Entrepreneurship: Small Business, Mindset, and Environment Report

This report delves into the realm of entrepreneurship and small business management, encompassing various facets of the entrepreneurial landscape. It begins by exploring different types of ventures, including small business entrepreneurship, scalable startups, large company entrepreneurship, and social entrepreneurship, while also clarifying the distinctions between entrepreneurs, intrapreneurs, and owner-managers. The report then assesses the impact of small businesses on the economy, utilizing data and statistics to illustrate their significance in the UK. Furthermore, it identifies the key characteristics and skills of successful entrepreneurs, analyzing the entrepreneurial mindset and the factors that either foster or hinder entrepreneurial endeavors. The report provides a comprehensive overview of the subject matter, offering valuable insights into the dynamics of entrepreneurship.

Entrepreneurship and
small Business
Management

Table of Contents
Introduction:.....................................................................................................................................4
LO1: Explore and illustrate the range of ventures types that might be considered
entrepreneurship...............................................................................................................................5
Examine the different types of entrepreneurship ventures and explain how they relate to
typology of entrepreneurship.......................................................................................................5
ENTREPRENEURSHIP:-Is the process of designing,launching and running a new
business,wich is often initially a small business..........................................................................6
LO2. Assess the impact of small businesses on the economy.......................................................10
Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy..............................................................................................................10
Explain the importance of small businesses and business start-ups to the growth of the social
economy.....................................................................................................................................12
LO3. Determine and assess the key aspects of an entrepreneurial mindset...................................15
Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers...........................................................................................15
Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset.......................................................................................................................................18
LO4. Examine the different environments that foster or hinder entrepreneurship........................20
Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.........................................................................................................................20

Conclusion:....................................................................................................................................22
References:.....................................................................................................................................23

Introduction:
This report is based on entrepreneurship and small business management. In that perspective, the
first part of this report will provide a brief description about different types of ventures. This first
part of this report will include description on different entrepreneurial ventures along with the
explanation that shows the relation among different entrepreneurial ventures and several
typology of entrepreneurship. Besides that, this report will show both similarities and differences
between entrepreneurial ventures. On the other hand, the second part of this report will include
effect of start-up organisation for the development of the society. In that perspective, a proper
statistical chart and graph will be provided to establish the impact of small business and start up
business on the social economy. Along with that, the necessary characteristic traits and skills to
be successful entrepreneur will also be attached in this report. In addition, the major factors are
mentioned in this report regarding entrepreneurial mindset. Furthermore, this report will mention
about different foster that can be affective for entrepreneurship in both the negative and positive
way.

LO1: Explore and illustrate the range of ventures types that might be
considered entrepreneurship.
Examine the different types of entrepreneurship ventures and explain how they
relate to typology of entrepreneurship.
Entrepreneur refers to a person who organise, manage and takes risk of business. Therefore
entrepreneurship can be considered as running, developing and introducing a new business
ventures along with taking business risk.
Types of entrepreneurship
1. Small business entrepreneurship: Small business entrepreneurship mainly refers to the sole
proprietorship which is independently owned and work for profit, these business is usually not
dominant in the field. Mainly restaurants, construction firm, retail stores and agriculture falls
under small business entrepreneurship. They mainly raise their funds from micro loans, bank
loans, personal funds etc. Small business firm can generate taxes and jobs but they cannot create
huge numbers of employment. They supply those goods and service which are necessary for
people livings as well as some leisure goods. In today’s world large number of business are
small. They fail to attract investors because they do not deal with huge profits.
2. Scalable start up entrepreneurship: In this types of entrepreneurship, a person start a
company in a view to change the world. They arrange their funds from venture capitalist and
they hire qualified employees. Their goal is to introduce scalable and repeatable business model.
Once they achieve their first goal they start finding new investors to expand their business.
Examples of this entrepreneurship are Facebook, Instagram etc. Very few people do this start-

ups because it is an inovation cluster, so, it has risk capitals and outsize returns (Kuratko Morris
and Schindehutte 2015).
3. Large company entrepreneurship: It can be defined as an established organisation or joint
stock company which employee at least 500 people. The main purpose of this large companies is
to create huge revenue and profit for its shareholders. They generally get their funds from their
retained earnings, tax credits and subsidies. Generally this enterprises has sustainable life cycle
because of their new product introduction along with its core products. Their day to day
operation depends on customer’s tastes and preferences, government laws, competitors etc.
Example of large companies can be Google, Microsoft, and Samsung etc (Kuratko Hornsby and
Naffziger 2016)
4. Social entrepreneurship: This types of entrepreneurship mainly produces goods and
services which solve the problems and needs of society. Their main objective is to make
the world a better place rather than earning huge profit and accruing wealth. Safe point
trust is one of the famous social enterprise in the world they made inexpensive non
reusable syringes and delivered it to 40 countries. This type of enterprise mainly aim to
solve global issues and problems of developing countries. Their capital provider depend
on the size of the business and one investor can take responsibility of entire capital. These
type of enterprise may be profit, non-profit or hybrid (Lumpkin, 2017).
Entrepreneurship is considered as both the analysis of how new business are established
and the exact procedures of initiating a new one (Entrepreneurship definition. 2019). Moreover,
this is the procedures to design, launch as well as operating new enterprise, that is often started a
new business.

The difference between ‘entrepreneurs, intrapreneurs and owner-managers’
Basis Entrepreneurs Intrapreneurs Owner-manager
Meaning Entrepreneurs are
considered as the
individuals who
establish their own
business with new
ideas.
Intrapreneurs are
considered as the staff
of firm who is in
charge of undertaking
creation onto goods,
services, procedures
and so on.
Owner managers are
known as to be the
manager of owners
who are accountable
for the management or
department of firm.
ENTREPRENEURSHIP:-Is the process of designing,launching and running a new
business,wich is often initially a small business.
DIFFRENCES BETWEEN :ENTREPRENEURS,INTRAPRENEURS AND OWNER MANAGERS
Entrepreuneurs are people wich started a new small busniess
Intrapreuneurs is a manager within a company who promotes an innovative product

Owner manager is someone who owns and manages Explore the similarities and
differences between entrepreneurship ventures.
Differences between small business entrepreneurship, scalable entrepreneurship, large company
entrepreneurship and social entrepreneurship.
Small business
entrepreneurship
Scalable
entrepreneurship
Large company
entrepreneurship
Social
entrepreneurship
It generally generate
smaller amount of
profit
It generate recurring
revenue or
repeatable income to
invest it further
which is much
greater than small
business enterprise.
It generates huge
amount of profit to
divide it among its
shareholders and
keep some amount
of profit as retained
earnings.
They generally do
not concentrate on
how much profits
they are earning.
They only focuses
on public welfare.
They employee
small amount of
people as they do
not operate in large
scale.
They employee
more numbers of
people than what
small business
enterprises do and
they employee most
qualified people like
best engineers from
the world (Gartner
2016)
This enterprises
employee have a
huge amount of
people as they
operate in large scale
they provide plenty
of job opportunities.
They need people
from all sectors of
profession starting
from managers to
economist to
engineers to labours
etc.
They mainly provide
jobs to those people
who comes
voluntarily and want
to serve the society.
This types of
entrepreneurship
generally operate in
smaller area or in
their local area to
meet their local
demand.
This types of
entrepreneurship
may operate in
national level or can
go for globalisation.
It depends on their
potentiality of their
innovation.
This type of
enterprise operates
globally. They have
huge capitals in their
hand to open a
factory or branch in
foreign land.
This types of
enterprise may
operate in local level
or national level or
global level
depending upon
their size of the
business.
As these types of
entrepreneur
concentrate on
earning profit to
continue their
business so they
keep high price for
their product
(Ehrlich De Noble
These type of
enterprise keep their
price in such a way
so that everyone can
access their new
ideas like Facebook.
They set their price
according to their
PESTEL and
PORTERs analysis.
They sometime
follow price
discrimination
policy that is they
charge high price
These types of
enterprise generally
charge low price for
their goods as they
generally supply
goods and services
to poorer section of
the society. Even
some time they

Moore and Weaver
2015).
from the rich people
and charge low price
from poor people.
deliver good free to
the society.
These types of
enterprise entirely
run by an individual
every decision is
taken by that
individual.
These types of
enterprise can run by
individual as well as
by groups depends
on what is the source
of idea (Mueller and
Thomas, 2017)
These types of
enterprise run by
board of directors as
every decision of the
business taken after
a meeting held
between the bord of
directors.
These types of
enterprise run by
group of people who
comes voluntarily
comes to serve the
society.
Similarities between Small business entrepreneurship, scalable business entrepreneurship, large
business entrepreneurship and social entrepreneurship
1. Financial goals: Every business entrepreneurship does not matter how they differ they want to
earn some amount of profit which will make them financially independence.
2. Risk factor: Every business entrepreneurship has fear of risk of loss. Even social enterprise
who merely work for profit want generate that much revenue which help them to continue their
business.
3. Financing strategies: All types of business entrepreneurship a common way of raising fund is
bank loan. The only difference is small business enterprise take small loans form the banks
where as large business enterprise take huge loans from banks.
4. Employee satisfaction: Does not matter how many numbers of people a business enterprise
employee they all concentrate on satisfying their employers by compensations and bonuses.

LO2. Assess the impact of small businesses on the economy.
Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy.
The economic status of the United Kingdom has greatly been affected due to the emergence of
small and micro business. Among all types of business that operate within the United Kingdom,
small and micro business is the major ones. It is so because these business provides more
revenue and do not involve much complications or stress. Along with that, small businesses these
businesses do not need huge number of employees or suppliers and thus the expenses of these
business are quite less.
In order to understand the contribution of the SMEs in the economic growth of the United
Kingdom it is important to study about the difference between the small and large business that
operate within this country (Hill, and Westbrook, 2017).
As per the reports upon the economic status of the UK, it is clear that the number of small
businesses has increased within the UK market and the larger businesses have lost their power
upon the market. About 4.5 million companies of the UK are SMEs, which accounts to about

99% of the UK economy. The SMEs have increased the employment to a large number of people
and thus these companies have resulted to almost 33% of employment (Helms, and Nixon,
2016).
However, in order to find out how much small businesses have affected the UK economy, it is
important to find out the contribution of all small, medium, as well as large business sectors of
the UK.
With the help of this graph, it is clear that small businesses provided about 37% turnover and
48% employment to the United Kingdom. On the other hand, the medium scale business
provides about 15% of the turnover and 12% of employment however large scale business
provides 49% of turnover and 40% of employment. Thus, it is clear that irrespective of the size
of the business SMEs contributes a lot to the economy of the United Kingdom. This as a result
has improved the economic status of this country and has helped in the development of the
company in various sectors such as social, political, environmental, and cultural sectors (Kurttila
et al., 2018). As in, it have been analysed that small businesses are growing rapidly in
comparison to medium and large business. So, as small enterprises are leading its enhances the

employment but reduces the turnover. Similarly, as in medium business employment less but its
turnover maximises. Moreover, the percentage of large business is 0.1%, its employment
percentage is less in compare to small business but more than medium one. But their turnover is
high in comparison to bout enterprises small and medium.
The SMEs are categorized into four divisions- non-innovator, innovator, on-exporter, and
exporter. The graph presented below has shown the divisions of SMEs and with that, certain
statistical information about these businesses has been provided.
As per this graph, it is clear that there are almost 12.2% of non-inovato0rs present within the
market of the United Kingdom. Apart from that, there are almost 23.9% of innovator, 13.6% of
non-exporter, and 33.2% of exporter businesses in the United Kingdom. Thus, to be specific the
exporter SME businesses are the majority of businesses that operate within the market of the
United Kingdom. Therefore, most of the income of the United Kingdom comes from this sector,
however the contributions of the other types of SMEs is quite high too.
Explain the importance of small businesses and business start-ups to the growth of
the social economy.
Social economy is developed through a rich diversity of businesses as well as firm like mutuals,
foundations, cooperative, social enterprises and paritarian institutions and many more. They may