ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT - Report and Analysis

This report on entrepreneurship and small business management explores various aspects of entrepreneurial ventures. It begins by defining different types of ventures, including small enterprises, scalable start-ups, large enterprises, and social enterprises, and analyzes their similarities and differences. The report then assesses the impact of micro and small organizations on the economy, citing statistics and data on employment and turnover. Furthermore, it explains the importance of small businesses and start-ups to the growth of the social economy, highlighting their role in job creation and economic stability. The report also identifies the characteristic traits and skills of successful entrepreneurs, differentiating them from other business managers, and assesses how personality aspects reflect entrepreneurial motivation and mindset. Finally, it examines how background and experience can hinder or foster entrepreneurship. This report provides a comprehensive overview of entrepreneurship, covering different types of ventures, their impact, and the traits of successful entrepreneurs.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of entrepreneurial ventures and their relation to typology..........................................1
P2 Similarities and dissimilarities between entrepreneurial ventures.........................................2
TASK 2............................................................................................................................................3
P3 Impact of micro and small organisation on economy............................................................3
P4 Explain the importance of small businesses and business starts-ups to the growth of social
economy......................................................................................................................................4
TASK 3............................................................................................................................................5
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers............................................................................................5
P6 Assess how aspects of the entrepreneurial aspect's personality reflect entrepreneurial
motivation and mindset...............................................................................................................6
TASK 4............................................................................................................................................7
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship..........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship and small business management plays a vital role in establishing
stability in society and promoting economic development. These are the ventures who works for
different purposes but are beneficial in making easy availability of products and services. The
report will evaluate types of entrepreneurial ventures and their typology which will assist in
defining their pattern of working. Besides, it will demonstrate data and statistic which will reflect
impact of micro and small business on the economy. In addition, it will derive traits and skills
which is required for entrepreneur to manage successful business functions. Thus, it will identify
example which will determine effects of background and experience on entrepreneurship.
TASK 1
P1 Types of entrepreneurial ventures and their relation to typology
Entrepreneurial ventures are key to societal development and therefore the country
promotes the growth of different ventures and start up plans. Growth of small business firms
helps the society by enabling easy availability of products and services. However, entrepreneur is
an individual who is focused on serving customers satisfaction a by making innovation in
services on the basis of changing trends. Generally, there are four types of with significant
typology which is described under:
 Small Enterprises: These are generally the star ups and initial business plans which
came into existence with increasing needs of society. These business are run by single
person or group of people which can be either family, friends etc. the venture is started by
person with the motive of earning money and establishing own existence in society. It is
based on individual efficiency in capital investment and is considered risky process,
because attracting consumers to star up is long term process (Amato, Baron and Pierro,
2017). It is an enterprise which own very few workers and have limited sales. Thus, small
ventures are operated under partnership or sole proprietorship.
 Scalable start-up enterprise: This is the new ventures which has emerged with new
products and services to establishing competition. Theses are the ventures which aims at
grabbing market place just after existence. However, to develop strong image in the
establishes use of model before entering into market. The models are used by
organisation are generally consumer centric and innovative. These entrepreneurs start up
plan with complete market research which assist the person in managing successful star-
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up in competitive industry. Thus, these ventures are based known as innovation cluster,
small percentage, risk capital and generally sole proprietorship.
 Large enterprise: These are the companies who already have strong market existence a
share. The concept of large enterprises is focused on increasing consumer based by
making highly creative products by keeping a check of changing market trends and
consumer requirement. Apparently, the organisation already holds competitive position
and therefore, it is important for these enterprises to just maintain leading position by
serving satisfaction to key stakeholders which comprise, suppliers, shareholders,
employee and customers.
 Social enterprise: Theses organisation are also known as non profit business because the
ultimate motive by theses ventures is to serve social welfare and well-being. The firm
creates their services keeping in mind the needs and wants of society (Saleem, 2017).
Nevertheless, the funding social firm are based on sponsors, charity, donation etc. It
involves no risk because it does not own capital investment.
P2 Similarities and dissimilarities between entrepreneurial ventures.
Differences
Social entrepreneurship ventures measures their success with response of society on
specific idea whereas the other enterprises analyses their success by calculating profits. The
planing and innovation by social ventures are focused on societal benefits and changes with no
concern of making profits. Apparently, large scale and small scale organisation develops their
plan and idea more feasible with the motive of services consumer satisfaction and generating
profitable returns. Profits is secondary of social firm whereas it a priority of scalable start-ups
and small scale business. Similarly, the major different in social ventures and small and large
scale enterprise is the calculation of success where social firm evaluates their achievement by
analysing people who are actually supported ad are supporting social services (Nabi, Liñán, and
Walmsley, 2017). Nevertheless, other entrepreneurial ventures denotes accomplishment by
measuring returns and revenues. In addition, decision making styles of social and private
enterprises are completely different because the decision of social firm are based on volunteers,
interest of society and sponsors where decision of private organisation are based on interest of
stakeholders and generating returns. The pricing strategies of enterprises ensures companies
returns with consumer satisfaction.
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Similarities
The foremost similarity between organisations is use of sustainable model where the
focus of ventures is to innovate something new and creative for society. The ultimate focus of
enterprises is based targeting maximum consumers. According to venture buyer are their asset
and their services needs to be based on their neds and wants therefore every firm evaluates the
costumer requirement and changing trends of market. Similarly, the ultimate goals of
management of social, large, scale and small business is to maximize business in and increase
market share to maximize returns where returns can be different for every venture. The firm the
focused on competing with each other in accordance to market realities. Every enterprise is
focused on attaining competitive advantage in order to managing successful business operations.
Apart from this, marketing strategies used by entrepreneurial ventures are almost same like
social firm implements the use of social media advertising to promote their social welfare plans
in which the focus of organisation is to seek for volunteers and to serve needy people. Whereas
focus of other organisation during marketing is to increase costumer base by creating awareness
about their products and services. The management style of enterprises are relatively same like
recruitment and selection process, innovation models, business strategic analysis and
determination of consumer response.
TASK 2
P3 Impact of micro and small organisation on economy.
Managing functions of small business is quite challenging for an owner because the
management needs to focus on various factors such as consumer, profits, risk of capital
investment, competition, market trends etc. UK governments supports the growth of small and
micro enterprises because according to economic condition the increasing SME's have increased
contribution in economic development. The increasing small organisation in creating
employment opportunities which has assisted in enabling employment opportunities for various
skilled unemployed labourers. As per (Taylor, 2015), it has been derived that in 2014 there were
5.2 million small firms. In accordance to economic power house there are numerous organisation
who are employed with 10 people which has accounted for 19 % turnover and 33 %
employment. As per forum of private businesses sit has been derived that small business has
created 15.2 million jobs which has developed opportunity for various people. In addition,
SME's with 10 employed people are growing immensely and it has grown to 5 million
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enterprises till 2000. However, as per society star ups are core for business plans for people
above 40 years who can not work for some other firm due to age. The increasing opportunity and
support by government has motivated society of managing their firms regardless of any
differences. Thus, it can be said that support from government has created boom for small micro
enterprise. Nevertheless, as per business population estimation it has been derived that:
 Approximately 5.2 million private ownership firm has started their business in 2014 and
its is still growing and has crossed 5 million.
 76 % of organisation are non employers.
 The overall population of SME comprise 1.5 million firms, 46000 self employed
partnership and approximately 3.3 million emerged as sole proprietorship (BUSINESS
POPULATION ESTIMATES FOR THE UK AND REGIONS 2014, 2014).
 5.2 million enterprise created 48 percent employment opportunities which makes it
figures of 12.1 million people.
 The overall turnover of small firm was recorded as 1.2 trillion pound in which 33 percent
was of private small organisation.
 The growth has led to 31000 medium size organisation who had overall turnover of 480
pounds. Further, it created employment opportunities for 3.1 million individuals.
Thus, the ration and percentage of statistics by business population estimation and contribution
to economy of UK, has been determined that SME's have boomed the growth and the firms
emerged as successful entrepreneurial ventures who have become huge support to economic
development by their contribution.
P4 Explain the importance of small businesses and business starts-ups to the growth of social
economy.
A SME or a business start up plays a very crucial and deep role in management of the
operations on the social balance in a society and growth of economy of a nation. This helps in
better growth of the wellness in society. The major advantage of having a good number of SME's
and start ups ventures in a country is beneficial for it economy. They are the largest employers
and thus cover a good amount of work force that help in effective revenue generation. On the
post Brexit phase, there was a turmoil that has created a disturbance on economic and social
front of the nation (Mariotti and Glackin, 2014). The separation from EU was a major decision
that impacted the economic operations of the SME's and other businesses. But this condition
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created a big opportunity for the new trades and gave a chance of getting necessary foreign
investments that impacted the operation of company in a better way. This small businesses and
start ups will be the biggest employer to local as well as international work force, providing UK
a chance to get sustainability on global market level.
They are also beneficial because the revenue generated is been distributed in form of
profit, taxes imposed by government and other expenses that will impact the operational
capability of company in a very significant manner. This firms will take the necessary socio
economic decisions that will help in suitable rise in satisfaction level of the customer and will
help the organisation to get the suitable support from government to grow and develop. The tart
ups will attract the investors from local stage a well as global level which will increase the
currency reserve of the company, and help UK to gain a good economic stability. Other than this,
the adoption of latest and global culture and working with work force with different social and
cultural background improves the quality of work environment and hence increase the
operational capabilities and cultural acceptance within the firm. It will support a good growth of
company and will support a better success for a SME's or a business start ups (Schaper And
et.al., 2014). Thus, this firms have made UK a major destination for setting up of start ups and
businesses. Also, it will provide a vital support to the falling economy of the nation and improve
its performance.
TASK 3
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.
The successful entrepreneur's possesses certain qualities and traits that differentiate them
from rest of business managers. These traits and attributes help them to et up a successful
enterprise and have a financial stability in market. The major entrepreneur's like Steve Jobs,
Richard Branson, Jack Maa and Mark Zuckerberg etc have these traits in common which make
them, stand out and high than rest of others (Burns, 2016). Some major traits that makers this
entrepreneur's a higher success are as follows:
 Values the time: The successful business makers have the quality to value the time, not
only of themselves, but of others too. They will follow the time saving approaches to get
their work done and will set a time table to follow for performing on regular period or
intervals. This helps them to achieve the targeted goals in more effective way.
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 Effective planning: Entrepreneurs plan their work and work their plan in a very effective
manner. This planning helps them to identify their work and also aid them to get a
hierarchy of importance of tasks. This helps in better handling of operation and support a
good meeting of targeted goals and operations.
 Keen listeners: All the entrepreneurs are a very good listeners and hear the guidance and
suggestions they get over the product or service with deep interest and attention. This
help them to rectify the problems and come up with an innovative idea to mitigate the
problem faced by people and develop it as a profitable business (Hatten, 2015).
 Adaptable to changes: Entrepreneurs are the most adaptable group that help in suitable
handling of operations that support a good rise in compatibility of the operations and
gaining a good hare of market that will help them to meet the targeted goals and make
necessary alterations or modifications in their product and services as per the
requirements of the company.
These traits and qualities will help in suitable rise in compatibility that will help in
suitable rise in functional ability of operation's this helps in suitable rise in their effectiveness
and help them to gain an effective customer satisfaction level by meeting the needs and
requirements of their customer's. Other than this, it will look after the better handling of
business operation's that will support a better setting up of enterprise and gaining a good market
share and revenue generation. Also, a good leadership will also help in the better development of
company's production capacity and will support it to develop in good pace.
P6 Assess how aspects of the entrepreneurial aspect's personality reflect entrepreneurial
motivation and mindset.
The entrepreneurial attributes and aspects play a very deep and crucial role in the
management of operations performed by an enterprise. An entrepreneur is motivated by his
target goals and surrounding that will help in suitable rise in capability to perform well in
market. The skills and traits, that are been possessed by an individual entrepreneur will help in
suitable increase in effectiveness of a business organisation. This will also help in better
management of business actions that will support a good management of their customer's needs
and demands. The determination and good behaviour is a motivating trait that help in developing
a positive vibe. The valuation of time and developing a strategic plan will help in suitable rise in
effectiveness of the operation's. Other than this, the adaptability towards ongoing changes in
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market will help in better growth and development of enterprise and is a motivating aspect that
help in suitable growth and development of a business firm (Mamabolo, Kerrin and Kele, 2017).
An effective entrepreneur will always look after the present as well as upcoming market
trends and will plan accordingly to the traits and the condition which are prevailing in the
market. Apart from this, being firm on one decision and valuing the opinions and suggestion
provided by others is also the major trait that help in suitable rise in operational capability of
organisation. This will also help in suitable management of operations which will support an
entrepreneur to mitigate the competition in market and gain a long going success. The adamant
behaviour toward one's ethics and beliefs is also an inspiring trait, that will cause the good rise
operational capability of an organisation in a better way.
TASK 4
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship
The experience and background related to education and business will play a very deep
role in handling of operation that will help in suitable rise in compatibility of operations that will
support a good growth and development of a business firm. A good knowledge and experience to
carry out operations that will catalyse the development and setting of a good and strong
enterprise. Other than this, having a better financial and technical background also act as the
advantage while setting up of a good a better goals that will help in effective management of
business operations and meeting of targeted goals. This factors help in effective fostering of
traits that have created a good handling of operation and has provided an enterprise with a good
growth and development.
However, it is not quite necessary for an organisation or an entrepreneur to have a good
knowledge and background of respective field. One must possess the suitable traits and qualities
that will help in setting up of a good and strong enterprise. For example, Steve Jobs had no
background knowledge of computers and IT and had never written a single line of code. Yet, he
managed to create one of the world's biggest IT companies, Apple Inc. his explicit
communication skill, marketing tactics, intuition of understanding the customer's need and
demands have helped him a lot to gain a good control over the operations that had helped him in
setting up Apple Inc. Similarly, the founder of KFC, Col. Harland Sanders had no economic
resources when he started his venture. But with his strong determination, skills set and better
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communication skills, he was able to create one of the most loved fast food brand. Thus, it can
be said that it all depends on the perception and attitude of a person or an entrepreneur toward
the quality of services and products it offers to its customers (Matchaba-Hove, Farrington and
Sharp, 2015). Other than this, a good developing of interpersonal relationship, adaptability to up
coming changes and accepting the innovation helps and entrepreneur to establish a successful
business venture in market.
CONCLUSION
The report concluded with analyses of enterprises and small business management which
has become a crucial part of society and economic development. From the report it has been
determined that there are generally four types of entrepreneurial ventures which work differently
that is scaleable start-up, social, small scale and large enterprises. In addition, analysis of
typology of firms derived similarities and dissimilarities between ventures. Besides, the report
outlined impact of SME's on UK economy which reflected that that growth small organisation is
supporting economic development by creating employment opportunities and by making
sufficient contribution. Thus, the report concluded with skills and traits of entrepreneur which
are core necessity for managing successful entrepreneurial ventures and functions.
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REFERENCES
Books and Journals
Amato, C., Baron, R.A. and Pierro, A., 2017. Regulatory modes and entrepreneurship: the
mediational role of alertness in small business success. Journal of Small Business
Management. 55(S1). pp.27-42.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Mamabolo, M.A., Kerrin, M. and Kele, T., 2017. Entrepreneurship management skills
requirements in an emerging economy: A South African outlook. The Southern African
Journal of Entrepreneurship and Small Business Management. 9(1). pp.1-10.
Mariotti, S. and Glackin, C., 2014. Entrepreneurship and small business management. Pearson
Higher Ed.
Matchaba-Hove, T., Farrington, S. and Sharp, G., 2015. The entrepreneurial orientation-
Performance relationship: A South African small business perspective. The Southern
African Journal of Entrepreneurship and Small Business Management. 7(1).
Nabi, G., Liñán, F. and Walmsley, A., 2017. The impact of entrepreneurship education in higher
education: A systematic review and research agenda. Academy of Management
Learning & Education. 16(2). pp.277-299.
Saleem, M.A., 2017. The impact of socio-economic factors on small business success.
Geografia-Malaysian Journal of Society and Space. 8(1).
Schaper, M.T. And et.al., 2014. Entrepreneurship and small business.
Online
BUSINESS POPULATION ESTIMATES FOR THE UK AND REGIONS 2014. 2014. [ONLINE].
Available through:
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/377934/bpe_2014_statistical_release.pdf>.
Taylor D., 2015. SME’s XL contribution to the UK economy. [ONLINE]. Available through:
<https://www.clearbooks.co.uk/blog/smes-xl-contribution-to-the-uk-economy/>.
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