BTEC HNC Business: Unit 9 Entrepreneurship and Small Business Report

This report delves into the realm of entrepreneurship and small business management, examining various aspects such as different types of entrepreneurial ventures (entrepreneurial, intrapreneurship, managerial), their characteristics, and their relation to typologies like small profit ventures, lifestyle ventures, and high-growth ventures. It also explores the similarities and differences between ventures. The report further investigates the impact of micro and small businesses on the UK economy, emphasizing their role in generating employment, fostering competition, and adapting to economic changes. Additionally, it highlights the importance of small businesses and start-ups in driving the growth of the social economy. The report also identifies key characteristics, traits, and skills of successful entrepreneurs, providing examples of entrepreneurial personalities and their motivations. The report concludes with a discussion on the characteristics of successful entrepreneurs and their motivation for their work, with relevant examples to explain their foster entrepreneurship.

Unit 9 — Entrepreneurship
and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of entrepreneurship and their relation to the typology of entrepreneurship:. 3
P2 Similarities and differences between entrepreneurship ventures............................................5
TASK 2 ...........................................................................................................................................7
P3 Impact of micro and small businesses on the economy in UK...............................................7
P4 Importance of small businesses and Start-ups for growth of the social economy..................7
TASK 3 ...........................................................................................................................................8
P5 Characteristics traits and skills of successful entrepreneurs..................................................8
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset.........................9
TASK 4..........................................................................................................................................10
P7 Examples of entrepreneurship..............................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship is defined as purposeful activity of an entrepreneur. In this they try to
innovate something and wants to change the world with their idea (Takwi, and et.al., 2020).
There are different characteristics followed by entrepreneur such as hard work, self-reliance and
independence, highly optimistic and planning and organizing ability etc. These characteristics
help entrepreneur to successfully run their entrepreneurship and small business. For the report,
considered entity is Cactus which is agency growth consultancy organisation that aims to provide
advices together with market intelligence to small businesses as well as new entrepreneurs. It is
planning an arrangement of “Small Business & Entrepreneur show” for attracting addition to
guiding new businesses for starting and managing business in successful manner.
This report will examine different types of entrepreneurship ventures and also explore
their similarities and differences. It will also illustrate that how micro and small business create
impact on economy and also explain importance of small business and start-ups. This will also
determine the characteristics traits and skills of successfully entrepreneurs. In the end of the
report it will evaluate entrepreneur’s mind-set that how they are motivated for their work and
give relevant example to explain their foster entrepreneurship.
MAIN BODY
TASK 1
P1 Different types of entrepreneurship and their relation to the typology of entrepreneurship:
Entrepreneurship is said to an act of establishing business along with taking financial
risks to make profits. Similarly, entrepreneurial activity refers to practices that are undertaken by
entrepreneurs in pursuit of devising values with the help of creating economic activity. Likewise,
enterprise is a term that is used for profit business and organisation.
Entrepreneurial:
In this type of venture entrepreneur is an individual who start their business with limited
resources. This type of entrepreneurship is completely innovative and not related to any existing
business model. In this, entrepreneur take high risk to run the business. It is mainly classified in
new product development and innovation business model. In this, person has highly focused on
their idea and try to implement it and properly lead the business. Although in entrepreneurial
venture uncertainty is high and at will affects whole business and its development if some risk is
occurred.

Intrapreneur-ship:
In this type entrepreneurs are believed that lost and failure will not affect any personal
cost. Intrapreneur-ship is basically a large organization of entrepreneurs. In which they are self-
motivated and ready to do anything for their ideas. They also take initiatives to implement their
ideas with the limitation of organization. They always focus on particular issues, and they have
ability to find better solution for firm by provide innovative ideas and services. In Intrapreneur-
ship entrepreneurs are work with freedom and their main characteristic is foster behaviours and
independence for their work in an organization.
Managerial:
This venture considered the managerial organization which Manage employees and staff
members for their work and performance (Morris, and et.al., 2018). In this firm, some
employees have power to change employees work and position according to their performance.
These employees are on higher position in the organization. They guide employees for work and
ensure that they are increasing their work performance effectively. In managerial
entrepreneurship employees have responsibility for day to day work activities.
There are certain entrepreneurial ventures which are defined under:
Scalable start-up: These types of ventures know their vision, and they also have
believed on their vision that they can change the world. They attract investor by their ideas and
by their confidence. By their idea these firms create different relationship in market. This type is
mainly focused on improvement of the product and service quality.
Large company entrepreneurship: This type of ventures focuses on achieving goals and
objectives. In this type of organization, large numbers of employees are working. Their main
target is to increase their sales and rise their profitability with productivity.
These different types of entrepreneurial ventures are related to different entrepreneurship
typology such as small profit ventures, lifestyle ventures and high growth ventures. These
ventures help organization to grow their business and increase their profitability.
Small profit ventures: These ventures are not focusing on their extraordinary growth.
Its best example is small shops in cities which are run for small profits, and they have 2 or 3
employees (Sallos, Yoruk, and García-Pérez, 2017). They are an independent entrepreneur and it
helps them to take their own decision for their small business.

Social entrepreneurship: This category of entrepreneurial venture is said to a venture
that aims to solve social issues that are pertaining in society through offering suitable products. It
do not operate to make profits rather the entrepreneurial venture tend are dedicated to work for
social well being.
Typologies and their interrelation to entrepreneurial ventures:
Lifestyle typology: In these entrepreneurs’ focus is to gain high profit. They need to
achieve their objective and goals to rise their position in market. They run the business and
maintain by their own decisions based on their own lifestyle. Lifestyle ventures generally start
their business from their passion and with new idea to make profit.
High growth ventures: Basically in this, their main objective is to gain maximum profit
as much as they can. They are mainly focused on growth of the company and to achieve huge
profit. For this, they try to secretin their productivity and service.
P2 Similarities and differences between entrepreneurship ventures
There are various similarities and differences are present in different entrepreneurship
ventures such as public, private and social ventures (Lazar, and et.al., 2020). In these ventures
similarities and differences are as follows:
Basis of
differentiation
Large size
entrepreneurship
Small scale
entrepreneurship
Social
entrepreneurship
Definition It is defined as
organization which
work for making huge
revenue and have
diverse product
portfolio.
Small scale venture is
defined as
organization in which
less number of
employees are
working to earn profit
and for the growth of
the company.
This is defined as non-
profit organization
which is work for
society development
and to create change.
Goal Main goal is to make
huge proportion of
revenues and devising
brand image.
Their main goal is to
earn living for
members of family.
These ventures main
goal is to provide more
social values to the
consumers by their

services.
Example One of example of
large sized
entrepreneurial venture
is Tesco.
Davison Canners is a
small scale
entrepreneurial
venture in UK.
NHS is an example of
social
entrepreneurship.
TASK 2
P3 Impact of micro and small businesses on the economy in UK
In UK economy micro and small businesses are creating huge impact. They are very
important for the countries' economy. In UK, majority of the companies are working in micro
and small business such as local stores to small technical companies which provide local services
to the consumers. Micro and small business are backbone of the country. There are 5.7 million
micro business are operated which affects companies’ economy, driving growth, opening new
markets and provide employment in the country. In 2014, estimated 5.2 million business are
micro and small business which are created huge impact on UK economy. Small and micro
business are independent with less than 250 employees (Hardoon, 2015). In these they are
basically operated two types of business first one is household industries in these they usually
work in rural and semi-urban areas, and modern small business they are focus on innovation and
technology.
There are various ways in which small business impact on economy growth some are as
follows,
Generate employment opportunities: Unemployment creates high impact on country's
economy rate. Employment provide stability in economy rate and in UK micro and small
business are operating on large scale and it provides various employment opportunities in the
country. Around 16.3 million employees in UK are work in micro and small business.
Generate competitions and encourage further innovation: They also provide skills
and ideas to the country to make market place more dynamic. Start-ups like UBER, Airbnb etc.
are given huge impact on economy and all these start-ups are started as micro or small business.

Quickly adapt changes in economy: Small and micro businesses are independent and
customer oriented which are affected by economy changes that's why they easily adapt economy
changes and survive in that conditions as well (Peck, Jackson, and Mulvey, 2018).
P4 Importance of small businesses and Start-ups for growth of the social economy
Small businesses are improving their work performance and productivity day by day to
rise their growth in the market and also for long term development. There are different small
businesses and micro business which are directly and indirectly affect social economy. There is
various business which are operating for social well fare and for society improvement. Start-ups
and small business development play important role in growth of social economy. They provide
employment in the society as well as creative and innovative ideas create huge impact on the
society. Small business help public to develop themselves with their products and services and as
above discussed in UK majority business are small and micro business that's why their growth is
also important for the social economy. Small business is play vital role in social economy
because it includes charity based organization, non-profit organization as well as it include
cooperative organization which provide social services to the public for improvement in the
society and these companies also help in development.
Start-up provide more contribution in economic development of the country by providing
employment opportunities. It also decreases the crime because employees are busy to achieve
their target and unemployment rate is also decreased (Gumel, 2017). In now days more than
three million peoples are connected by social economy and in this small business and start-ups
are playing major roles. They are providing different offers to the society which help in social
economy they offer training and development programs which assists employees to upgrade their
knowledge and help them to provide services to the society. Small business also important in the
society because the provide service and products quickly, they also provide employment
opportunity to skilled or unskilled peoples and create healthy competitions in the market.
TASK 3
P5 Characteristics traits and skills of successful entrepreneurs
There are different traits and skills which affect entrepreneurs to stay motivated and
inspire and help them to achieve success in their entrepreneurship businesses. Elizabeth Gooch
and Tom Mercer are successful entrepreneurs that have following characteristic and skills: Some

characteristics and skills of Elizabeth Gooch which makes them different from other business
managers are as follows:
Hard Working:
This skill helps entrepreneurs to gain success in their business. Hard working nature help
them to work on their dreams and on their ideas. It also assists them that how hard work make a
path for successful business. Hard work creates positive impact on entrepreneurs' life. For
example hard-working skills help Elizabeth Gooch and Tom Mercer to make their name in the
industry.
Ability to take risks:
They must have this skill to create change in world and for successful business in the
industry. Ability of risk taking helps entrepreneurs by increasing their journey as a learning
process with including possible failures. It also assists entrepreneurs that how to become more
challenging. For example, Elizabeth Gooch along with Tom Mercer take risk and try their luck in
software industry and it gives them a result in their favour now they are the top entrepreneur in
UK.
Proper Planning:
Decision-making and proper planning help entrepreneur in effective management and
growth in their business and employee performance. It also gives benefits to the company such
as effective management help employees to increase their working ability and productivity and it
also rises profitability. For instance, Elizabeth Gooch together with Tom Mercer have created
their name in top entrepreneur list with their best management skills and proper planing.
Creativity:
For become successful entrepreneur and to make their position in industry entrepreneur
must have creativity skill. This skill helps in competitive advantages as well as it also provide
customer attraction and uniqueness in the industry. Tom Mercer and Elizabeth Gooch have
characteristic of creativity with the help of which the entrepreneur have established an enterprise
in complex scenarios.
Self Confidence:
This characteristic help entrepreneur to believe in themselves and their ideas. It also
beneficial for entrepreneurs to done their tasks easily and it also helps them to complete their
target and objectives effectively. Elizabeth Gooch and Tom Mercer are self confident

entrepreneurs as they have understood self and worked confidently to make a name in the
market.
Money Management:
It is most important trait for entrepreneurs because it assists them in their financial
management (Shabbir, and Muhammad & Kassim, 2019). This characteristic also helps them by
providing proper guidance and information about their investment and about their financial
management. Through money management trait, Elizabeth Gooch and Tom Mercer have
established and is managing an enterprise which prides itself to execute programmes.
Adaptability:
This skill provide opportunities to the entrepreneurs to work in any environmental change
in business and it also helps to create constant profit for the company without affected by any
internal and external factors. Elizabeth Gooch and Tom Mercer have adaptability characteristic
as with this, the entrepreneur have monitored and adapted changing scenarios of external as well
as internal environment.
All these characteristics and skills are extremely helpful for top entrepreneurs in UK such
as Elizabeth Gooch and Tom Mercer for their successful business and to get the name in the list
of top entrepreneurs in the UK.
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset
Entrepreneurs personality reflect by several factors and these factors help them to create
their positive mindset and stay motivated towards their goals and dreams. Ocean model of
personality reflects widely on entrepreneurial mindset as well as motivation. It includes five
personality traits that are discussed in context to Elizabeth Gooch and Tom Mercer below:
Openness: It involves imagination and insights (Shepherd, and Patzelt, 2018). In
relevance to Elizabeth Gooch and Tom Mercer, both these entrepreneur is high in openness as as
they have wider range of interests. Both are curious for things pertaining on the globe and eager
for learning together with enjoying new experiences that reflects on their motivation and
mindset.
Conscientiousness: It comprises of high levels of good impulse control, objective
directed behaviours as well as thoughtfulness. Elizabeth Gooch together with Tom Mercer are
highly conscientious personalities which shows their aspects to organise working and mindful of
details. Both these, plan future and put focus on things that affects others.

Extraversion: The trait is characterised by excitability, assertiveness, sociability and
emotional expressiveness. Entrepreneurs such as Elizabeth Gooch and Tom Mercer are high in
extraversion as they gain energy through social circumstances. Both these prefers to being
surrounded by other people as this makes them feel excited addition to energised.
Agreeableness: It comprises traits of affection, trust, kindness addition to various other
prosocial behaviours. Entrepreneurs like Tom Mercer along with Elizabeth Gooch are highly
agreeableness personalities because they tend to work in cooperative and competitive
environment in which they care about others, enjoy contributing in happiness as well as guide
others that reflects on their motivation for enterprise.
Neuroticism: It is featured as emotional instability, sadness addition to moodiness.
People that are high in neuroticism generally faces anxiety, sadness, mood swings, etc. However,
people that are low in neuroticism are more emotional resilient addition to stable. In context to
Elizabeth Gooch and Tom Mercer, these are low in neuroticism as they easily deals with stress,
feels relaxed, emotionally stable and rarely feels depressed.
TASK 4
P7 Examples of entrepreneurship
Entrepreneur refers to any individual who wants to establish their own business and bear
all the risk alone and also enjoys the profits.
Elizabeth Gooch
It is an entrepreneur who have been listed in top female entrepreneurs list. Elizabeth is
founder of EG Solutions that is a small enterprise which sells operations management software.
The personality have initiated working for HSBC Bank at the age of 18. However, left the job
after 1 year. Later, after 8 years, Gooch have started her own business that is EG Consulting. The
personality have met with famous personalities which have changed things dramatically. Family
members of Elizabeth have supported her in all times that have fostered their entrepreneurship to
great level.
Tom Mercer
Tom Mercer is a graduate student of Cambridge University who have spent days in
dreaming about ideas of business. As city worker, the personality have looked towards huge
options for lunch as well as dinner. Prior to going for work, Tom have blended smoothies
addition to oats for breakfast in Waterloo. Due to certain consequences, an idea of starting own

business have lighted up in brain of Tom Mercer that was to pre prepare blend and sell it to
commuters from trains, bus station and other locations nearby London. The business idea was
MOMA which born in the year 2006. Tom have worked very hard to establish and run the
venture. Their hard work has really payed them well as MOMA team had grown with time and in
the year 2009, team of 25 people have managed it very well. Tom and the whole team share
ideas for further expansion beyond London to sell with connections to Ocado which is leading
internet retailer of UK.
From both the stories of entrepreneurs it can be said that hard work and devotion towards
the goal can only lead an individual towards the success.
CONCLUSION
After analysing the entire report, it can be concluded that the report speaks about the
entrepreneurial venture. This report states about the different types of entrepreneurial ventures
and their importance is also mentioned in this report. Besides this, how micro and small
businesses impacts the economy is also defriending in this report. To prove the impact of micro
and small business in the economy, there are some statistical data also mentioned in this report.
Besides this how these small and business and start-ups helpful in the growth of the social
economy is also described in this report. Apart from this what are the skills should be in the
entrepreneur so that they get success has also been elaborated in this report. How entrepreneur
motivates other is being mentioned in this report. This report contains examples of successful
entrepreneurs, which can be a motivation of others.

REFERENCES
Books and journals
Takwi, F., and et.al., 2020. Entrepreneurship and Small Business Management: Critical Success
Factors of Entrepreneurs and Small Business Managers.
Morris, M.H., and et.al., 2018. Distinguishing types of entrepreneurial ventures: An identity-
based perspective. Journal of Small Business Management. 56(3). pp.453-474.
Sallos, M.P., Yoruk, E. and García-Pérez, A., 2017. A business process improvement framework
for knowledge-intensive entrepreneurial ventures. The Journal of Technology Transfer.
42(2). pp.354-373.
Lazar, M., and et.al., 2020. Entrepreneurial team formation. Academy of Management
Annals. 14(1). pp.29-59.
Block, J.H., and et.al., 2020. The entrepreneurial finance markets of the future: a comparison of
crowdfunding and initial coin offerings. Small Business Economics, pp.1-18.
Peck, F., Jackson, K. and Mulvey, G., 2018. Regulation and growth-oriented small businesses in
North-West England. Journal of Small Business and Enterprise Development.
Gumel, B.I., 2017. Critical challenges facing small business enterprises in Nigeria: A literature
review. International Journal of Scientific and Engineering Research. 8(8). pp.796-808.
Shabbir, M.S. and Muhammad &Kassim, N., 2019. Entrepreneur as an Individual Review of
Recent Literature on Entrepreneurial Skills. Opcion. 35. pp.582-599.
Shepherd, D.A. and Patzelt, H., 2018. Entrepreneurial cognition: Exploring the mindset of
entrepreneurs. Springer Nature.
Hisrich and et.al, 2017. Entrepreneurship. McGraw-Hill Education.
Online
Hardoon, A., The importance of small businesses in the UK economy. 2015 [Online]. Available
through: <https://smallbusiness.co.uk/the-importance-of-small-businesses-in-the-uk-
economy-2492626/>
Hayes, A, 2020 Entrepreneur., [Online]. Available through:
<https://www.investopedia.com/terms/e/entrepreneur.asp>