Entrepreneurship and Small Business Management Report: Starbucks

This report provides a comprehensive overview of entrepreneurship and small business management, using Starbucks as a case study. It explores different types of entrepreneurial ventures, including high-growth and lifestyle ventures, and relates them to typologies of entrepreneurship. The report analyzes the impact of small and micro businesses on the UK economy, highlighting their contribution to job creation and innovation. It also examines the role of small businesses in the social economy, focusing on innovation, employment creation, and economic development. Furthermore, the report differentiates between the characteristics and skills of successful entrepreneurs and business managers, discussing entrepreneurial motivation and mindset. Finally, it considers how background and experience can influence entrepreneurial success, providing a well-rounded analysis of the entrepreneurial landscape and its impact on economic and social development.

Entrepreneurship and Small
Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Types of entrepreneurial ventures and there relation with typology of entrepreneurship .....1
P2 Similarities and differences between entrepreneurial ventures..............................................2
LO 2.................................................................................................................................................4
P3 Impact of small business on UK economy.............................................................................4
P4 Impact of small business in social economy...........................................................................6
LO3..................................................................................................................................................8
P5 Characteristics and skills of successful entrepreneurs and difference between a business
manager and an entrepreneur.......................................................................................................8
P6 Aspect of the entrepreneurial personality reflect on entrepreneurial motivation and mindset
....................................................................................................................................................10
LO4................................................................................................................................................11
P7 How background and experience can hinder or foster entrepreneurship.............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is a procedure where new business is identified by entrepreneurs who
are ready to take risk for running a new business with a hope that they will generate huge
revenue out of it. Small businesses are in need of good entrepreneurs to take there business in
market and by applying strategies they make there firm survive in market. Present study is based
on the company Starbucks that came into market as retail coffee stores which was new concept at
that time. The company came into market of Washington in the year 1971 and founders were
Gordon Bowker, Jerry Baldwin and Zev Siegi. The study includes different types of
entrepreneurial ventures and there relation with typology of entrepreneurship. There are various
similarities and differences between entrepreneurial ventures. Study also include impact of micro
and small businesses on economy. There is importance of small businesses on economic growth
which is studied in this report. Skills and traits of Entrepreneurs can be differentiated with that of
business managers which is explained further. Entrepreneur's mindset and motivation depends on
his Personality. Richard Branson and Philip Greens background helped them to become such
great entrepreneurs is explained in the report.
LO 1
P1 Types of entrepreneurial ventures and there relation with typology of entrepreneurship
Entrepreneur: An entrepreneur is an individual person who creates a business. They
make business plans and appoints labour, acquire resources and financing the business and
manufacture goods and services and earn profits(Burns and Dewhurst. Eds., 2016).
Entrepreneurship: On the other hand Entrepreneurship is refereed to human activity of
setting up a businesses, on taking of financial risks in the expectancy of profit. The new
opportunities of business initiates entrepreneurship.
Entrepreneuring therefore is needed for profit making business or organisation, but it is
associated with the entrepreneurial ventures. Individuals who have an entrepreneurial success are
often say to as enterprising.
An entrepreneurial venture is the one that engages with the growth and profitability of
the business and it is characterized by the innovation strategic practices(Amato and et.al 2017).
There are various types to be distinguished therefore, 3 venture type will be elaborated:-
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Types of Entrepreneurial Venture: High growth enterprise: A high growth enterprises is a firm which growing faster than its
peers. Such organizations are normally had an increasing in over all revenues in
comparison to industry average over a particular period. Starbucks is one of the example
of high growth firms. Aggressive Growth Venture: An aggressive growth firms are typically based on the
technological ventures with capability of innovation and growth and it is funded by the
equity capital. Their target market on which they were typically focus is national and
international market. It has an investment goal to have huge capital potential through the
mutual funds.
 Life Style venture: This are the ventures which provides a lifestyle to the proprietor of the
venture. It is a workable business framework and maintenance approach to the
management. It is very difficult to the employees to reach economics in the operations.
Typologies of entrepreneurship:
Typology basically means classification of a particular things according to specific types
that is dividing the thing into positive and negative parts. We use typology in order to divide a
part into different sub parts.
 Survival firms: It provides basic needs for the entrepreneur. Those firms who reinvest
their profits and expand their business operation and growth strategies for a long term are
the survival firms. This kind of organization applies cost cutting strategies or different
schemes for saving the cash of the business.
 Social : It Is the business which has some social objectives that contributes its particular
purpose. If the organization think that the maximization of profit will be benefited to
society or environment are the kind of social enterprises.
 Scalable: Those enterprises which have potential to generate the revenues and multiply
their revenues with the incremental cost are the scalable organizations. Many investors
are in search for such start-ups which are suitableness for investments.
There are more ventures apart from these three and the interesting things is that all
ventures can be classified into typologies.
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P2 Similarities and differences between entrepreneurial ventureres
Difference between entrepreneurial ventures:
High growth Aggressive growth
Management style It adapts a strategic management
style that is analysing competitive
environment, analysing internal
organisation and evaluating different
strategies to ensure that management
is using the strategies effectively in
the organisation or not.
Aggressive growth venture
adopts strategic as well as
proactive management style that
is it focuses on controlling and
managing the risks and in order
to reduce the risks they
emphasizes on proper planning.
Focus of management In these kinds of ventures
management focus on incremental
strategies.
In aggressive venture
management only on the
scalability.
Similarities of entrepreneur venture:
 Driving forces: There are many forces which is directly or indirectly affects the overall
growth and profitability of the organisation. There are three basic driving forces are :
management, resources and opportunities. If the Starbucks has a good management team
which captures the market opportunities with fulfilling the needs and wants of the market
than it will be in the growth stage and ensures tough competition in the market.
 Sustain against large business: All the ventures are willing to stable in the market for a
long period as possible as. There existing is depends upon their performance and
competition that how the performs in the market and what profitability and values the
grow in the future(Goss, 2015). All this conditions is needed to growth of the firm in the
market. If Starbucks is want to stable in the market for a long period than firm has to
maintain there performance.
LO 2
P3 Impact of micro and small business on UK economy
Small business:
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A small firm or business can be defined as a business with the maximum 250 employees
or the maximum 1500 employees. Such organization are privately owned by the corporations,
sole proprietorship or partnerships firms which have low revenues in comparison of large
business. Small company refers to those firms which dose nit have turnover of more than
$6.5million.
Micro business:
The business which operates on very small scale are called micro business. Turnover of
the firm not more than $632,000 and the balance sheet total must be not more than $316.000 and
the average number of workers could not be more than 10. This entity which meets the
conditions disused above are micro firms.
Impact of small and micro enterprises on the economy:
Statistics shows that there is very huge impact of small and micro enterprises in the
economy of UK. In 2017, there were 5.5 million private sector organization establishes. Behind
it the reasons are the grants and loans were provided by the UK government were increased.
United Kingdom has the highest numbers of SMEs in Europe(Julien, 2018). UK has around 70
SMEs over the 1000 of persons, which makes UK one of the leading Private sector holder among
the countries. Small and Micro businesses plays a wider role among the growth and development
of the economy, moreover, the enterprises brings the innovations into the market of UK. There
rae around 5.7 million SMEs in which 1.4 million are employing at the start of 2018.
4

Illustration 1: contribution of small business in economy
(source: Essential Facts You Should Know about SMEs in the UK, 2016).
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It should be kept in the mind that small and micro firms contributes huge role in the UK's
economy. It creates the job possibility. They share 99.3% of all the private business in start if
2016. Government of UK provided loans to encourage or initiates the small and micro
enterprises, the government could potentially corporates with the banks or financial institutes to
facilitate leading processes to the ventures. Over the past three years 60% of SMEs getting funds
from the externally. For the repayments of loans government is more prevalent and arranging the
programs like start ups accelerator.
P4 Impact of small business and business start-ups in social economy
Social economy derives the social behaviour and economy's relationship as it helps in
identifying behaviour of all the potential consumers towards the business as moral, ethic,
philosophies are related to economy of the business(Runyan and Covin, 2019). The social
economy is formulated with help of organization and enterprises which may include mutual,
foundation, association, cooperatives etc. Every economic sector like agriculture, banking,
production initiate social economy. Social economy improves the living standard of the people
and creates wealth for the organisation as well the nation. They crates job for the people and that
helps in growing economy of the nation. Out of all the small and micro businesses in UK, 95%
of the businesses in UK are social oriented. They are working for the benefit of the society.
Small business startup plays an important role for growth of social economy in following
ways:-
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Innovation:- Innovation plays a key role while a startup comes in market. When one come up
with new creative idea and convert it into product and services, a value is created for that
innovation. It becomes new trend in market and increase production of a small business. When a
small business come in market it not always remain small. With time and effective strategies it
can have huge market growth and production increases. There are many start up like Amazon
which were small business at starting stages but frequently reached the height of success with
help of innovation and surviving in changing environment.
Employment creation:- UK economy's backbone is small businesses as it help in bringing new
opportunity for the people who are unemployed. Buying and selling of goods in local market
brings economic benefit for the people living in locality(Yan and Yan, 2016). Every single
startup helps in bring new opportunity of earning for unemployed people. For starting a new
business it is not necessary that the person must be educated or have some degrees in hand. One
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Illustration:Future economic growth 2
(source: Impact of small business in social economy:Startups impact on economy of UK,
2006).

can start there small business in agriculture, food production etc, the thing only need to start a
new business is presence of mind about where to invest and how to generate funds(Saleem,
2017).
Lifestyles is changed:- In UK everyone search for new opportunity so that they can live a life of
standard by acquiring good knowledge. Start-ups are the best option to have a good lifestyle and
also it comes up with welfare of all people in the country.
Leading the diversification:- UK is having people who are diverse ethically as many of them
are outsiders and there culture, values, religion, languages vary from that of UK. This
diversification is very helpful as different business plans brings new opportunity and
employment increases with help of it. The expansion of new ideas towards the new culture helps
in development of small businesses(Storey, 2016).
Economic development:- As small businesses come to market they bring employment which
helps in economic development of UK. This brings new hope for the local people as poverty
slow down and improvement in growth of rural and urban areas are seen. Overall community
development take place in the country which bring ways for economic growth and development
of country is there. It also encourages national employment as at national level economic growth
is seen as unemployment get reduced with the help of new opportunities in hands of the people.
LO3
P5 Characteristics and skills of successful entrepreneurs and difference between a business
manager and an entrepreneur
Philip Green:- Chairman of Arcadia group an outfit retailer company is a great entrepreneur Mr.
Philip Green.
Skills of Philip Green:- Skills of Philip are as follows:-
 Communication:- Philip Green is having good communication skills with help of which
he is able to influence potential customers and also able to motivate employees of the
firm to increase the production level. For the same Philip is making good connections and
able to grow his business in many countries(Julien, 2018).
 Problem solving skills:- Solving problems quickly is duty of every entrepreneur who s
running a business. Philip green is ready for every situation coming towards the
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organization and he always finds an effective solution to reach there goals on time
without any conflict.
 Self motivated:- He is really an example of self motivated man as he started his business
again without thinking that he already had failed in it. But he took risk and his self
motivation helped him out.
 Resilience:- Having patience and handling stress is what every successful entrepreneur
must have. Philip Green is always confident and create a positive environment in the
firm.
Characteristic:-
 Passionate:- Philip Green is passionate towards his running business and work so hard to
achieve organizational goals. This is a characteristic of his personality which make him a
successful entrepreneur.
 Flexibility according to changes:- He is a person who believe in new changes and is
flexible in adopting every good change coming toward the organization which can bring
new scope for the firm. These changes help out in many ways and brings new opportunity
for the business by creating value in market(Amato and et.al 2017).
Richard Branson:- Founder of Virgin group, Branson is the most successful entrepreneur of this
generation.
Skills of Mr. Branson:-
 Passionate:- Branson was passionate from his childhood and also very creative. That was
the reason he come out with student magazine and opened virgin record.
 Finance management:- Branson is having Financial management skills with help of
which he manages finance of the company without taking help of other financial
institutions.
 Time management:- managing time is very important to become a successful
entrepreneur. Branson manage to do every thing on time and with same efficiency.
 Interpersonal skills:- If an organization is not having healthy working environment then
management will not be good. Relationship between employees depends on leader of the
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organization. Branson is having such interpersonal skills that all the investors and
stakeholder have a great believe on him and his work.
Characteristics:-
 Understand what you deliver:- It is important for a leader to understand what actually
they want to deliver to market and society to bring new scope for there business. To
become market leader Branson is having clear vision that as an entrepreneur he has to
work hard to rise there business in right direction(Saleem, 2017).
 Self motivated:- Branson is self motivated type of personality, this is only the reason that
he has achieved so much as an entrepreneur.
Entrepreneur and business managers differ in many ways as entrepreneur is a person who comes
up with an innovative idea and convert that idea into a useful resource that can be used as
offering product in market. On other side business managers are people who work in a particular
firm and manage different departments(Runyan and Covin, 2019). They don't focus on
innovation rather they just motivate there employees to work hard for growth of the firm.
Entrepreneurs are owner of the firm and business managers are just like other employees who
have to manage the business and will get a salary for the same. Business managers do not prefer
to take risk as they are financially strong but entrepreneur are risk takers as whole business is
dependent on there risk taking only.
P6 Aspect of the entrepreneurial personality reflect on entrepreneurial motivation and mindset
There are five entrepreneurial personality aspects which affect there motivation and
mindset:-
 Extraversion- Most of the entrepreneurs are extrovert in nature as they interact with new
people to bring business in there hand. Richard Branson is a personality having
extraversion aspect that help him to get connected with new people and increase his
business. His employees are also satisfied and retain for long duration as he
communicates to them and share organizational issues. On other side Philip Green also
have this personality that helped him out to start new business in new cities(Jones and
et.al., 2018).
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 Conscientiousness- As an entrepreneur one have to be conscious about the
responsibilities they have to fulfill as whole business is dependent on their decisions.
Richard Branson and Philip Green both are aware of their duties and they always self
motivate themselves so that they can reach there goals. As a good result Branson is
having such huge business scope and Philip Green started retail company by self
motivating himself as previously he faced a huge loss in his business(Goss, 2015).
 Agreeableness- Leadership skills are very essential for an entrepreneur as it help in
developing the business by having more and more connections in market. Philip Green is
able to express the things to employees as well as dealers which help him out to grow
business. Branson is also making good connections and has taken his business to
international level with help of this trait.
 Openness to experience- As an entrepreneur person must be open to take new
experiences and challenges, focused and creative. Richard Branson and Philip Green both
are having this personality(Julien, 2018). Branson always feel free of experiencing new
things and taking it in there business environment. He always come up with innovative
ideas of doing business and learn from previous mistakes. On other hand Philip Green's
creative and focused mind help the business to grow with speed in right direction.
 Neuroticism- Every individual has to deal with negative emotions coming towards them.
As an entrepreneur one have to control negative emotion like anger, depression etc.
Richard Branson and Philip Green both faced the situation where they failed and handled
the situations by self motivating themselves and having control on there emotional
aspects(Burns and Dewhurst. Eds., 2016). Philip Green faced so many failures but he
never got demotivated and always come up with better ideas.
LO4
P7 How background and experience can hinder or foster entrepreneurship.
Philip Greens:- Green is chairman of Arcadia group a retail company and was born in
the year 1952 in England. His father died due to a heart attack when he was just 12 years old. He
inherited his fathers business after their sudden death. He then started working for a shoe
importer before traveling to US and Europe as he left his boarding school at an age of 15 only.
When he came back at an age of 21 he set up his own business where he started importing jeans
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from east side to sell them to London retailers. In 1979 he got an idea to bought entire stock of
designer-label clothes from retailers and then he made lot of efforts by dry cleaning them and
wrapped them so that they may look new to customers and finally he bought new shop to sell
them and earn money out of them. He became chairman and chief executive of Amber day in the
year 1988 as he was good business man with right practices and innovative skills. He became a
discount retailer(Burns, 2016). He is a good leader and also motivate every individual working in
the firm to work efficiently so that they can achieve there long term goals. He is having a
positive mindset and have problem solving skills because of this reason only he has come out
from losses he faced.
Richard Branson:- Richard Branson was born in 1950, in England. At an age of 16 he
dropped out from his school and decided to do his own business. At starting he decided to create
Virgin records. As he was growing his mind was working for new ideas and in 1980 he come up
with Virgin Atlantic airline and series of Virgin mega stores. Presently this entrepreneur is
having control over 400 companies(Saleem, 2017). Every entrepreneur has a background and
Branson's past helped him to become a 16 year old young entrepreneur. From young age only his
vision was sharp enough. He was an innovative personality who thought differently and that
become his strength and scope for the organization. It is her positive nature which reflects back
in his organizations work culture. He is having all possible skills needed to run a successful
business as he is having good strategies and control over his negative emotions.
CONCLUSION
From the above study it has been concluded that there are entrepreneurial ventures which directly
or indirectly relates to typology of the entrepreneurship. There are relevant data which have
illustrated that micro and small businesses have a great impact on the economy. Report also
concluded that startups have played a great role in rising social economy. There are different
skill and traits on basis of which business mangers differ from entrepreneurs and it depends on
entrepreneurs' personality the ways they motivate themselves and have different mindsets
accordingly. Report finally concludes that background of Richard Branson and Philip Greens
leads them to become great entrepreneurs.
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REFERENCES
Books and journals
Amato, C. and et.al 2017. Regulatory modes and entrepreneurship: the mediational role of
alertness in small business success. Journal of Small Business Management. 55. pp.27-42.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Jones, P. and et.al., 2018. Entrepreneurship in Africa, part 3: Conclusions on African
entrepreneurship. Journal of Small Business and Enterprise Development, 25(5), pp.706-
709.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Runyan, R.C. and Covin, J.G., 2019. Small Business Orientation: A Construct Proposal.
Entrepreneurship Theory and Practice. 43(3). pp.529-552.
Saleem, M.A., 2017. The impact of socio-economic factors on small business success.
Geografia-Malaysian Journal of society and space, 8(1).
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Yan, J. and Yan, L., 2016. Individual entrepreneurship, collective entrepreneurship and
innovation in small business: an empirical study. International Entrepreneurship and
Management Journal, 12(4), pp.1053-1077.
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