Entrepreneurship and Small Business Management Report, Analysis

This report delves into the multifaceted world of entrepreneurship, examining various types of entrepreneurial ventures, including small businesses, large businesses, and social enterprises. It explores the similarities and differences between these ventures, highlighting their impact on the economy and society. The report further investigates the characteristics and traits of successful entrepreneurs, analyzing how personality, background, and experiences influence their motivations and actions. It also differentiates between entrepreneurs and intrapreneurs, outlining their distinct roles and objectives within the business landscape. The report encompasses topics like the effect of micro and small businesses on the economy, the importance of small businesses and business start-ups on the growth of the social economy, and the motivational drivers of successful entrepreneurs. The report concludes by analyzing how background and experiences influence entrepreneurs, both positively and negatively, offering a comprehensive overview of the key elements of entrepreneurship and small business management.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and how they relate to the typology.............1
P2 Different types of entrepreneurial ventures, similarities and differences between each other
................................................................................................................................................4
P3 Effect of micro and small business on economy...............................................................7
P4 Importance of small businesses and business start-ups on the growth of the social economy
................................................................................................................................................8
M1 Demonstrate an understanding of entrepreneurship in both public and private sector..10
M2 Evaluating the differences that small, medium and large businesses make to the economy
..............................................................................................................................................11
D1 Critically examining the scope, development and growth of entrepreneurship ventures11
D2 Critically examining how small businesses have an impact on different levels of the
economy...............................................................................................................................11
PART 2..........................................................................................................................................12
P5 Characteristic and traits of successful entrepreneur........................................................12
P6 Personality of entrepreneur act as a motivational tool....................................................13
P7 Background and experiences which can hinder or foster entrepreneurship....................14
M3 Different lines of argument relating to entrepreneurial characteristics.........................15
M4 Entrepreneurial characteristics that influences of personal background and experience16
D3 Analysing the characteristic traits, skills and motivational drivers of successful
entrepreneurs........................................................................................................................16
D4 How background and experiences influences entrepreneurs, both positively and negatively
..............................................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES .............................................................................................................................17

INTRODUCTION
Entrepreneurship is a activity that consider start up of new business in a economy. In this
process individual is works to design, launch and build a business that can be start up with a
small scale. These people are known as Entrepreneurs who are willing to develop, organise and
running a business firm with any risk to create desired profit and income as well. In this
procedure entrepreneur require specific skills and capacity to achieve implement effectiveness in
their business and achieve future goals as well (Albrech, 2011). For this entrepreneur require to
understand market condition, customer's demand and competitive firms to build impactful
strategy on its bases. All these procedure are based on structure of new enterprise, its size and
target goals that they want to achieve in future. For this entrepreneur require to provide
appropriate training to their employees that helps to getting desired outcomes easily. This report
represent types of several entrepreneurial firms, similarities and differences between each other
and impact of micro and small business on economy. Its also represent Importance of small
businesses and business start-ups on the growth of the social economy and characteristic and
traits of successful entrepreneur. At last it represent Personality of entrepreneur act as a
motivational tool as well as Background and experiences which can hinder or foster
entrepreneurship.
PART 1
P1 Different types of entrepreneurial ventures and how they relate to the typology
Entrepreneurship is a specific procedure in which is individual create impactful strategy
to launch a business venture easily. This is based on new start ups of a firm that include different
type of concepts, ideas, procedures and technologies as well. In this process, individual requires
to understand marketing concept and values that can impact on business procedure.
Entrepreneurship is based on skills, concepts and ability of an individual to build a new start up
in target market. It can be determine in two different terms as entrepreneur and enterprise. In
which entrepreneur is known as a single person who create and design a business structure to
manage their several activities in appropriate manner (Armstrong and Taylor, 2014).
On the other hand Enterprise is a business venture or a company that can be small or
large. These kind of business ventures are established to getting desired profit and income
through different activities. These legal enterprises can be Partnership firms, solo proprietors,
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limited liability company and corporation. In these business venture entrepreneur operate their
business activities in effective manner to getting higher competitive advantages easily. It
consider lots of risk to implement several activities in a competitive market, so for this individual
requires to make effective and impactful strategy that helps to achieve future goals and
objectives in effective manner (Boxall and Purcell, 2011). Entrepreneur should have to be
innovative and creative who translate their ideas and thoughts in business operation activities.
Differences between an Entrepreneur and Intrapreneur – In a new venture two
different people provider their different contribution by their own strategy. They can be
Entrepreneur and Intrapreneur. They both are very different to each other as Entrepreneur is
known as individual who start new business venture by their ideas and skills while as
Intrapreneur can be someone who already working in a form but develop a new product by their
creative thoughts and ideas as well. They both are different to each other but their main objective
is to achieve higher success and earn maximum profit by their own strategy. Below further
difference between Entrepreneur and Intrapreneur are shown as -
Bases Entrepreneur Intrapreneur
Definition They are a person who
establish a new business by
their own ideas and
techniques.
They are known as existing
individual of organisation who
works to introduce new
product in firm by their create
ideas and thoughts as well.
Objective Maximise high competition in
market by establish in business
in target location. There main
objective is to getting higher
success by achieving their
target objectives and goals as
well (Bratton and Gold, 2012).
These individuals are works to
introduce new and innovative
products in their organisation
to increase social economic
values. Main objective of those
individual is to introduce new
creation that consider
innovative ideas and new
invention as well.
Activities Entrepreneur are build Intrapreneur are those who
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organisational activities by
their own and they are the
owner of new venture.
participate in new and
innovation activities of firm to
introduce creative though in
product development.
Uses of resources Entrepreneurs are basically
introduce their own resources
that requires to utilize in
appropriate manner to getting
higher success easily.
Intrapreneur are works to
utilize organisational resources
in proper and innovative
manner to launch new products
and services in market.
Risk Entrepreneurs take risk while
set up a new venture in
competitive market.
All the risks are taken by
organisation.
Different activities that link to entrepreneurship - Entrepreneur requires to analyse
marketing activities that can affect on their business procedure and services. Through this they
can easily maximise their profit and organisation's income easily (Brewster and Hegewisch,
2017). For example business strategy required in a entrepreneur who conduct operational
approachers in their new enterprise to getting competitive advantages from target market. Such
activities helps to create new path for firm to build their own image easily in front of competitive
organisation's and in target market.
Different venture that are undertaken by entrepreneur -
Small business entrepreneurship – These are the kind of Enterprise that start up on a
small scale. In these venture number of employees, resources and operation activities are
consistently small by the nature. These kind of organisation provide their own contribution in
economy development and employment services. Theses small scale operations are basically
implemented by small grocery stores, travel and tourism firm as well as retail stores.
Large business entrepreneurship – These type of organisations are large in structure
and size. Such organisations conduct large operational activities and grab lots of opportunities
from target market (Choi and Turk, 2011). Growth of these firms are based on production
services, innovation, uses of advance technology and number of employees who serve their
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quality services in firm. These organisation easily expend their business structure in several
countries.
Social entrepreneurship – These organisation are basically works to provide effective
products and services for social welfare. Main objective of theses type of organisation is social
development through various activities.
Entrepreneurial ventures -
 Lifestyle ventures – These entrepreneur are more likely to invest their money at specific
place. Their aim is to sustaining particular level of income to enjoy their lifestyle easily.
These business have limited potential growth because main objectives of its owner is to
provide higher satisfaction to target customers. Main objective of lifestyle venture is to
engaged effectiveness in entrepreneur's income and their personal requirement.
 Survival ventures – These are the new start-ups in a economy that faces lots of
challenges and competition. For them, it is require to manage their strategies in impactful
manner. Through this, they can easily get desirable growth and income. For them, it is
require to make proper analysis on target market before implementing any operational
activity .
 Aggresive growth ventures – These type of business organisations are basically
established to making money and funds quickly. For this entrepreneur needs to manage
their activities effectively to build appropriate market image in short term period. Owner
of these enterprises make proper strategy to getting desirable growth in proper manner.
 Managed growth ventures – Entrepreneur of these ventures are more likely to create
their positive image in target market. So for this, they analyse target market properly to
provide higher satisfaction to customers on the bases of their requirement and need.
 High growth venture – In this procedure, an individual start a venture by their own
efforts and effectiveness to getting higher competitive advantages and growth. In this
procedure, most of the private sector organisations has comes under as sole proprietors.
In which one person develop creative ideas to getting maximum growth esaily.
P2 Different types of entrepreneurial ventures, similarities and differences between each other
In a economy different type of entrepreneurial ventures are established to achieve their
future objectives in effective manner. Working structure and future goals of theses firms are very
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different to each other. Major similarity in theses firms is that they all are working for customers
services to provide them higher satisfaction easily (Disch, 2016). Through this they grab lots of
opportunities easily. For a entrepreneur, it is required to create their future objective properly to
make effective strategy on its bases. There are different type of entrepreneurial ventures, its
similarities and differences are given below as -
Public sector organisations - These type of organisations are basically established to
provide their effective services to customers as per their requirement. Main objective of these
entrepreneurial ventures is to provide higher satisfaction to consumers on the bases of their
requirement, need and capacity to afford services cost. They are not works to making money but
also to serve quality services to each individual. These enterprises are very different to private
sector entrepreneurial ventures as -
 Public sectors organisations are owned by government bodies
 Public entrepreneurial ventures are uses different procedure to hire candidate in their
sectors
 Employees and workers who are working in public entrepreneurial ventures faces
different accountability
 Public sector firm has their fixed goals and objectives that can not change
 Working structure and marketing share of these entrepreneurial ventures are very large
While as public and private sector firm has various similarity that they established to
provide quality products and services to their customers as per their requirement and need as
well. They all uses different techniques to solve issues and problems (Hendry, 2012). Both
organisations faces lots of challenges due to the changes of customers demand and choice as
well.
Private sectors organisation – These type of organisations are very different public
sector entrepreneurial ventures because their main objective is to making money and getting
higher income easily. These ventures are provide different variety to customers as per the bases
of their requirement and need. These organisations re not owned by government and they are
basically working to achieve their future goals and objective as well. Private sector
entrepreneurial ventures can be small or large as per the bases of its structure. These firms are
very different to public entrepreneurial ventures as -
 Private sectors firms are owned by a individual person or group of some people.
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 Private venture adopt small program for hire a candidate in their organisation.
 Employee who belongs to private entrepreneurial ventures faces lots of challenges by the
strong competition in target market (Hülsheger and Schewe , 2011).
 These are established to making money and higher profit as well.
 Private entrepreneurial ventures can expend their business structure as per the bases of its
owners strategy and appropriate funds as well.
Some time private sectors organisation are working on the bases of public entrepreneurial
ventures. For this they require to implement governmental legislation, regulations and laws in
their organisational procedure. To expend a business in a country , private sectors organisation
requires to getting licence and permission by authorised body as public entrepreneurial ventures
get permitted. Theses kind of things make appropriate similarity in private and public sectors
firms.
Voluntary sectors organisation - These sectors organisations are basically works to
provide their effective services for social care activities (McMillan and et. al., 2011). There
main objective is to serve quality services for each and every person. Such organisations are
very different to public and private firms that are owned by government al bodies, trusties and
any group of people.
Social enterprise – These type of organisations are basically established to manage all
organisational activities in effective manner. These firms belongs to non profit venture that have
an objectives to getting positive returns by their working services and activities. These types
of organisations are basically works for social, culture and environmental welfare.
Venture Similarities Difference
Serial & Lifestyle Venture Serial and lifestyle venture are
works for a specific target and
objective that requires to attain
on the bases of future demand
and requirement. Working
approaches and concept of
these organisations are very
similar to each other.
Lifestyle entrepreneur are
basically dedicated toward
their career and targets that
they want to achieve through
their new start ups. Serial
ventures are not fully
concentrated about their future
objectives and they works for a
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short term duration.
Managed and High growth
venture
Managed and High growth
both venture are works to
accomplish their target goals
and objectives in effective
manner. In these organisations,
working procedure and criteria
are very similar to each others.
In an managed venture,
number of resources and funds
are limited while in high
growth venture maximum
numbers of resource are
available to getting maximum
growth and competitive
advantages.
P3 Effect of micro and small business on economy
Number of SMEs start ups – In UK approx 5.5 million private sector organisations are
start in the year of 2016. Theses sector are increase of 97000 since 2015 as well as approx 2.0
million higher than in 2000. SME of country is accounted for 99.3% of all private sector firms in
the start up of 2016 and 99.9% were belongs to small and medium sectors.
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Illustration 1: Brexit’s impact on small businesses
(Source:- Brexit’s impact on small businesses, 2018)

The above analysis suggest that small and medium size organisations expand their
business approaches on the bases of economy development process. For this, they provide
several opportunities as in employment and treading practices.
Number of employing businesses – In those sector, number of employment was 15.7million
which is 60% of all private sector employment in UK.
Number of employments provided – Number of employment provided is 14,000 (+1%)
since 2015, in which number of non employees are approx. 84,000 (+2%).
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Illustration 2: Small and medium enterprises
(Source: Small and medium enterprises.2018)

Annual turnover of SMEs – The effective turnover of Small Medium enterprises was
£1.8 trillion which is approx. 47% of all private sector turnover in UK.
Businesses Employment
thousands
All businesses 5,497,670 26,204 3,860,87
SMEs (0-249 employees) 5,490,470 15,734 1,824,69
8Small businesses (0-49
employees)
5,457,160 12,483 1,278,75
4
With no employees
2
4,172,185 4,535 254,5
All employers 1,325,485 21,669 3,606,32
5of which:
1-9 employees 1,081,425 3,978 463,4
2110-49 employees 203,550 3,970 560,7
8850-249 employees 33,310 3,251 545,9
45
250 or more employees 7,200 10,470 2,036,17
2
Number of registered SMEs for VAT and PAYE - For a specific research, Office of
National statistics analyse 2.5 million private sector businesses are recorded for VAT or PAYE
which is 45% of estimated total population. In this process, 14% sole proprietorships and 53% of
partnerships firms are analysed for VAT or PAYE. In the same case over 3 million organisations
which is approx. 55% of traded are registered for without being VAT or PAYE.
Illustration 3: UK independent and dependent companies statics
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This above diagram is represent growth of new start ups in UK. These organisation
provide their effective contribution in economy development and growth procedure. In this
process, different organisations and ventures provide their contribution in terms of employment
and furthers growth procedure.
P4 Importance of small businesses and business start-ups on the growth of the social economy
For a small businesses and business start-ups it is require to provide their own
contribution in economy development process (Meredith Belbin, 2011). This is strategy of
entrepreneur to getting higher profit and income by their business approaches that directly and
indirectly impacts on economy. For this management of firm requires to analyse each and every
element that related to culture, community, region, social issues and customer's demand to
maximise sales and revenue. There are different elements are determine that helps to make
effective changes such as -
Build a connection with each and every one- For a new venture, it is require to build a
impactful connection with each and everyone who helps to making long term benefits for firm.
In this process employees of business require to use effective communication skill that helps to
understand customer's issues and problems to resolve them properly. These activities aid to
increase consumers loyalty to getting higher growth easily.
Creating of wealth and its sharing- A small scale and private organisation basically
established with a effective objective to earn higher profits and growth as well. To maximise
income of firm, it is require to utilize resources in appropriate manner and use innovative ideas
and thoughts to make creative modification in their services. In this process manager of
enterprise require to introduce minimum costing of their services that helps to capture customer's
eyes toward these services (Paulraj, 2011).
Provide employment services – For a small scale organisation, it is required to provide
employment services to skilled and experienced candidate. Through this they can increase
organisational productivity and getting higher growth easily. Through this process they can grab
new ideas and creative thoughts in their organisation that increase values of products and
services. Theses employment services provide its contribution in economy development process.
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