Assessment Report: Entrepreneurship and Small Business Management

This report delves into the multifaceted world of entrepreneurship and small business management. It begins by examining various entrepreneurial ventures, including social enterprises, large companies, and small enterprises, along with relevant typologies like lifestyle ventures, growth firms, and social entrepreneurs, highlighting their characteristics and roles. The report then analyzes the impact of micro and small businesses on the economy, using data and statistics to illustrate their contribution and the importance of creativity and innovation. It explores the sources of business ideas and how intellectual property rights are protected. Furthermore, the report emphasizes the significance of small businesses and start-ups in fostering social economy growth. It identifies the characteristics, skills, and traits of successful entrepreneurs, differentiating them from traditional business managers, and assesses how entrepreneurial personality reflects motivation and mindset. Finally, the report examines how background and experience can both hinder and foster entrepreneurial endeavors, providing a comprehensive overview of the entrepreneurial landscape.

UNIT 9
ENTREPRENEURSHI
P AND SMALL
BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examine different types of entrepreneurial ventures and how they relate to typologies.......1
P2 Explore similarities and differences between entrepreneurial ventures.................................4
TASK2 ............................................................................................................................................5
P3 Interpret and assess relevant data and statistics to illustrate micro and small businesses
impact on economy.....................................................................................................................5
P4 Explain importance of small businesses and business start ups to growth of social economy
.....................................................................................................................................................8
TASK 3..........................................................................................................................................10
P5 Determine characteristics, skills and traits of successful entrepreneurs that differentiate
from other business manager....................................................................................................10
P6 Assess aspects of entrepreneurial personality reflect entrepreneurial motivation and
mindset......................................................................................................................................11
TASK 4..........................................................................................................................................12
P7 Examine relevant examples how background and experience can hinder and foster
entrepreneurship........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurs are the person who create and execute new and unique ideas into reality to
satisfy demands of the market and generating high amount of money. To operate an organisation
successfully, entrepreneurs are the backbone who are working effectively for generating high
revenues and also enhancing overall economy of nation (Dana, 2018). It also helps in providing
job opportunities to local people so that their living standards are to be enhanced. This report
includes various types of entrepreneurial ventures and typologies with similarities and
differences between several entrepreneurial ventures. Further it involves relevant statistics and
data that reflects impact of micro and small business on overall country economy. It also
explains importance of small and start up businesses to growth of social economy. In this
entrepreneurial traits, characteristics, skills also involved that helps in motivating and setting
their mindset related to become successful entrepreneurs. At last it involves entrepreneurial
background and experience that hinder and foster entrepreneurship.
TASK 1
P1 Examine different types of entrepreneurial ventures and how they relate to typologies
Entrepreneurship refers to an activity of setting up businesses or a firm by taking
financial risk in gaining profits. It is an creation of value that viewed as a change by entailing
risk for gaining revenues.
Entrepreneurial activity defines as a process of businesses where firms focus on
generating values by creating economic activities. These activities are related to exploration of
new ideas that is effective for growth of an enterprise. These new thoughts are effectively
converted into reality by offering goods and services to people through their business outlet
(Julien, 2018). There are several types of entrepreneurs such as serial entrepreneurs, owners
managers etc. In this serial entrepreneurs are those in which a person focus on creating and
executing unique ideas for operating business. This type of an entrepreneurial venture are
establish business with innovation and handed over to large enterprises so that it will sustain for
more time with more capital. On the other hand owners- managers are those who can handle
small business at the time of implementing change that occurs in business environment so that
enterprise will get high profits and revenues. They face major risk and stress in their business
life.
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Enterprise refers to a business entity that is developed for profit which is mainly
associated with entrepreneurial ventures. Person who have success in entrepreneurial venture are
often known as enterprising. There are several types of entrepreneurial venture which are
demonstrate below:
Different types of entrepreneurial ventures
 Social enterprise- These type of businesses are operated in business industry for welfare
and development of society and people. In this ventures are focus on developing new
ideas for development and benefits of society. These type of firms having more scope as
they offers high opportunities to local people so that their living standard is to be
enhanced. The main motto of these ventures are welfare of society not for earning
profits. Foe Examples- Save the children and many more.
 Large companies- These type of business ventures are operate at wide level where they
are working with huge capital, large size, high scope in number of employees etc. These
ventures offers products and services to wide level of customers base and focus on
expanding business operations at global level. This type of businesses need more money
to done their operations smoothly. These companies are sustaining in competitive market
where they focus on adapt the changes for gaining more profits and revenues. For
example- Tesco Plc, Blueberry etc. that are working as private firms and NHS as public
sector.
 Small enterprises- It refers to those businesses which are regulated and owned by a
person for satisfying requirements of local people. In this mainly one or two workers are
working that induces family and relatives. The size and scope of this ventures are narrow
because they operates on small scale by offering their products and services at niche
market (Dees, 2017). These type of businesses are operated by using partnership and sole
proprietorship. The main aim of development of these type of ventures is to gain profits
and livelihood. In these firms less then 50 employees are working with net worth of €2
million. For example- Orion electrotech limited that are based on private sector.
Different types of typologies
Entrepreneurial ventures are including several typologies that are linked with
development of an organisation for making the operations more effective. Some entrepreneurial
typologies are shown below:
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 Lifestyle ventures- It refer to that type of entrepreneurial typologies which are formed
for improving living standards of people in which enterprise is operate their operations.
These type of ventures offers employment opportunities to local area people and also
products and services to the people of that society. This fall under the small ventures
category because they focus on providing opportunities to local people in relation to
enhancing living standards.
 Growth firms- These type of organisations are operate their operations for generating
more profits and revenues. In this entrepreneurs are try to focus on implement new ideas
in their businesses for gaining profitable and productive results of an organisation
(Urbano and Aparicio, 2019). In this ideas are generated for satisfying customers needs
so that firms will maintain their longer sustainability in competitive market. Large
entrepreneurial ventures are fall under this category because they highly focus on
implementing new ideas as change to sustain in competitive market and generating high
amount of profits.
 Social entrepreneurs- It refers to that typology in which a person focus on welfare of
society not on earning profits. In this social enterprises are fall under this category as they
are working for benefits of people and society.
Roles and characteristic of micro, small and medium sized organisation
Basis Micro Small Medium
Role The main role of this
type of organisation is
to registered
phenomenal growth in
number of
employment,
production within
country (Yan and Yan,
2016).
The main role is to
enhance living
standard of local
people by providing
opportunities to
employment.
The main role of this
type of organisation is
to reducing poverty by
offering employment
opportunities to
number of people in
nation.
Characteristics In this number of
working employees
In this around 49
employees are
In this less than 250
employees are
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are 10 or less than that. working for gaining
profits.
working.
P2 Explore similarities and differences between entrepreneurial ventures
Differences
Basis Small business Large company Social
entrepreneurship
Scale These type of business
are operated on small
scale because they have
small amount of money
to operate business.
Large companies
operates at huge scale
due to this they need
more capital and money
for smooth running of an
operations (Brush, and
et. al., 2019).
These type of
businesses are operate
at local level who
focus on satisfying
needs of people for
their overall welfare.
Role The role of these
enterprises is to earn
standard livelihood for
living comfortably.
In this major role is to
earn high profits by
implementing new ideas
that satisfy customers
requirements.
Role of social
entrepreneurship is to
upliftment of local
people so that overall
living standard is
improved.
Key features These type of ventures
needs limited resources
and capital and also
interference of
government is low.
These organisations
needs more money,
capital etc. and also
having more government
intervention because of
wide level of operations.
Social enterprises are
working by getting
money from
government because
they operate for
society benefits.
Similarities
Basis Small business Large business Social enterprise
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Need Fulfilment These businesses are
operate for fulfilling
local customers
requirements.
Large businesses are
operated for satisfying
needs of huge level of
customers at local,
global and national
level.
It is formed for
fulfilling the needs
related to welfare of
people of society.
Society upliftment These type of
enterprise provide
local people
opportunities for
developing their living
standards.
In this employment
opportunities are
offered to number of
people in the country
related to innovative
goods for economy
enhancement.
In this opportunities
are offered to local
people to improve
quality of living beings
and also community.
TASK2
P3 Interpret and assess relevant data and statistics to illustrate micro and small businesses impact
on economy
Creativity and innovation
Creativity is a phenomenon where creative ideas are use to create something. It is an
ability to develop and express ourselves which is essential to become an entrepreneur. In this
innovation reflects as creation, implementation of new product and services for improving
efficiency to gain competitive advantage.
Main sources of generating business and entrepreneurial ideas
There are several sources related to generating entrepreneurial and business thoughts
which are demonstrate below:
 Interests and hobbies- It is very impactful and primary source for a person to generate a
business idea. Due to this, many entrepreneurs get high level of success while pursuing
their interest and hobbies (Singh and Gaur, 2018).
 Customer survey- For starting any business it is very essential to fulfil customers
demands. Customers needs and requirements are best source of generating ideas related
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to businesses. In this entrepreneurs are focus on conducting surveys like interviews,
observation etc.
In what manner business protect intellectual property rights
Register copyrights, patent and trademark- It is one of the best aspect to protect
exclusive rights of creating something. In this copyright is used to protect tangible and
intangible innovative works that can highly depending on nature of IP. Trademark is useful to
protect symbols, logos as it is a part of marketing strategy (Barringer, 2015) This helps business
to connect customers effectively. Patent is useful to in business to protect machine, product,
equipments for maximum 20 years.
Micro business- It refers to that type of an enterprise which offers employment
opportunities not more than 0-10 people. For example- ice cream parlour, small cafe and many
more. In UK these type of organisation contributes majorly in economy by satisfying customers
demand.
Small business- It refers to those venture who are working with around 50 employees
where they are working for generating high turnover i.e. 5 million. These type of businesses are
working with limited capital and resources. There are several types of small businesses such as
sole proprietorship where an individual person are working for generating profits, partnership
where two or more than two people are working for attaining common goals etc.
In UK, Brexit was taken place due to which many European countries are exit from EU
that creates issues for several large organisation in their operations, productions. In this time
small and micro business are highly contributes to UK government to enhance country economy
and maintains standard of living. To effectively analyse contribution of SME on UK economy,
data and statistics are to be presented below:
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Illustration 1: Role of Start-ups and Small Businesses

Illustration 2: source: UK SME data and charts
The above data interpret a contribution of SME on economy:
As per this information, in UK 99.9% businesses are worked under the SME section (0-249
employees) (UK SME Data, Stats & Charts, 2020).
0.6% are based on medium sized companies ( 50-259 employees).
less than 4% small enterprises (10-49 employees).
Micro businesses are more than 95% (0-9 employees).
P4 Explain importance of small businesses and business start ups to growth of social economy
Social economy operated by rich diversity of business ventures such as mutuals,
cooperatives, associations, social enterprises that shares common goals and features. It involves
ethics, norms etc. which supports people to buy offerings for shaping buying trends within
nation.
Start up business refers to that businesses where entrepreneurs are focus on inventing
innovation and implementing this to fulfil demands of market trends. It is a type of project that is
undertaken by an entrepreneur to develop, seek economic model.
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Impact of SME on economy
Local impact- Micro and small businesses are directly impact the local economy because
they provide products and services to local people in order to satisfy their requirements. These
type of businesses are formed after identifying needs of people (Goffee and Scase, 2015). By
analysing the demands of customers businesses also understand purchasing power of people so
that offering them products would be easy. Small and micro businesses are also provide job
opportunities to people so that they generate money for developing their standard of living that
supports development of local economy.
Regional impact- SME companies also impacted regional economy by offering
employment opportunities to regional people so that issues related to unemployment are solved.
High employment rate positively impact regional economy due to which operations are also
enhanced. It will maximise regional income that is used for development purpose.
National impact- SME firms impact the national economy because operations within
these type of businesses using less capital and money. They also focused on innovative ideas that
helps in developing productivity and proficiency of an organisation. Around 15.7 million people
are employed under SME's in UK economy that positively impact development of whole
national economy.
Importance of small business and business start-ups
 Growth rate- Start up and small businesses focus on generating huge income every year
by offering quality goods and services to people of society at affordable cost. This helps
in paying tax effectively to government that enhance financial resources of country. This
encourages other entrepreneurs to start their own firm for earning profits that will
maximise growth rate of country.
 Innovation- Start up and small businesses are working by doing innovation that helps in
developing economy of nation. These type of enterprises are offering innovating goods
and services for fulfilling customers demand so that their buying power is to be increased
(Katz and Green, 2018). This helps business enterprises to compete on global level that
helps in enhancing social economy of country.
 Employment opportunity- Small and start up companies are providing many job
opportunities to local people due to which size of these companies are enhanced that
indirectly supports economy of country. It also develops living standard of people and
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brings beneficial outcomes to the people of country. Due to this company turnover is
maximised because talented workforce work effectively by inventing new ideas and
implementing it on business operations.
TASK 3
P5 Determine characteristics, skills and traits of successful entrepreneurs that differentiate from
other business manager
In UK there are several entrepreneurs who are working with their unique skills, traits and
characteristics that helps in becoming a successful entrepreneurs. In this two entrepreneurs are
included that are focus on growth and success in professional career because of their special
skills. Some skills, traits and characteristics of an entrepreneurs are discussed below:
Characteristics
 Passion- It is an effective feature of an entrepreneurs through which they can efficiently
do their work without any complexity. Both the entrepreneurs i.e. Elizabeth Gooch and
Tom Mercer are passionate about their work due to which targets are attained on time. In
terms of business managers they losses their patience while performing activities as they
are not passionate about their working due to which proper decisions cannot be taken
(Urbano and Aparicio, 2019). In this way business manager are different from an
entrepreneurs.
 Hard work and self belief- It is also an essential characteristics due to which
entrepreneurs are performing their activities appropriately. This feature is present in both
the entrepreneurs i.e. Tom Mercer and Elizabeth Gooch as both carrying their work with
self confidence that helps in gaining success and growth in their organisation. It will
differentiate from other business managers because that cannot work hard on their
decisions as compare to entrepreneurs.
Skills
 Leadership- It is an essential skill for an entrepreneurs so that they effectively influence
employees for attaining goals appropriately. This skill present in both the entrepreneurs
i.e. Elizabeth Gooch and Tom Mercer due to which they give support and guidance to
people for working hard so that targets are attained on time. This skill is differentiate
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