Entrepreneurship and Small Business Management Report for CafePod

This report provides a comprehensive analysis of entrepreneurship and small business management. It begins by defining entrepreneurship and entrepreneurial ventures, followed by an examination of different types of entrepreneurial ventures, including small business entrepreneurship, large business entrepreneurship, social enterprises, and scalable start-up entrepreneurship, and how they relate to the typology of entrepreneurship. The report also highlights the similarities and differences between various entrepreneurial ventures. It then delves into the impact of micro and small businesses on the economy, using data and statistics to illustrate their contribution to employment and economic growth. The report further explores the importance of small businesses and business start-ups to the growth of the social economy, as well as the characteristics, traits, and skills of successful entrepreneurs. It assesses how background and experience can influence entrepreneurship, providing relevant examples. The report uses CafePod, an independent coffee company, as a case study throughout the analysis.

Entrepreneurship and
Small Business
Management
1

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Different types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship.....................................................................................................................3
Similarities and differences between entrepreneurial ventures..............................................5
LO 2.................................................................................................................................................7
Data and statistics to explain how micro and small businesses impact on the economy.......7
Importance of small businesses and business start-ups to the growth of the social economy9
Characteristics, traits and skills of successful entrepreneurs that differentiate them from other
managers...............................................................................................................................12
Assessment of how aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mindset........................................................................................................14
LO 4...............................................................................................................................................15
Explain using relevant examples, how background and experience can hinder or foster
entrepreneurship...................................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES .............................................................................................................................19
2

INTRODUCTION
Entrepreneurship can be defined as the process that involves designing, launching and
running of an innovative and new business that is initially small. An entrepreneurial venture is
usually set up by an entrepreneur, a person who sets up a new business with the main goal of
generating profits and is primarily focussed on providing services to early and middle level
companies (Belz and Binder, 2017). The size of an entrepreneurial business can vary depending
on the kind of services it offers. Personal experience and background can impact the way in
which an entrepreneurial business is carried out. Entrepreneurs need to have specific skills and
characteristics like strong work ethics, passion etc. to be able to run a venture successfully.
Entrepreneurship is important as it helps in creating employment, increasing the standards of
living of people and help the development of community. The company chosen for this report is
CafePod, an independent coffee company that is based in SW 18, London and primarily deals in
coffee. CafePod was founded in the year 2011 with the mission to help people get access to the
best strong coffee by Peter Grainger and Brent Hadfield (ABOUT CAFEPOD COFFEE CO.,
2020). This report is based on entrepreneurial and small businesses and describes the different
types of entrepreneurial businesses and the way they relate to the typology of business. It also
explains differences and similarities between different types of entrepreneurial ventures. Besides
this, the report also includes the characteristics and skills of a successful entrepreneur that
differentiate them from other business managers.
LO 1
Different types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship
Entrepreneurship can be considered as a process in which an entrepreneur emphasises on
rendering or providing advisory services to new ventures and middle stage companies. The role
of Entrepreneurial ventures changes according to different phase of organisation. It is about
learning or embracing how to deal with success, failure and risky situations. The term
Entrepreneurship venture focuses on start ups, large scale industries , public and corporate sector.
It will help employees to sharpen their knowledge,skill quality and abilities to identify
opportunity for small scale industries, as well as resolve their difficulty in extremely complicated
situations (Brush and et. al., 2019). In assistance of this, the main purpose is to increase sales
3

and profitability of the entrepreneurship for the future growth of business. They generally
convert new or innovative ideas into reality that results in contribution towards growth or
development of the company. There are four types of Entrepreneurial ventures which are
mentioned below -
 Small Business Entrepreneurship - Herein, It includes plumbers, food market,
hairstylist, consultants and travel agents who run their personal enterprise as well as hire
family members or general employees for growth of business organisations (Burns,
2016). The respective company, CafePod is an example of a small business
entrepreneurial venture.
 Large Business Entrepreneurship - Large companies are those who invests large
capital in their business in order to attracts large number of customers. Such organisations
have enough resources to move into another country for future growth or success of
business organisation.
 Social Enterprises - These companies emphasised on helping individual and works for
welfare and benefit of the society. It focuses on improving standard of living of people in
the society. It is considered as a non profit company whose main purpose is to
manufacture or deliver product to serve the social needs or wants as well as their
problems.
 Scalable start up Entrepreneurship - Hereby,From starting a company knows that their
vision or mission could change the universe. The main focus of this company is to attract
best financial investor for brightest future of the company.
Typologies of Entrepreneurship
From the above mentioned various types of entrepreneurship business, the identification
of typologies assists business can become more attractive. There are three types of typologies
which are given below:
 Growth firms - In this category, the main purpose is to maximise their revenues and
profit for growth or success of company. The Entrepreneur identifies those new or
innovative ideas that helps in enhancing the profitability of business organisation. In
addition to this, the focus of company is to effectively satisfy needs or wants of consumer
(DeTienne and Wennberg, 2016). The main purpose of these firms is to earn more
revenue or profit than industrial average over a period of time. It enhancing scale of
4

production thus it helps in earning more and more revenue for future growth or
development of business organisation.
 Lifestyle Enterprises - This enterprise emphasised on offering various job opportunities
to individuals thus it results in enhancing income or revenue of people. The main
purpose of this enterprise is to increase status, prestige and standard of living of people as
well as change their lifestyle and esteem.
 Survival Firms - Herein, the main purpose of enterprise is survival and maintenance on
long term basis. It mainly includes new venture or start up who works for survival as
well as enhancing goodwill or image of that company (Devece, Peris-Ortiz and Rueda-
Armengot, 2016). In this period the main focus is to make a unique or special image of
company in front of customer by satisfying their needs or wants.
Entrepreneurship ventures and typologies are related to each other and result in
enhancing future growth or development of company by reducing several problems related to
economy such as large scale companies emphasised on long term success or future growth that
helps in increasing efficiency of company. Furthermore, Small scale industry focuses on survival
or maintenance of business organisation. Moreover, Scalable start up enterprise knows from
starting that their vision or mission could change the universe so they emphasised on enhancing
lifestyle of individual that results in brightest future of the company.
Similarities and differences between entrepreneurial ventures
Similarities
Basis Small business Large Business Social
Enterprise
Scalability
enterprise
Meeting the
social need and
Upliftment
The aim of small
business is to
offer job
opportunities to
people as well as
satisfying wants
or needs of
consumers
Large scale
organisation
provided
resources to
individuals for
satisfying them as
well as enhancing
standard of
This business
focuses on
providing
resources to
people for
satisfying the
demands or wants
of people as well
The Scalability
enterprise
emphasised on
attracting
customer by
satisfying their
needs and wants
for bright future
5

(Doern, 2016).
CafePod aims to
become the
number one retail
brand for coffee.
living,status and
prestige of
people
as upliftment and
boosting of
standard of
individual in the
society.
of the company.
Profit Making Herein, the
purpose is to earn
profit for survival
or maintenance of
business
organisation.
The focus of
large organisation
is to gain more
and more profit
for the future
growth or success
of the company.
The aim of social
enterprise is
enhancing
welfare of society
thus helps in
increasing profit
of the company.
The motive of
Scalability
enterprise is to
gain profit for the
brightest future
of the company.
Differences
Basis Small Business Large Business Social
Enterprise
Scalable
Enterprise
Scale It operates at a
small scale
because they have
very limited
amount of money
to invest in the
enterprise
(Fayolle Verzat
and Wapshott,
2016).
This company
runs at large scale
because they have
a huge quantity of
money for future
success or
development of
the company.
These companies
operate at local
level with the
help of this they
fulfill needs or
wants of
consumer
Herein, enterprise
operates at niche
scale because they
knows their vision
or mission could
change or alter
the whole
universe.
Purpose The main aim of
small companies
is to earn profit
for survival,
The main purpose
of large scale
companies is to
gain more and
The main motive
of social
enterprise is to
enhance living
The main aim of
scalability
enterprise is to
attract best
6

livelihood or
maintenance of
business
organisation.
more profit for
execution of new
or innovative
ideas (He, Lu and
Qian, 2019).
standard of
people and focus
on welfare of
society.
financial investor
for brightest
future of
company.
Characteristics The requirement
of resources in
this type of
company is very
low as well as
involvement of
government is
also quite low.
The government
imposes several
rules, regulations,
policies and
procedure in
order to monitor
and control the
performance of
business
organisation. In
addition to this,
the requirement
of huge capital or
human resource is
more because
they run their
business at large
scale.
In this enterprise
government
provided
resources which
is required by
them in order to
to offer several
services to the
people of society.
The interference
of government in
scalable business
is at moderate
level. In addition
to this, the main
aim to provide
resources that
attract customer
for bright future
of company.
LO 2
Data and statistics to explain how micro and small businesses impact on the economy
A micro business is a small business that usually has a small number of employees (less
than 10 people) working for it and play a major role in the development of an economy. These
types of businesses are generally formed as a part of either partnership or sole proprietorship. On
7

the other hand, a small business is generally privately owned and is operated in a limited size
(Henry, Hill and Leitch, 2017). Most small businesses rely on intensive labour for their
functioning and are generally started with the primary aim of fulfilling the needs of customers.
Small and micro businesses contribute towards employment generation and overall development
of a community which is the reason why government within a country supports such initiatives.
For example- CafePod has grown to be the UK's 7th largest roast and ground coffee brand in a
metter of just seven years. Such businesses also bring in innovation and creativity within a
country which can be further enhanced to ensure overall development.
From the above graph, it can be concluded that small and medium businesses contribute
significantly towards the development of United Kingdom. Also, micro businesses contribute up
to 18.9% whereas small and medium business contribute 23.4% and 29.2% respectively
(Hosseininia and Ramezani, 2016). Thus, it can be clearly said that larger small and medium
businesses are more likely to trade their businesses internationally as compared to other
businesses.
8
Illustration 1: Brexit’s impact on small businesses: the experts may be spot on after all, 2020

(Source : STATISTICAL RELEASE, 2016)
The above graph states that United Kingdom has the presence of nearly 99.3% small
business with 33% of staff turnover. These business contribute to nearly 48% of employment
whereas medium and large businesses account for 12% and 40% employment respectively
(Kuckertz and Prochotta, 2018). Thus, United Kingdom has a large presence of small business
that contribute towards generating employment in the country (Julien, 2018). Small and medium
business have impacted the overall economy of United Kingdom in the way that it supports the
survival as well as growth of these businesses (Kuratko and Morris, 2018). To conclude the total
employment generated by these businesses increased over the last years to 15.7 million. Thus,
the environment in the country is favourable for the survival of small and medium businesses.
Importance of small businesses and business start-ups to the growth of the social economy
Small businesses as well as start ups significantly contribute towards generating
employment and the overall development of a country. Their importance to the growth of the
social economy is explained below -
 Employment of local workers – small businesses attract talent from local communities
and thus stimulate the overall growth of the economy (How Important Are Small
Businesses to Local Economies?, 2020). Start ups and small businesses drive overall
9
Illustration 2: SMEs and the Economy

growth of the economy in small areas. Also, these types of businesses operate locally due
to which they have the preference of hiring local people.
 Adapting to changes – Most small businesses have the ability of adapting to changes
quickly which is because they are primarily focussed towards fulfilling the needs of
customers. As a result of this, many local people are loyal to them.
 Diversity – Small businesses and start ups are more flexible and diverse which means
they have more potential as compared to large businesses (Karimi and et.al., 2016). A
high diversity within a business means that the country will be able to withstand
challenges and tough conditions. Small businesses as well as start ups have people
working for them from different backgrounds which makes them important for the
growth of the economy.
 Customers receive products quickly – The shops and markets that are nearest to the
customers are most preferred by them as they deliver products and other items to the
homes of the customers quickly. Thus, small business are important as they are the first
options that cater to the needs of the customers and satisfy the same. Customers of
CafePod are loyal to the brand and satisfied with the range of products it offers. Thus, the
respective company has planned to enhance its product offering by introducing a range of
high quality coffee products that are innovative and help the company in attracting more
customers.
 Backbone of an economy and Generate Competition – Small businesses and start-ups
form the backbone of an economy as they drive growth, open various opportunities for
them in the market and provide employment to the local people and also provide new
ideas as well as skills, thereby making the marketplace more dynamic (Kellermanns and
et. al., 2016).
 Innovation and Opportunities for Women – Small businesses as well as start-ups helps
in creating new and innovative ideas that can be implemented in the economy in order to
drive its growth. Also, such businesses provide various opportunities for women wherein
they can contribute their talent, earn money and thus ensure the growth of the economy.
Such businesses are innovative as the customers want to differentiate their products and
their delivery.
10

 Standard of living – Start ups and small businesses are important for the growth of a
social economy as they help in levelling up the standards of living of people in a country.
And this is done through the introduction as well as implementation of new and
innovative ideas that are useful for the customers and help in satisfying their needs and
also meet their expectations.
 Contribution towards Government revenue – Small businesses have to pay an
increased amount of taxes which can in turn be utilised by the government in the overall
development of an economy. Thus small businesses as well as start ups indirectly
contribute to the development as well as enhancement of the economy. Thus, small
businesses contribute to the overall GDP of the economy of a country significantly.
 Contribution towards Government revenue – Small businesses have to pay an
increased amount of taxes which can in turn be utilised by the government in the overall
development of an economy (Kuckertz and Prochotta, 2018). Thus small businesses as
well as start ups indirectly contribute to the development as well as enhancement of the
economy. Thus, small businesses contribute to the overall GDP of the economy of a
country significantly.
 Building relationships and Low Overheads – Small businesses know their customers
very well and thus maintain a healthy and positive relationship with them. As a result,
they have a complete understanding of their needs and wants. Also, since the businesses
are operated at a small scale, they have lower overhead costs. This means that the
products that are offered to the customers are low in prices.
Thus, small businesses as well as start ups keep the economy of the country strong as the
employees of these companies spend their salaries or earnings on purchasing different goods and
services at home (Kuratko and Morris, 2018). Also, owners of various businesses invest in their
respective communities through taxes that they pay etc. All small businesses and start ups don't
always remain small and have a high probability of succeeding and turning into large businesses.
Effect of Brexit on CafePod
Since coffee is traded in US dollars, currency will play a major role in the coffee industry
as a whole. The coffee that is now being imported in the UK has become more expensive which
has led to CafePod to increase the prices of its products (Coffee after Brexit, 2020). Brexit has
led to the creation of an uncertainty around the coffee industry which has in turn led to decline in
11

the confidence of investors, thus CafePod has to put its business plan of growing to UK's number
1 coffee on hold for now.
Characteristics, traits and skills of successful entrepreneurs that differentiate them from other
managers
A successful entrepreneur have several traits,skills and characteristics that make them
distinguish from other business managers. With these skills and traits they create new or
innovative ideas. The characteristics, skills and trait of entrepreneurs such as J.K rowling and
Mark Zuckerberg which is mentioned below -
Characteristics and Traits
 Passion - One of the most important characteristics of entrepreneur is being passionate
which assists them to work hard regularly in order to achieve goal or objective of the
organisation. This makes entrepreneur different from other business manager they give
too much time or efforts for future growth of the business. They always keep themselves
motivated towards achieving success in their work and not focusing upon unfavourable
situations. For instance, J.K. Rowling possess strong mental ability and contribute their
time and efforts in order to achieve goals and objectives of the organisation. Another
example can be Peter Grainger and Brent Hadfield, two South African friends who shared
a mutual love for strong and quality coffee. Their passion led them to buid CafePod, an
independent coffee company that today has grown to be the UK's 7th largest ground and
roast coffee brand.
 Hard work and Self confidence - The most important characteristics of an entrepreneur
is to have belief in yourself and to work hard regularly for it for future success or growth
of the business organisation (Mamabolo, Kerrin and Kele, 2017). For example J.K.
Rolling is hard worker and contributes their efforts and time on fulfilling dreams as well
as she proved that hard work actually does pay-off. Another example can be Mark
Zuckerberg, who have self-confidence and faith to work hard regularly for success of
social media websites.
 Open minded – Successful entrepreneurs know that every opportunity is a business
opportunity. Thus, they don't miss out any chance of pitching themselves and their
business to potential investors whose investment they think will be beneficial for their
12