Report on Entrepreneurship & Small Business Management, Semester 1

This report offers a comprehensive overview of entrepreneurship and small business management, encompassing various aspects from venture types and their characteristics to the interpretation and assessment of relevant data. It delves into the significance of small businesses and startup ventures in fostering social economic growth, alongside an exploration of the traits and characteristics that define successful entrepreneurs. Furthermore, the report examines the background and experiences that can either hinder or foster entrepreneurial endeavors. The analysis includes a discussion of different entrepreneurial ventures, the similarities and differences between them, and the importance of data in understanding their impact. The report also touches upon the role of micro, small, and medium-sized organizations in the economy, and how they contribute to job creation and economic growth. Finally, the report provides an overview of the role of creativity and innovation in driving business ideas and protecting intellectual property rights.

Entrepreneurship & Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Types of entrepreneurial ventures and relation to typology..................................................1
P2 Similarities and difference between entrepreneurial ventures...............................................3
Task 2...............................................................................................................................................5
P3 Interpretation and assessment of relevant data......................................................................5
P4 Importance of small businesses and start up business to the growth of social economy.......6
Task 3...............................................................................................................................................7
P5 Traits and characteristics of successful entrepreneurs...........................................................7
P6 Aspects of entrepreneurial personality which reflects entrepreneurial motivation and
mindset........................................................................................................................................9
Task 4.............................................................................................................................................10
P7 Background and experience of entrepreneurship that can hinder and foster
entrepreneurship........................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
A capacity and willingness to start, develop, manage and organize a venture along with
risk in order to make profits is known as entrepreneurship. It mainly focused on launch and
running a business independently that helps to make profits. It impacts on social and global
economy by running a small business. To understand about entrepreneurship a consultancy firm
has been selected that provides advice and market intelligence to small business and
entrepreneurs (Irene, 2017). The aim of such venture is to attract and guide new businesses by
supporting them which helps to run a business successfully. The manager of such organization
prepare this report in which different aspects are going to be cover like impacts of different
ventures, difference and similarities between entrepreneurial ventures. Moreover, importance of
data and statistics that impacts on small, medium and large organization, growth of
entrepreneurial ventures and different successful entrepreneurs are consist in this report.
Task 1
P1 Types of entrepreneurial ventures and relation to typology
Entrepreneurship: A new business activity which is run by an individual through
innovating new ideas and thoughts along with risk is known as entrepreneurship. In other words,
incubator of innovation and new business consider as entrepreneurship. A small venture should
have skills and capabilities to set a business by taking financial risk which helps to maintain the
productivity and profitability in business environment.
Entrepreneurs: Person or business owners who look for generate value by creating and
expansing of economical activity is known as entrepreneur. These person identify and introduce
new opportunities by launching new products and processes that helps to meet with
organizational objectives (Ibrahim and Mas’ud, 2016).
Entrepreneurial activity: It contains human actions that helps to generate value, through
expansion and generate economic activity. There are different types of activities which are run
by human being by taking risk is known entrepreneurial activity. To identify the opportunities,
innovate ideas, arrange capital, use new technology and start a business is consider as
entrepreneurial activity. It organize and manage business with the help of human activity for the
purpose of making profits.
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Enterprise: A small company and a business is known as enterprise. It is run by different
types of entrepreneurs by starting and managing a business at small level. The main aim of such
enterprise is to earn profits by taken risk in business activities.
Social enterprise: Basically, it is non profit organization which is run by trusties, NGO
and society in order to improve living standard of people and also helps to increase financial,
social and environmental aspects. It has specific objectives that to serve people and environment
by using social fund.
Social entrepreneurs: This means a people who are interested to work for poor people
and make them feel good are known as social entrepreneurs. This type of entrepreneurs runs and
manage a business by solving the social problems and earn minimum profits. Such as micro
finance institutions, banking services, educational programme etc. are consist in social
entrepreneurs which helps to improve the social economy. It focuses on growth of social
economy by solving the problems and running a business on continuously basis (About social
entrepreneur, 2018).
Different types of entrepreneurship ventures are as defined:
Serial entrepreneur: Entrepreneur who comes with new thoughts and ideas on
continuously basis in order to start new business is consider as serial entrepreneur.
Entrepreneur: This means an entrepreneur who often come with single idea and start a
company by focusing on day to day functions is consider as entrepreneur.
Owner manager: A person who own and manage small or medium size business by
focusing on future plans and goals is known as owner managers. This type of entrepreneur have
full control over business activities and function that helps to make profits (Korsgaard, Anderson
and Gaddefors, 2016).
Typology of entrepreneurship are as defined:
Life style: The demand and fashion of local and regional people are changing on
continuous basis who needs to get new products and services in order to improve their living
standard. This typology creates a great opportunity for entrepreneurs to earn profits by launching
new product and business. It is consider in corporate sector that bring new ideas or innovation in
order to make profits. Therefore, Lifestyle typology is interrelated with serial entrepreneurship
who comes up in market with new products and attracts people to buy goods that helps to
improve their living standard.
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Growth: The main aim of business venture is to earn maximum revenues that leads to
sustainable growth of organization. The growth of business is based on day to day activities
which runs by entrepreneur in order to get higher returns. It is consider as public sector that
introduce from new products by analysing needs of people and helps to earn profits for the
purpose of gaining growth. Therefore, growth typology is related with entrepreneurs and owner
manager where a person come with single idea and introduce new products by focusing on daily
functions. The manager of organization have full control over business activities that leads to
organizational growth (Baldacchino, ed., 2015).
P2 Similarities and difference between entrepreneurial ventures
Entrepreneurial ventures mainly focused on profit making activity by analysing people's
needs and introduce new products and services. The difference between numerous
entrepreneurship have shown through a table:
Basis Serial entrepreneurs Entrepreneur Owner/ Manager
Meaning Serial entrepreneurs runs
their business
continuously by bearing
financial risk.
It is visionary who bears
all financial risk and
make profits.
They works only for
making profits at
minimum risk.
Focus They focus on continuous
innovation that helps to
introduce new products
and services.
Entrepreneurs focus on
starting and expanding
business ideas.
Mangers mainly focus on
smooth functions of
business.
Motivation Key motivation for serial
entrepreneurs is
continuous growth and
customer satisfaction.
Goal achievement is the
key motivation for
entrepreneurs.
Power, position and
authority is the key
motivation for owners/
managers.
Formal/
informal
They can be formal or
casual who innovates new
ideas independently and
implement successfully.
Entrepreneur can be
informal and casual who
innovates single idea
and make profits.
Managers usually focus
on formal approach in
who understand
problems and provide
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solutions.
Similarities between serial entrepreneurs, entrepreneurs and managers:
 All entrepreneurs and managers focus on satisfying needs and wants of people
who understand problems and make efforts to solve problems.
 Financial risk is bear by all entrepreneurs while running a business activities.
 The main object of all is to make higher profits by offering different types of
products and services.
 They all also provide job opportunities which impacts on social economy
positively.
 To improve the living standard of people is the main aim of all person.
Roles and characteristics of micro, small and medium-sized organisations:
Micro Small Medium
Role It plays an important
role in creating the
employment and
income generation.
It plays an efficient role in
nation's economy by
creating employment and
generating income
opportunity
It plays a role in
economic development of
country in terms of
production, distribution of
income and growth of
economy.
Characteristic
s
 No need higher
investment to
start up micro
business.
 Less than 9
employees are
working.
 Low risk and
low
profitability.
 It generates low
revenues and
profitability.
 It focus on small
market area.
 Limited area of
Fewer location
where it introduce
new products.
 Less than 50
 More than 50 but
less than 249
employees are
working.
 High investment,
higher profits.
 Wider market area
and large scale of
business.
 Continuous
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 Small area to
run a business.
employees can
work.
development of
economy as well
as country.
Task 2
P3 Interpretation and assessment of relevant data
Small and micro entities contribute within different activities that helps to raise the
national income of country. For instance, a person has analysed the the needs of people and
develop new ideas to fill the needs by running a business at micro or small level. By establishing
micro and small business employment opportunities are generated within country that helps to
remove the unemployment which leads to continuous growth of economy. As entrepreneurs have
huge skills and talent that is used to innovate new products and services according to demand.
There are number of small firm who contributes to the national, regional and local level in order
to improve economy. At local level it bring growth and innovation by employing local workers,
adopting climate change and contribution to local government with tax that processed to growth.
Moreover, at regional and national level to creates many job chances for unemployment workers,
growing small business in to a corporation, contributing in government taxes, enhancing trade
practices with other country and improving the supply of products that impacts positively on
economy (Goktan and Gupta, 2015).
As UK was facing Brexit, small and micro businesses have initiated in contribution for
setting the business and provide needed products services and job opportunities which helped to
improve economical development. So, SME has contributed in economical, social and
continuous development of country.
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Illustration 1: Impacts of business concerns on UK economy, 2019
Source: Impacts of business concerns on UK economy, 2019
According to statical data, it can be interpreted that small and micro business have major
share in higher economic growth of UK by offering jobs, increasing living standard, improving
per capita and GDP rates. As shown in data micro and small business widely contribute in
business that is 99.3% that helps to sustain continuous growth by improving economical situation
(Impacts of business concerns on UK economy, 2019).
P4 Importance of small businesses and start up business to the growth of social economy
Creativity: Capability or act of conceiving something original is called creativity. It
involves ideas, imagination, thoughts, problem solving, expression, integrity and brainstorming
to introduce some thing which attracts people (Rantšo, 2016).
Innovation: Invention and implementation of new ideas in order to launch some thing
different is called innovation. It involves process, invention, value, change, implementation and
action to introduce new products in business market.
Here are different sources of generating business and entrepreneurial ideas such as
interest and hobbies, brainstorming, franchises, customer survey and personal experience and
talents which helps to generate business by using new ideas and skills. For instance, needs and
interest is analysed by a person that helps to generate business by using different sources.
Moreover, here are different ways that can be used by business to protect intellectual property
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rights like patent, trade mark, copy right which helps to save the business from copy by others.
Patent act deals with new invention and process, machine etc. that provide security from others.
Same as by using copyright enterprises can save intellectual property like logo, symbol and etc,
which can not be use by others (Boermans and Willebrands, 2017).
Start up and small business are important for social economy that understand the demand
of society and introduce that kind of products and services. Social economy comprises mutuals,
social corporation, not for profit enterprises, voluntary and foundations who runs business for
satisfying the needs of people and provide them a good life. As start up and small business
provides employment chances to local and regional workers which helps to increase per capital.
Therefore, start ups and small businesses are important for social economy. Some importance of
start up and small business are as given:
Motivating innovating products: Start up addition to small business initiates the
products and services by launching new products. As people attracts and get satisfaction with the
help of new ideas which also helps to face the problems while running a business. The economy
of UK has faced problems after Brexit that created a problem for large organization as reduction
in profits, production and less use of technology. Then start up and small business has taken the
advantages by innovating and offering their new products that provide satisfaction and processed
to social economical development.
Providing employment: Workforce is require in all organization whether small, micro
and large who put their efforts in order to achieve organizational goals. Start up and small
business are useful for social economy as they provide employment by hiring skills and talent
people which helps to continuous development. Moreover, with the help of workers small
business can grow faster by solving social issues (Giriūnienė and Giriūnas, 2015).
Task 3
P5 Traits and characteristics of successful entrepreneurs
Characteristics and skills are important for running a business successfully that is used to
understand the problems and get solution. It represent qualities of a person which helps to
introduce from new innovation in order to attracts people (Gielnik, Zacher and Schmitt, 2017).
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Elizabeth Gooch: The famous successful female entrepreneur who is founder of EG
solution that sales operation management software which helps clients to improve their
operational performance.
Tom Mercer: A successful entrepreneur who has started his small business by cooking
food like lunch, breakfast and dinner. He understand the demand of people and decided to launch
small business in order to provide good and healthy food ( Goss, 2015).
The traits and characteristics of Elizabeth Gooch and Tom Mercer entrepreneurs are
described as:
Discipline: Elizabeth Gooch and Tom Mercer are extremely disciplined that helps in
operating task and managing business successfully. Elizabeth Gooch and Tom Mercer having
good behaviour that helps to face the challenges smoothly and run their business which
differentiate from others.
Confident: Confidence is needed for every one that helps to cope with problems and give
motivation to work perfectly. Such as Elizabeth Gooch and Tom Mercer are confident about
their ideas and they started their own business which distinguish from others because others
entrepreneurs are not confident about their ideas. Both entrepreneur have huge confidence level
in stick decisions that helps to establish a business (Storey, 2016).
Skills of Elizabeth Gooch and Tom Mercer:
Decision making skills: Elizabeth Gooch and Tom Mercer are having such skills which
helps to make right business decisions. For instance, Elizabeth Gooch has decided to launch a
small business in which they will sell EG solution software in order to make smooth
management operation. And Tom Mercer make decision to launch a business by providing
healthy food. Both entrepreneur make appropriate decision within stipulated times and achieved
success which make distinguish from others.
Leadership skills: This is required skills in every person that helps to achieve business
objectives by leading the people. Elizabeth Gooch and Tom Mercer possess such skills who
analysis employees problems and provide optimum solution by leading them. Proper guidance
and leading employees they are achieving business objectives effectively which make different
from others.
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P6 Aspects of entrepreneurial personality which reflects entrepreneurial motivation and mindset
As entrepreneurs possess own personality that is used to run a business by maintaining
healthy relations at workplace. It helps to know the challenges which comes in business
organization and provide a appropriate solution of problems. To know the concept of personality
Ocean personality is evaluated that defines qualities and traits of a person which forms
distinctive character from other individuals. The personality of entrepreneurs that influences
mindset together with motivation level as defined:
Openness: It consist different facts by including active, curiosity, imagination, aesthetic
and attentiveness in their work. For instance, Elizabeth Gooch and Tom Mercer are open
minded who openly works with its staff by sharing new ideas and thoughts in order to accept
changes in their organization. Resulting, it impacts positively on mindset and motivation level as
employees feel good.
Conscientiousness: It is associated with future strategy, planning ahead, self discipline,
and hard work in order to complete future targets. Such as Elizabeth Gooch and Tom Mercer are
more conscious about their strong vision that stops them to involve in any interruptive task. As
result, this trait influenced positively mindset and motivation level of them which helps to
acquires desired objectives to make efforts (Castaño, Méndez and Galindo, 2015).
Extraversion: It consist entrepreneur should be energetic, talkative and investigates
simulations for others that can be compare with others and make plans accordingly. Elizabeth
Gooch and Tom Mercer possess such personality due to which they enjoys talking with other and
feel more energetic. It impacts positively on motivation and mindset as increase in goodwill in
competitive market and high attention of others which helps to make more profitable
organization.
Agreeableness: It consist cooperative and coordinating nature of individuals and
organization which helps to maintain productivity and cooperate with different people. In context
to Elizabeth Gooch and Tom Mercer, having cooperative nature that helps to face the changes
by establishing favourable atmosphere that reflects positively on their mindset and motivation.
Neuroticism: It states that entrepreneurs should be treated their staff with calm and
effective aspects which impacts good on motivation and mindsets. It involves mood swings,
emotional silent and etc. which may impacts negatively on business. For instance, Elizabeth
Gooch and Tom Mercer have low neuroticism which helps to deal with employees patiently and
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limits the more stressful situation. To having this personality impacted positively on mindset and
motivation as they have set up their business with the help of talented employees and get
continuous growth of business organization.
Task 4
P7 Background and experience of entrepreneurship that can hinder and foster entrepreneurship
Each entrepreneur has a different approach to handle the business and making
organizational decisions. The main reason behind these differences is their individual personality
and attitude that they gain through their life experience. Personal background, education and life
experience have a significance in formation of personality of an individual as well as
entrepreneur because characteristic traits such as self-management, co-ordination and self-
motivation can be derived from such factors. Background and life experience make an
entrepreneur to surpass the challenges in an effective manner. The background and life
experience of Elizabeth Gooch and Tom Mercer are presented below:
Background and experience of Elizabeth Gooch:
Elizabeth Gooch was born in 1961 and has started working in HSBC bank at the age of
18 years but left the job only after working 12 months for working with a consultancy firm. It
shows that she is a freedom oriented person. After 8 years, she has started her own consultancy
firm in the age of 26, according to the demand of the industry. It represents that she is bravo in
nature and ready to take the risks. She has also experienced the failure in business in two
consecutive years but did not give up and was determined towards her establishment. This
incident evolve the unique quality of perseverance in her.
Background and experience of Tom Mercer:
Tom Mercer had completed his graduation from Cambridge University and was working
with Bain and Co. as a management consultant at the beginning of his career. He had to prepare
his breakfast himself before going to the work because of which he often got late for the office.
This incident inspired him to develop his current business. He had faced a lot of problems for
evolving his business that provided him various traits of his personality such as risk tolerance. At
the time when his business started to grow up, there was a recession came up in the market. At
that time his rare business skills had been seen and persuasive characteristic of Tom inspired him
to develop impressive strategies.
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