Entrepreneurship and Small Business Management Report: An Overview

This report delves into the multifaceted world of entrepreneurship and small business management. It begins by defining entrepreneurship and its significance for economic growth, then explores various types of entrepreneurial ventures, including survival, managed growth, lifestyle, and aggressive growth ventures, as well as the typologies of entrepreneurs. The report also compares and contrasts business and social ventures, highlighting their similarities and differences in goals, mindset, value creation, and marketing. Furthermore, it examines the impact of micro and small businesses on the economy, emphasizing their roles in job creation, innovation, and international trade. The importance of small businesses and start-ups is discussed, focusing on their contributions to poverty reduction, local economies, and national economic growth. Finally, the report outlines the characteristics, traits, and skills essential for successful entrepreneurs, such as flexibility, money management, risk-taking, hard work, and motivation, providing a comprehensive overview of key concepts in entrepreneurship and small business management.

Entrepreneurship and Small
Business Management
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INTRODUCTION
In simple words entrepreneurship can be defined as a process of creating or starting a
new small business with the aim of profit maximisation. Entrepreneurship is essential for
economy growth. It is a way to expand business and enhance prosperity. It is a procedure of
generating and using new creations (Bridge and O'Neill, 2012). It help individuals so that they
can run their business in a better and new way. Entrepreneurs give their focus on higher
organisational growth and different innovative ideas but owner of small businesses mostly
focused on specific level of growth and income. Entrepreneurship includes profit, loss and risk
tolerance with the aim of earning giant success. It is a concept which gives appropriate manner to
individuals to come and present their innovative ideas. People establish small businesses with
some objectives like profitability, productivity, employee retention, growth and maintain
financing (Baum, Frese and Baron, 2014). Both entrepreneurship and small business helps in
growth and development of economy by providing job creation, innovative ideas, international
trade, poverty reduction and also improves standard of living of citizens.
TASK 1
P1. Entrepreneurial ventures, its types and how it relate to typology of entrepreneurship.
In recent times, business ventures has become a way to individual's growth. It comprise
of venture development and economy extension. Entrepreneurial ventures are also known as
small business (George and Bock, 2011). It gives various future opportunities to a owner. It
involves risk taking, success and sometimes failure also. Business venture is a place where an
individual achieve his goals and objectives by facing a chance of failure. It helps individual in
representing his new and innovative ideas and creations. The main reason behind starting small
business is market demand and shortage of supply. Some of the entrepreneurial ventures are
discussed below:
 Survival ventures: Businesses categorised in this type of ventures are highly focuses on
the survival of owner and his family members. This sort of business mostly deals in cash
and exchange system.
 Managed growth ventures: Every organisation wants its growth. Those persons who are
highly focused on growth starts managed growth ventures. This kind of ventures are
profit and extension oriented.
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 Lifestyle ventures: This type of businesses give centre attention to lifestyle instead of
high income. These kind of ventures are developed to gross particular level of
remuneration. Lifestyle ventures gives satisfaction to both owner and consumers.
 Aggressive growth ventures: These kind of business trade in equity market and highly
based on technology factors (Tracey, Phillips and Jarvis, 2011). There are many future
opportunities in aggressive growth ventures.
Individuals invest their money in small business to enhance their profit and growth.
Entrepreneurial ventures are mainly focused on consumer satisfaction. Without customer
satisfaction no business can survive in competitive market. So every organisation should be
customer oriented because customers are the only key to get success in future or in upcoming
years. There are some typologies of entrepreneurship which are following as under:
 Copycat entrepreneurs: This kind of business managers use strategies of other people.
In simple words they act as carbon copy of others.
 Research entrepreneurs: This sort of individuals do not copy others but make research
on particular strategies and then apply them in their business enterprise.
 Determined entrepreneurs: Determined managers are the ones who are very passionate
about their work. They achieve goals by their positive mind set.
 Female entrepreneurs: Women who design and launch innovative ideas to start a new
venture is known as female entrepreneurs.
P2. Similarities and differences between entrepreneurial ventures.
There are two types of ventures business ventures and social ventures. Social ventures are
run by social entrepreneurs and its aim is to fulfil social objectives. It can be of many types like
profit organisations, on-profit organisations adolescence groups etc. But business ventures are
mainly focused on profit maximisation and growth (Baum, Frese and Baron, 2014).
Both ventures have some common similarities. Both businesses focus on organisational
growth because it is necessary for the survival of company. Business enterprises and social
enterprises increase their productivity by focusing on customer satisfaction. There are very little
similarities in business ventures and social ventures because they both aims at profit
maximisation. There are many differences between business organisation and social organisation
which are following as under:
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 Goals: The main objective of Business enterprise is to achieve higher profit in terms of
money. It satisfied its owner by ensuring him higher growth and profit maximisation. On
the other hand social enterprise focus on achieving social objectives (Dacin, Dacin and
Tracey, 2011). Social ventures comes in religion crisis when they have to make decisions
between profit and impact on social impact.
 Mindset : Business ventures have the mind-set of only money making so it is pursuit of
money but on the same time social ventures pursuit of passion instead of money. It is a
huge difference between business enterprise and social enterprise. They both take
entrepreneurship in different way.
 Value creation: Business organisations gives values to customer satisfaction through
giving them better goods and services. Business entrepreneurs satisfied their consumers
by deliver them competitive offering and after sell services. But social organisations
create values by positive impact on the society and other communities. Social ventures. It
also gives value to economic growth.
 Marketing communication: As marketing strategies business ventures includes high
advertisement, TV and other media channels to promote their business. But the other
hand social ventures use mouth marketing and other organic social media to reach people.
Hence, these were the some similarities and differences between business enterprises and
social enterprises.
TASK 2
P3 and P4 Impact of micro and small businesses on economy and Importance of small businesses
and business start-ups
Micro enterprises is also known as small scale businesses. It involves nine or fewer
employees and turnover under £2 million. But small and medium size enterprises includes fewer
than 250 employees. Generally they are private companies and run by large corporations. Micro
and small businesses works for large industries and fulfil local needs of customers. It provides
employment to many people. Basically the major functions of SMEs is job creation and economy
development.
SMEs plays a significant role in economic growth and development. It works as
foundation for any private company (Carland, Carlanda and Stewart, 2015). It delivers product
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and services to large industries to improve their business practices. It helps economy in
providing employment and tax revenues.
Impact of SMEs on Economy
Although, in recent times micro and small businesses have become known in all over the
world and they have large impact on employment, economic growth and development. Due to
globalisation and privatisation small businesses has become more important. Micro ventures
helps economy in various areas such as following as under:
 Job creation
 Growth
 Improve standard of living
 Enhance demand
 Innovation
 Increase international trade etc.
These are the some barriers of SMEs which creates a negative impact on economy. But
globalisation and privatisation has remove these issues. Important role of small businesses in
economic development have made them a powerful tool of economy growth. SMEs has become
an economic objective of every country and state. There are many benefits of micro and small
businesses enterprises one of them is, it helps in generating job creation for country which helps
in growth of economy. It also encourages utilisation of raw material resources. It also generate
income for skilled and semi-skilled people. Various steps should be taken by government to
promote the programs for effective financing for SMEs. In many countries numerous programs
are executing to develop the growth and development of micro and small businesses because
they are power engines for economic extension.
Small business is one of the most profitable kind of business. It includes fewer employees
because its size is very little. Mostly it is operated by individual person so it is called privately
owned enterprise or single proprietorships. Some businesses are called small so that they can get
help from government and relief in tax policies. Micro enterprises requires business license and
certification from regulatory bodies. On the other hand business start-ups are newly established
companies and it can be of small as well as big sizes. As they are latterly founded enterprises,
they have modern strategies and upgraded technology which discriminate them from other
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companies. Small businesses and start-ups play a significant role in such areas which are
discussed below:
 Poverty deduction: Small business gives opportunity to skilled and semi-skilled labours
which helps in decreasing the level of poverty and give employment to citizens. Penury
impact a negative effect on economy but new start-ups has declined the poverty. It has
given sufficient sustainable livelihood to poor people which leads to growth of UK
economy.
 Local economy: SMEs fulfil the need of local people. It covers a particular area and also
provides welfare to local economy. It works as a money cycle because money spent on
local needs remain in local area (Bosma and et. al., 2012). With the help of local
businesses people can buy or sell local products which gives satisfaction to persons lives
in that area.
 Per capita income: Business start-ups also increase Gross Domestic Product which gives
benefit to economy. Nations with high GDP rate is known as powerful countries.
Economic growth is mostly reflected by its Gross domestic product rate and small
businesses helps in increasing GDP.
 National economy: Micro enterprise provides various goods and services to large
corporations which helps them in gaining higher profit and that results in economy
growth. So it is said that development of economy is totally based on small business and
start-ups.
Increase employment: New established venture needs innovative ideas, strategies and
potential employees. So it gives opportunity to individuals to get employed. Small businesses has
majority to create jobs for people in country.
Hence, SMEs has a wide impact on social economy. It provides many opportunities to
large corporations, skilled and semi-skilled people (Hitt and et. al., 2011).
TASK 3
P5. Different characteristics, traits and skills of powerful entrepreneurs
The term ''Entrepreneurship'' can be defines as a process of generating innovative ideas
and starting a new venture with the involvement of risk-taking. It is a managerial tool which
gives various opportunities to entrepreneurs and also gives value to social economy.
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Entrepreneur is a person who operates new ventures and manage business practices (Jones,
Coviello and Tang, 2011). Business managers take risks regarding their ventures for great
success and business expansion. There are some business managers like Richard Branson and
Alan Sugar who get higher success in their life (What Are the Typical Traits & Characteristics of
Entrepreneurs?, 2017). To manage the risk and other challenges entrepreneur should have some
basic characteristics which are following as under:
 Flexibility and adaptability: A powerful manager has to go through many problems and
troubles in his business carrier so he should have flexible nature so t that he can face all
the challenges in his life and can compete his market competitors. He should also have
ability to adapt environmental changes of market place.
 Money management: Every business enterprise lies upon finance so it is a responsibility
of every entrepreneur to manage money cycle of his new venture (Karlan and Valdivia,
2011).
 Risk taking: Without the involvement of risk no organisation can achieve its desired
goals so business managers should have capability to take risky decision for growth of
company.
 Hard working: It is not easy to gain organisational goals and objectives it takes
passionate and hard work to achieve company's aim. Business managers can get success
only by their backbreaking efforts.
 Motivation and passion: This is major characteristic of successful entrepreneur because
a good leader is a person who can motivate others to work according him. It is important
function of manager to get work done through others and it only can be happen when he
can motivate his employees.
 Successful planner: Planning is an important feature of management it bridges gap
between where a company is and where it wants to go in future (Miller and et. al., 2012).
Successful planning of manager results in higher growth of company.
Although, these are qualities of powerful entrepreneur but for future growth managers
should also have some unique traits and skills which differentiate him from others and those
skills are discussed below:
 Communication skills: Without appropriate communication no business can operate its
business practices so it is necessary for business entrepreneur to have smooth
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communication skills so that he can communicate his instructions to his employees
(Onetti and et. al., 2012).
 Confidence: Only confident business persons can take initiatives and tolerate risk. It is a
basic trait that every manager should have. Confidence of a person helps him in taking
risky decisions in his life.
 Networking abilities: Every manager should have strong connections with his
employers, employees and other co-workers so that he can communicate them each and
everything about business plans.
 Opportunity seeker: The major work of an entrepreneur is to grasp opportunities in his
carrier life. Everybody gets chance to get susses but only few of them have ability to
grasp that chance so it is required that managers should have capability to identity new
opportunities.
 Determination: A manager with full of determination can get victory in his own
business. Without resolution entrepreneurs will hesitate to take future decisions and also
required actions for company's growth.
Therefore, to achieve competitive advantage every business person should have some
unique qualities and capabilities which distinguish him from other market players.
P6. Reflection of entrepreneurial personality on entrepreneurial motivation.
Generally entrepreneurship can defines as ruining up a new venture with some innovative
schemes. There are many business entrepreneurs such as Richard Branson and Alan Sugar who
inspired other individuals to be like them and start new business enterprises (Sarasvathy and
Venkataraman, 2011). These two business managers have some distinctive features which others
do not have. And these are categorised as under:
 Strong connection with employees
 Creativity
 Resolution
 Courage
 Risk tolerance
 Disciplined etc.
These Entrepreneurs motivate the youngsters by their experiences and other challenges
which they have faced in carrier life. It is not an easy task to become a powerful entrepreneur it
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requires lot of efforts to survive in competitive market place. Richard Branson and Alan Sugar
get higher achievements in their life only because they did not get hesitate in their past life. They
act as motivational teacher for general people. Individuals wants to follow the way that they have
grown their business. They have become role models for young generation and other business
persons as they have made a huge success in their profession. It is a tendency of human being
that people likes to follow the life style of successful persons (Schaltegger and Wagner, 2011).
So it’s the duty of entrepreneur that they should take e actions to consider social welfare and
economic growth. Individuals get inspired by their unique traits and skills such as their flexible
and adaptable nature. To be like them People also follow their life style. Entrepreneurs grow
business by their positivity and determined mind set. Positive nature of individual can help him
to tackle all tough challenges.
At the end, it is prove that entrepreneurial personality act as inspirational factor for
general people so that individuals can also take initiate action in their life and have positive mind
set toward future success.
P7. Background and past experiences that have promoted entrepreneurship
Background and experience plays a significant role in entrepreneurship. Mostly people
become powerful business managers because of their professional background. Individual gets
inspired by their family background (Shepherd and Patzelt, 2011). Positive and negative thinking
of a person is reflected by his background because it give values to individual's behaviour. If a
person has backcloth of business then he will make his carrier in only business activities that is
how background determine people. Backdrop of individual makes path for him that what he
should do or in which field should he start his carrier. Every entrepreneur has to face many
challenges and problems to get ultimate success in his life. Some of the struggles are lack of
money, social and technical barriers. In addition to this, it can be said that by having an effective
development of key values the Muhammad can have effective development of key skills.
On the other hand to operate the business practices, a person should have knowledge and
experience about same field so that Muhammad can take required actions for growth of his
business. Experience and knowledge help entrepreneurs in making organisational structure
which results in profit maximisation (Carland, Carland and Stewart, 2015). A person can have
positive as well as negative experiences in his life. Positive happenings can bring higher
outcomes but negative happenings can demoralize people towards their business and it will
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results in heavy loss for organisation. Government authorities also play a crucial role in business
start-ups as they are small in size so government provide them financial and technical assistance
so that they can grow in competitive environment. Now a days regulatory bodies of UK are also
taking initiatives to protect and promote micro and small businesses for the growth and
development of social economy. It is significant for Muhammad to have effective focus on
economic values so that better decisions can be taken into account. Professional values need to
be advanced in order to ensure that key aspects are well maintained. Powerful manager like
Muhammad has to go through many problems and troubles in his business carrier so he should
have flexible nature so that he can face all the challenges in his life and can compete his market
competitors.
CONCLUSION
In the study of entrepreneurship it is concluded that in recent times entrepreneurial
ventures are growing very well there are many kinds of business ventures such as social,
lifestyle, survival and business ventures which are operated by entrepreneurs or business
managers. With the establishment of various micro and small enterprises, growth and
development of economy has strengthen. Development of economy mainly derives from SMEs.
The success of any business enterprises totally depends upon entrepreneurs. Business managers
can compete in competitive business environment due to their some special characteristics, traits
and skills which distinguish them from other entrepreneurial personalities. Most powerful
managers also act as motivational tool for general people. Mostly people wants to follow the life
style of entrepreneurial personality. They inspire individuals to start new ventures and work with
determination. Because determination or positive mind set is a single way to achieve
organisational goals and objectives. Small business promotes local as well national economy and
it also provides employment for poor, skilled and semi-skilled people.
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REFERENCES
Books and Journals
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