Report on Entrepreneurship and Small Business Management (Semester 1)

This report delves into the multifaceted world of entrepreneurship and small business management. It begins by defining entrepreneurship and exploring various venture types, including small-scale enterprises, scalable startups, social enterprises, and large-scale ventures, along with their interrelations and typologies. The report then assesses and interprets the significant impact of small and micro businesses on the economy, particularly in the UK, examining factors such as employment, GDP, and the influence of government policies. It further analyzes the contribution of small firms and startups to the growth of the social economy, especially after Brexit. Moreover, the report identifies and differentiates the key characteristics, traits, and skills of successful entrepreneurs compared to managers, while also exploring how background and experience can either hinder or foster entrepreneurial endeavors. The report concludes by summarizing the key findings and insights gained from the analysis.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Types of entrepreneurial venture and their interrelation with typologies..............................1
Similarities and difference between entrepreneurial ventures................................................3
LO 2.................................................................................................................................................4
Assess and interpret how small and micro business impact on economy..............................4
Small firms and start-ups contribute to growth of social economy after 'Brexit'...................6
LO 3.................................................................................................................................................7
Characteristics, traits and skills of entrepreneurs and differentiation with manager.............7
Entrepreneurial personality reflect entrepreneurial motivation & mindset............................9
LO 4...............................................................................................................................................10
Examine background and experience can hinder or foster entrepreneurship.......................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is the business which is executed by one or two member with an idea
which does not exist in market. Entrepreneurs are the people who research in market or feel any
issue in dealing in society. There is less resources because idea is new so entrepreneurship is
risky approach. There are some changes which has to be made in this business due to change in
demand of consumers. Entrepreneurship business can be done by person who accepts new and
innovative ideas and courage to take risk (Burns and Dewhurst, 2016). To run entrepreneurial
business, there is requirement of many resources, so it is essential for person to plan business
operations properly. These days’ trend for entrepreneurship is increasing government is
encouraging them. In this report, there is discussion about types of entrepreneurial venture,
impact of small businesses on the economy, characteristics, skills of entrepreneurs, different
environmental factors which are hinder and foster entrepreneurship.
LO 1
Types of entrepreneurial venture and their interrelation with typologies
Entrepreneurship is the business which is started by individual having new idea in mind.
This idea does not existing in society. This idea is fresh so there are possibilities of less resources
which might affect business growth and development. Typologies refers to different types of
business which has some basic motto behind starting it. These ideas are related to business
organisation.
Entrepreneurship business with some idea behind it. There is difference in concept of
every entrepreneur, so it is essential to deliver information about it. As there are different
entrepreneurial ideas, different ventures are set up. Entrepreneurship is the business which assist
in growth and development of economy of country. Some entrepreneurial ventures are discussed
as under-
Small scale enterprises- This is the business which is smallest in terms of revenue as
well as operations. This business operates at small level by one person or family members. There
is lack of funds, so some times this business gets shut down. These business are operated to earn
basic livelihood. With the revenue of this business, individual is able to fulfil basic need.
Scaleable start ups – This is the business which starts with one idea and entrepreneur
analyse market regularly to start new business. Hence in this business, person come with new
and innovative approach to launch new business (Doern, 2016). They launch new business,
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analyse it properly and then hand over to other person. These people are more crazy and they
want collaboration of similar mind-set people. These are the people who want to change world
with new energy. This venture is related to male entrepreneurs because these ventures are more
risk taking.
Social enterprise- These are the entrepreneurs who works for some social reason. There
are many problems which people residing in society are facing, so these entrepreneurs have
motto to resist them so image of society can be improved. They do not operate to earn profits.
They have main motto to serve society to improve condition of people. Social enterprise is
related to female enterprise because they have aim to provide society benefits.
Large scale enterprise- This are the largest business organisation which has main motto
to earn profits and business expansion. They have good amount of resources which assist them to
perform business operations in appropriate manner. They want long term sustainability in
industry, so they accept environmental changes. Lifestyle venture is related to large scale
organisation because they run according to current trends of market.
Apart from this entrepreneurship venture, there are some entrepreneurial typologies
which are related to these ventures. They help to achieve aims and objectives of entrepreneurial
ventures. Some of typologies are as under-
Male entrepreneurs- These enterprises run, operated and organised by men (Fayolle and
Gailly, 2015). They have power to take decisions and alter business operations according to
external market. Scaleable entrepreneurship belongs to male entrepreneurs because they have
more risk taking power and they can analyse external market in best and relevant manner.
Female entrepreneurs- These are the enterprises which is run, organised by female.
Social business entrepreneurs are related to this enterprise. They work for the social benefits
such as stitching work through which status of women gets improved.
Lifestyle entrepreneurs- As there is change in external environment demand of people is
changing frequently, so these business organisations are run as scalable and large scale
organisations. When change happens in demand of consumer so they accept it and take actions to
satisfy consumers. Hence they are able to make long term existence in industry.
From the above discussion it is clear that there is difference in reason behind mootto of
establishing business. Different typologies assist in making changes which are relevant and
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crucial for attaining growth in society. When entrepreneurs have knowledge about aim of
establishing business, then they perform operations in specified manner.
Similarities and difference between entrepreneurial ventures
From the above discussion, knowledge about different entrepreneurial venture can be
enhanced. They have different aims, objectives, actions which has to performed. But there are
some differences as well as similarities among them.
Similarities
Social scale and small scale enterprise- Both the business does not work to earn good
profits. Social enterprise works for social benefits and small scale organisation work to earn
livelihood, so there is no profit aspect in both the entrepreneurial ventures.
Scalable and large business enterprise- Both these business works for expansion.
Entrepreneurs of scalable business, starts new business with innovative concept. After its
succession, they start new idea which is not present in market. Similarly, large business also
works with an objective of expansion and earning good profits.
Large scale and social entrepreneurial ventures- Both the organisations have to
contribute for social benefits. Social enterprise purely works for social benefits (Julien, 2018).
This helps in performing operations for improving condition of society. Similarly, in case of
large scale organisation as per government norms, they have to contribute some percentage of
their revenue to social welfare.
Differences-
Small scale and Large business venture
Small scale venture Large scale venture
Small scale business operates to earn
livelihood.
While large scale organisation operates in
society for the purpose of expansion and
earning good profits.
They do not respond to changes frequently and
possibilities of closure because of lack of
resources.
They respond to changes because they want
long term sustainability in industry.
Small scale business have less competitor in
industry because they operated by single
Large scale organisation has many competitors
in industry, so they accept changes which are
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person or family members. taking place in industry.
Social business and scaleable enterprise
Social business venture Scalable start ups
Social business ventures work behind some
reason to improve condition of society
(Karadag, 2015).
Scalable business enterprise work on one idea
after its succession, entrepreneur takes actions
to launch future idea.
This works for social reason behind which
assist in improving living of standard.
While scalable start-ups regularly analyse
changes and then take actions for launching
new ideas.
LO 2
Assess and interpret how small and micro business impact on economy
Micro business organisations are the enterprise which has less than 10 employees at
organisation. Small scale business means organisation which has less than 50 employees. In UK,
there are many micro and small scale which assist in improving living of standard of people.
Small scale business gives positive impact on economy of UK because with these business
employment, revenue, GDP, inflation rate, etc. gets improves. There are different policies framed
by government which provides them assistance in establishing business enterprise. In UK around
48% GDP is due to small scale business (The importance of small businesses in the UK
economy, 2018). Small scale business assist in improvement in living of standards through
employment generation, improvement in infrastructure, etc.
Private organisation provide employment to people. As compared to last years, there is
increment in 2%. Annual turnover of private sector was £2.0 trillion out of which 52% is because
of small scale business (UK Small Business Statistics, 2018).
Government of UK frames different policies such as low rate loans, financial assistance
policies, space of business at lower cost, etc. which motivates individual to launch their idea in
market. With these business benefits for UK economy are as under-
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Increment in employment rate- When small scale business launches in economy. Then
there is requirement of some personnel to perform business operations. Hence there is increment
in employment rate which improves financial conditions of small families. When families have
source of income, this assist in improving their living of standards. People does not indulge
themselves in illegal activities, so UK economy gets positively affected.
Financial stability- In UK mainly people work at small scale. There are many policies
which ease them to pursue at micro and small level. Hence there are some taxes, revenues, etc.
which has to be paid by small businessman. Hence financial growth of UK economy is possible.
With the art work foreigners also gets influenced, so there is foreign currency reserve in country
which helps to maintain GDP inflation rate of UK.
Compatible to external environment- There are many changes taking place in external
environment, so with the help of micro and small business UK economy can be represented at
international level (Mariotti and Glackin, 2015). Small business deals in operations such as
painting, handicraft, so this attracts foreigners. Hence with the help of small and micro business,
external parties accepts new and innovative approaches.
Illustration 1: Role of Startups and Small Businesses in Today’s Economy
(Source: Role of Startups and Small Businesses in Today’s Economy, 2018)
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As per above chart, role of small scale business has largest role in business sector. Hence
they gives best for economic and social benefit of country. Government policies are lenient
because they provides financial benefits to country. Employment rate is large because of such
business which assist in reducing misconduct from society. Start- ups are launched with the help
of new and innovative ideas, so leniency in government policies motivate individuals to launch
business at society.
Small firms and start-ups contribute to growth of social economy after 'Brexit'
Brexit is the process through which Britain exist themselves from European Union. This
process is done with majority of more than half people. This situation is adverse for UK for
initial years, but in recent small business enterprise enhanced. Hence government makes policies
for growth and development of economy. In UK, after Brexit small scale business enterprise are
promoted.
Government make policies for small scale business (Mugler, 2017). As per change in
external environment, government analyse market and take actions to improve economy of UK
through business expansion. When small scale business gets promoted, then there are more
employment generation, improvement in GDP rate, inflation rate, etc. So economic stability can
be achieved with it. With the help of small business such as handicraft, painting, artisans, it is
easy for UK to represent themselves at international economy. Government makes policies to
promote small business operations so per capita income of country improves. People have
employment, so they are not indulge in wrong activities. Hence good environment can be created
within country. Small business gets different loans such as zero interest rate loan, space for
business at concessional rate, etc. This motivates individuals to launch their ideas in market.
People residing in society has good knowledge about changes taking place in
environment. They are ready to accept alterations taking place in society. So people are able to
resistance in environment for longer time. Export import activities of UK gets enhanced because
after Brexit international trade is also enhanced (Piperopoulos and Dimov, 2015). FDI in UK
also enhanced because policies are framed to invest money from others. This makes regular flow
of money within country. Hence financial stability can be achieved in UK. People accept
changes which are crucial and essential to maintaining up to date information. Hence it is clear
that with after Brexit, there is improvement in living of standards of people, they are more aware
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about international trade policies, so there is economic as well as social benefit to economy of
UK.
After Brexit, there are positive impact on small and medium scale business which are
relevant and crucial for maintaining good image at international level. People are aware about
changes which are taking place and hence living of standards improves.
LO 3
Characteristics, traits and skills of entrepreneurs and differentiation with manager
Entrepreneur is the person who has new idea which does not exist in society. There is
lack of funds so they have to utilise resources in appropriate manner. They are different from
managers in performing responsibilities. For instance: managers lead employees while
entrepreneur works himself like employees. There is discussion about two successful
entrepreneurs i.e. Bill Gates and Marks Zuckerberg.
Bill Gates is founder of Microsoft Software. While Marks Zuckerberg is founder of
Facebook.
Characteristics of Bill Gates-
Confident Open minded
Bill Gates is the person which is confident in
sharing his ideas with others. This
characteristic is lacking in managers
(Piperopoulos and Dimov, 2015). Bill Gates
has good confidence which assist them to
share business idea with society.
Bill Gates is open minded. They are ready to
accept changes which are taking place in
environment. They are open to people so it is
easy to accept alterations which are required.
Entrepreneurs thinks out of the box as
compared to managers. Managers work with
specified rules and regulations.
Characteristics of Marks Zuckerberg-
Dedicated System oriented
Marks Zuckerberg was dedicated to what they
are performing. They are ready to work day
and night to launch their idea. But managers
are not so dedicated. They work according to
Marks Zuckerberg is works according to set
system. They work according to set working
style. While managers does not work in
organised manner, hence they are not able to
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set standards and order from above level. achieve goals and objectives.
Traits of Bill Gates-
Self motivated Competitive spirit
Motivation is crucial for entrepreneurs but Bill
Gates has ability to motivate himself. This is
lacking in managers, they are not able to
console themselves give best (Scarborough,
2016).
Bill Gates has competitive spirit hence they are
able to make policies according to external
changes. Managers does not analyse external
market hence they lack in this skill.
Traits of Marks Zuckerberg-
Failure as par of success Highly adaptable
Marks Zuckerberg has idea to launch
Facebook, this was new concept at that time.
Hence they accept failure as part of success.
While managers loose hope because of failure
and hence they are not able to achieve goals
and objectives.
Current market trends changes with external
environment. Hence Marks Zuckerberg is the
person who accepts changes frequently. So
they upgrade with new features,. This trait is
missing in managers, they believe in working
with same set benchmarks.
Skills of Bill Gates-
Communication Ability to learn
Bill Gates have good communication and
interaction skills through which they can
inform related to their ideas to society.
Managers are not able to interact and
communicate new ideas which affects their
performance at work place.
Learning is one of the core function to launch
business idea successfully. Bill Gates has good
learning skills. He was passive reader, so this
makes him learn new ideas and thoughts.
While managers are not ready to learn. They
belief in their own knowledge (Siegel and
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Wright, 2015).
Skills of Marks Zuckerberg-
Financial management Stress management
There is lack of financial resources for
entrepreneurs because business idea is new.
Marks Zuckerberg optimally use financial
resources. Managers does not use financial
resources in optimally manner. So they are
chances of misuse of financial resources.
While launching Facebook, there was failure
also. So this gives stress to Marks Zuckerberg.
In this case, he was able to balance emotions.
While managers are not able to manage stress
at workplace. This affects performance of team
in negative manner (Storey, 2017).
From the above discussion it is clear that there is difference in characteristic of manager
and entrepreneurs which are relevant and crucial for making business idea successful. It is clear
that entrepreneurs have more zeal as compared to managers so they run behind business idea.
Entrepreneurial personality reflect entrepreneurial motivation & mindset
Entrepreneurial business can be succeeded with proper and regular improvement in
working style. Entrepreneurship business is the result of new and innovative idea which is not
present in industry. So it is responsibility of entrepreneur to make analyse external changes in
appropriate and relevant manner. If entrepreneur does not accept changes taking place in
environment, then they are not able to resist in industry for longer time (Volery and Mazzarol,
2015). Entrepreneur himself are responsible for failure or success of business idea, hence
individual's personality must be dynamic and ready to learn new things. This can be done with
the help of “Big Five Trait Model”. It is also famous with the name of “OCEAN” approach. This
model has five components which are discussed as under-
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Illustration 2: Big five personality traits
(Source: Big five personality traits, 2018)
Openness- Openness means individual must be ready to learn new ideas which are
happening in external environment. As there are any changes taking place in society, so to
launch and make business successful, entrepreneurs must be ready to learn new things. Bill Gates
is ready to learn thinks happening in society, so he is able to launch computer software and come
with up-gradations in it.
Conscientiousness- Conscientiousness talks about thought process of individual. While
starting a business, there is requirement of different aspects which are relevant and significant for
attaining goals and objectives. When entrepreneur is conscious related to changes taking place in
environment, then it is easy to implement to implement policies. Marks Zuckerberg has
knowledge related to current trends and possibilities of changes taking place in environment.
Hence he is able to make launch social media application.
Extraversion- Entrepreneurs must be extrovert so they can share their view, though
business plan with external parties. When idea for launching Facebook occurs in mind of Marks
Zuckerberg has lack of funds, so he have to share idea of launching Facebook with people, so
interest and craze can be developed (Burns and Dewhurst, 2016). This is fruitful for growth and
development. Entrepreneurs are able to take feedback related to new service.
Agreeableness- As changes are taking in environment, so merely its analysis is not
necessary, it must be implemented in working operations. Learning is the process which helps
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