defined as readiness and capability to create, organize and manage a
venture company, along with any of their uncertainties to make a profit rather than before. The
most prominent example of this term is beginning of new companies. It can be consider as
extraction or innovation of value. The term is viewed as opportunity, which may recognize other
values than simply economic ones. In economies, it connected with capital that can generate
profitability. The current assignment will explain different forms of entrepreneurial ventures, and
their link to typology of entrepreneurship. This study will define similarities & differences
between entrepreneurial businesses and also describe impact of small & macro ventures on
different levels of economy in the world. It will explain importance of business start up and
small firms to progress of social economy. Furthermore, this report will justify skills,
characteristics traits and motivational drivers of successful entrepreneurs. It will clarify
experience and background influences on entrepreneurs, both negatively & positively.
LO 1
P1- Forms of entrepreneurial ventures and their interrelation to typology of entrepreneurship
Established company-
An established venture is one that has obtained a reputation for particular goods,
procedures, services and platforms (Freytag, 2019). Well established and famous companies such
as Sainsbury’s are famous across their home town as they have strong customers base and
excellent performance in market where they are operating.
Small size social venture-
These types of ventures such as funeral care are known for providing social care services
to local people who needs their help and support (Bernardino and Santos, 2017). They are unable
to provide services all over the world, but still efforts to contribute nearby people. For example,
funeral care provides funeral plans which permit individual to plan and prepare for his or her
memorial service in advance.
Big size social organization-
Companies that fall under this category are able to cater their health and social care
services in wide area, where needy people need their support. For example, Nuffield health is
one of the best big size social organizations in the United Kingdom and one of the biggest health
care charities.
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High growth firm-
There are many firms in the world of business who has greater consumers base, high
income sources and excellent quality of products or services, which they especially produced for
their target market or customers. Facebook is one the best examples of this category (Kreiss and
McGregor, 2018).
Typologies-
Managed growth companies-
These organizations are capable to manage their business operations and functions
through which they can progress even better in market or sector where firms operating
(Cucchiara and Su, 2018). Sainsbury’s is considered as managed growth supermarket, who
serves their services and delivery products with the help of skilled workforce.
Aggressive progress organizations-
An organization that efforts to increase profit margins, productivity, sales, revenues and
become global leader is consider in this category. Facebook can be recognize as aggressive
company who want to grow rather than before and invest to achieve their goals.
Social enterprises-
These firms are ventures created to further a social aim in a financially sustainable
manner (Molecke and Pinkse, 2017). Social companies like Nuffield health promote & maintain
healthcare and health of all descriptions and help to prevent life of human beings.
Survival firms-
Those organizations who survive in business world due to lack of financial capability,
limited market growth and lack of human capital face a lot of challenges. Funeral care is a
survival company.
P2- Similarities and differences between entrepreneurial ventures
Similarities-
It can be said that, there are different types of entrepreneurial ventures operating and
managing businesses operations in market (Proksch and et.al., 2017). They all are similar on the
basis of few factors, for example, creative ideas. Either small or large, all companies attempt to
develop an innovative idea or tactic which they can use to earn profit even better. Most of
entrepreneurial organizations have strong will, which makes them able to drive their sales rather
than before and allow to achieve short and long term objectives or goals.
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Differences
basis
Established
company
Small size social
venture
Big size social
organization
High growth
firm
Technology
investment
It can analyse
that these types
of companies
have power to
make investment
in advanced
technologies,
which they can
utilize to gain in
future as well as
current benefits.
As compare to
other
entrepreneurial
ventures like
Sainsbury’s,
small size social
organizations
could not capable
to make
investment in the
latest
technologies for
any operation.
These kinds of
companies such
as Nuffield
health, are
interested to use
technologies but
not for producing
products but for
improving health
of people. So
they invest for it.
These forms of
organizations,
highly invest in
technologies as
compare to other
ventures
(Ciffolilli and
Muscio, 2018).
Source of
finance
The way of
finance is also
different; they
can use bank
loans as source
(Chen, He and
Liu, 2020).
Good old debt is
one of the best
funding or
financing sources
of these firms,
which they use to
run operations
effectively.
As compare to
others, big size
social companies
organize charity
events and take
donations
through which
they get finance.
Venture capital,
angels and
subsidies are the
main source of
high progress of
firm like
Facebook.
Managerial
style
They used
autocratic
management
styles to manager
work and
performance of
staff as well as
business.
These types of
firms follow
collaborative
management
style because
they have to
work in
collaboration.
Transformational
management
style can be
followed by
companies.
Managerial style
of high growth
firms is different
from other types
of ventures, they
have democratic
or authoritative.
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Annual growth
rate
They can earn
profit more than
293 Million after
selling quality
products or
services. It is
much high than
small size social
venture.
Annual growth
of these
organizations is
148 Million.
Their progress is
much wider than
small size forms;
it is 34% extra
than them.
Annual growth
of these ventures
is 37.5% than
other companies.
M1
Entrepreneurship is the procedure of discovering new and innovative ways of combing
resources. When value of market generated by this combination of assets is greater than market
value these thing can increased elsewhere individually, the business man make a profit (Bertoni,
Martí and Reverte, 2019). In each entrepreneurial venture, an entrepreneur is accessible who
manage his or her business activities. Small size social company, big size, establish and high
growth organizations are the diverse range of entrepreneurial firms, in which some belongs to
public and some corporate sectors. They all act according to their industries management
framework and regulations in effective manner.
D1
All above entrepreneurial ventures are different from each others; they all have different
development bases, scope and growth. For example, scope to small size social companies is less
than big size social firms, as they are able to cater services nearby local areas not much than it,
which is better for their business. But not appropriate for their growth as they need to enlarge
their service range which in return increase their profits margins. Furthermore, establish firm
progress less than high growth companies because they less invest in technologies, but still
manage operations in market. All the elements are based on adaptability of organizations.
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LO 2
P3- Statistics and data related to impact of small and micro businesses on economy
Microenterprises term also known as micro business that employs a small number of
workers, who are able to deliver products or services to local people nearby stores or grocery
shops.
Small companies or ventures are defined as one that does not have a high turnover as
more than £ 6.5 Million and a balance sheet total of much than £ 3.30 Million. These types of
organizations could not have more than 50 workers, who work for them.
Both these businesses puts positive impact on economy by providing employment as key
resource of managing living standards of local people who do not have specific job and work for
any company. For instance, small ventures are autonomously functioned and owned in areas of
procedure. They provide employment opportunities to people who live in their home town, total
employment in these firms at United Kingdom was 15.7 Million that is more than 60% from
private companies, it affect at local level and regional.
In micro size firms, entrepreneur have 0-9 applicants, approximate 5.4 million micro
sectors in nation, this only takes 96 percent of all industries in the London, UK. Within this type
of ventures, approximate 300 candidates are being chosen in their respective areas where as only
10 workers besides micro companies that presents that there is limited chance of a vacancy. It
can be said, number of sectors are emerging in recent time, which in return increased chances for
youth as well. Small sizes enterprises are putting excellent and positive impact on growth of
economy, as compare to medium. 99% of total ventures are made from small medium sizes.
Figure 1SMEs Growth Rate
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(Source: Economic Survey, 2019)
They provide benefits in term of increasing GDP that helps to improving economic status
and support in context of growth and development rather than before, especially after Brexit. For
example, when local people and potential buyers patronize local small shops, they are
significantly giving money back to their community. Thriving home ventures can generate high
degree of revenue that means that SMEs can pay higher taxes, including local property taxes.
This money is then can be used for fire departments and other social services as well as
development of economy, all these things shows impact of above businesses at national level.
P4- Business start up and small ventures importance to growth of social economy
In the whole world, there are many small and start up business that are providing their
services and delivering products in market, which is beneficial for them. Along with this they are
contributing in context of social economy progress by creating employment and innovating
something new trends. Start up companies at beginning days faces competition from existing
players. To gain competitive advantages they decide to hire skilled & talented applicants who
have appropriate skills and knowledge relate to work, which is really very important (Peck,
Jackson and Mulvey, 2018). This opportunity can improve living standards of local people and
their families as well who needs support to live life better than other people’s. It can be said that
start-ups and small ventures progress rate have a wide affect on economic situation of UK.
Growth of companies counts development of nation. Furthermore, the growth can be
measured in term of total amount of profits generated by these firms. It is one of the effective
measuring tools to consider economic condition of nation because that is proportional to social
economy, employment level. When any venture generate employment rate over the era; it mean
they boost number of goods as well, productions, development and contribution towards
community (Jamal, 2018).
Start up and small business by developing employment chances for unskilled people
along with knowledgeable, provides important contribution in regard to social economy. When
an entrepreneur starts, manage and grow a small firm then she or he helps society, government
and country to reduce unemployment issue.
They change the life style of people by providing good amount of salary to those who
work at different positions in order to achieve set aims and objectives of companies.
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M2
From above discussion, it has been analysed that small, big and medium size companies
are making effective contribution to economy. They generate more employment as compare to
large organizations as data stated 99% small and medium size ventures in United Kingdom and
only one percent based on large companies (Mohagheghi-Fard, 2019). Employment rate directly
points out manufacturing rate of items and catering services to target market.
D2
It can be evaluated that small companies have a positive and effective impact on different
levels such as local, national and regional in term of increasing employment rate, GDP,
generating profitability and revenues rather than before, which can be used for social benefits
and economic development. It increases competition level that is quite beneficial for economic
growth at put impact at international level, where SMEs can generate more revenue.
LO 3
P5- Differentiating skills and characteristic traits of entrepreneurs from other ventures managers
A successful entrepreneur has varied abilities, essential skills and beneficial traits which
make him or her more stronger to manage business operations in effective manner. His or her
characteristics are very different from managers. For example, Business man have ability to take
a risk, they can start new business includes a considerable amount of failure challenge. But
manager would not be able to do that because; he or she has limited responsibilities that restrict
them to perform out of it (Østergaard, 2019).
Successful entrepreneurs are indeed born and they need to implement their characteristics
a different manner, while manager is made not born who can apply their traits in limited way.
Business man can make innovation and have interpersonal skills such as decision making,
without taking approval from anyone they can take judgment relate to business, which manager
cannot be taken.
For instance Issa brothers are the owner of ASDA’s, he is able to take decision for
business growth and have ability to develop innovative idea which he can implement without
taking permission. These thing managers in any company could not do that means he or she is
different from successful entrepreneurs.
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ASDA owners can make changes within their operational and functional units
which turn into increasing profitability and productivity, but managers cannot be able to do this
thing as they only accomplish work stated in their job contract nothing more than it.
M3
Each and every organization in business world efforts to gain competitive advantages
which in return strength their brand image in market more than other players. Organizations to
gain high market position and all benefit needs to become an online influencer.
D3
It can be analyse that experience level, knowledge, abilities, background, family status
and other things are included in list of motivational drives that motivates and encourages person
to become successful entrepreneurs. Their traits and skills such as interpersonal, creative and risk
taking make them different from others.
P6 Aspects of entreprenuial personality reflect motivation and mindset
There are various aspects of entrprenuiual personality which reflect motivation and
mindset within working aspects for gaining effective performance paradigms, onto where there
can be analysis developed onto how various new goals are framed. It can be analysed by
understanding how reflection of motivation and mindset enables to gain wider working
objectives within longer run in entrepreneurs:
Building on new vision by training management among employees: It could be understood that
leaders and entrepreneurs are working with new strong vision for training employees in
management it enables to yield stronger working force among all training scenarios. New vision
develops working force among wider domains within employees where they are able to get
influence form leaders working personality and all over dynamic personality is explored.
Training and development of all employees within company parameters can be understood as
highly important and solely required for greater functional growth within longer productivity
periods, for gaining stronger working synergy and to yield focus onto how new decisions are
framed.
Intelligence and strong vision: When entrepreneur are working with high intelligence and strong
vision all working paradigms are effectively evolved which integrates new working technical
efficiency within longer run and also potentially brings forward wider new learning potentialities
among management. This is not only highly important for gaining goodwill within competitive
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growing dynamic industry networks but also there is wider new working profits maintained onto
larger parameters which enables to keep all employees also motivated. Intelligence and strong
vision has been understood as main parameter within working operational efficiency where all
entrepreneurs aim to bring on new working effectiveness among management, leverage focus
onto wider levels and potentially brings forward wider motivating strengths among management.
Clear content with strong time management: This enables us to understand that when all
employees are working with clear content vision and purpose to bring on required working
details it enables management within company to be strongly managed with speculated time
period. The aspects of entrepreneurial personality has direct impact on working synergy within
management for regaining higher motivation and dynamic skills for gaining new working
efficiency which also potentially brings forward higher stronger retaining workforce. This is the
base management through which working efficiency can be inbuilt within longer run and
developed within wider levels by bringing on corporate efficacy onto wider levels.
D4 Analysis of background and experience influence on entreprenuers
The background, nationality and career experienced by entrepreneurs have strong working
influence onto entrepreneurs working growth and how various new parameters can be reached on
within their working effectiveness in widely dynamic competitive industry levels where various
new changes needs to be implemented among longer run. This can be understood by analysing
by understanding that leaders and visionary working scenarios within their skills can be formed
by company within longer run by analysing how they have experienced new working goals and
leveraged focus onto how longer run customer strength can be created among wider levels.
P7 Background and experince hinder or foster entreprenurship
The background and experiences hinder or foster entrepreneurship success within longer
time period can be understood as one of the major factor which needs to be analysed by
understanding how history, career and starting up business experiences enable to generate
stronger working synergy among employees in companies. Skills and knowledge obtained
among company standards are widely important for gaining new functional efficacy within
longer run and for developing wider decisions with strong advanced competitive knowledge of
new working criteria within dynamic growing industry level.
 Jack Ma is one of the most globally recognised successful leader and entrepreneur who
started his business from Alibaba e- commerce company by bringing forward his vision
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into action among working criteria with strong passion , determination and high
willpower to generate advanced customer services and products competitive within
demand in retail industry (Browder, Aldrich and Bradley., 2019). Jack Ma history and
background experience enables us to evaluate that he faced various challenges within
working and establishment where he faced lots of rejections for his new ideas and
innovative thinking synergy. He was highly motivated with determination, charisma to
pool on decisions with correct working phenomenon and wider working aspects which
further generated varied strategies within company business scenarios. Jack Ma has been
innovatively progressing onto various parameters by focusing onto wider creative
dynamic strengths for gaining new technical progression and to yield focus onto wider
new working paradigms for competitive diversity.
 J. K. Rowling is one of the most globally recognised entrepreneur and successful writer
whose background and experiences within personal life brought various business
challenges within working behaviour and also function with new regenerated stronger
synergy. This can be understood as highly important domain for generating new
competitive growth among wider working goals where her passion for writing novels
enabled her to become one of the most successful and richest writer within world. She
had tough childhood and adult period where various working failures and challenged
were found to be most challenging period in her professional career. There were various
experiences which hindered growth among working aspects and new technical goals to be
competitively achieved for gaining strength within working parameters and for
generating wider innovation within longer run. This enables us to understand that how
background and working strength among history within entrepreneur enables businesses
to form new technical progression among wider domains.
M4 Analysis of link between charcterstics and influence of personal background and experience
to entreprenuers
The link between characteristics and influence of personal behaviour within experiences
to entrepreneurs is highly crucial for analysing how various new functional progressions takes
place within business growth goals and to pertain focus onto new regenerated growth goals.
Personal behaviour, skills and integrity for learning new functional abilities are highly important
for developing new functional synergy and to highly evolve as one of the major growth goals to
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enhance working scenarios within new paradigms. Any negative or failure may hinder
productive growth within business as it may impact working aspects and also on other hand
passion and determination can enable to grow productively (Champenois, Lefebvre and Ronteau,
2020).
CONCLUSION
From above analysis, it has been concluded that established, small size social business,
large size social company and high progress organization by following their aims and objectives
are achieving desire outcomes in effective manner. It has been analysed that micro and small
companies are providing a lot of benefits to economy, which are quite beneficial for them as well
as others like local people who get jobs. Small ventures and start ups companies contributed in
growth of social economy by providing innovative and creative products or services in
systematic manner. Furthermore, it has been summarized that with appropriate skills and traits a
person successfully become entrepreneurs and made them different from other venture managers,
which is really very good for them. Family status, background, abilities and other motivational
drivers, motivate a business man to achieve their personal and professional aims. It has been
identified that experience and supports of family members some time hinder or foster successful
entrepreneurship either women or men.
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REFERENCES
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Economic Survey. 2019. [Online]. Available Through: <
https://www.bloombergquint.com/union-budget-2019/economic-survey-2019-makes-a-
case-for-large-firms-and-not-dwarf-msmes>
How Important Are Small Businesses to Local Economies. 2018. [Online]. Available Through: <
https://smallbusiness.chron.com/important-small-businesses-local-economies-
5251.html#:~:text=Small%20businesses%20contribute%20to%20local,be%20employable
%20by%20larger%20corporations. >
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