Entrepreneurship and Small Business Management: An In-depth Study

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Entrepreneurship and Small Business Management
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Table of Contents
Introduction................................................................................................................................2
LO1- Varieties of entrepreneurial ventures and their aspects (P1 & P2)...................................3
Various entrepreneurial ventures and their relations with entrepreneurial typologies..........3
Various kinds of entrepreneurial ventures to acknowledge in public and corporate sector...4
Differences and similarities among three main entrepreneurial ventures..............................5
LO2. Influence of small business over economy (P3& P4).......................................................7
Exhibition of the impacts of micro and small business over economy, through statistics and
relevant data...........................................................................................................................7
The significance of small businesses in growth of social economy.......................................8
Dissimilarities among small, medium as well as large businesses with statistics and data,
against economy.....................................................................................................................9
Impact of small business over regional, local, national and international economy............10
LO3. Evaluate the major factors of the mind-set of an entrepreneur (P5 & P6)......................10
Skills and characteristics of successful entrepreneurs, making them different from normal
business managers................................................................................................................10
Reflection of entrepreneurial mind-set and motivation through entrepreneurial personality
..............................................................................................................................................11
Exhibit different aspects of entrepreneurial mind-set and characteristics, along with
arguments.............................................................................................................................11
Examine the driver of entrepreneurial traits, skills and motivation, through providing
example of few famous entrepreneurs.................................................................................12
LO4. Role of background in nurturing entrepreneurship (P7).................................................13
Determine the role of surrounding and background, by giving examples of famous
entrepreneurs........................................................................................................................13
Recommendations and conclusion...........................................................................................14
References................................................................................................................................14

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Introduction
In this description, different aspects of entrepreneurship along with its impacts on the
economy and market sectors will be discussed and described to the client in a brief manner.
Different kind of entrepreneurship venture and typologies will be described along with the
relations shared by these factors. Due to this trend of entrepreneurship, many people are
opting for starting entrepreneurship ventures. However, it is very crucial for acknowledging
several factors and details regarding entrepreneurship. In this description, the client will be
made aware of all the necessary information, which is required before starting any kind of
entrepreneurship. The role of the background of the entrepreneur as well as his skills and
roles required by the entrepreneur for setting up any kind of entrepreneurship or ventures will
also be exhibited in the description. At the end of report, several recommendations will also
be provided for the client for setting up the business.
LO1- Varieties of entrepreneurial ventures and their aspects (P1 & P2)
Various entrepreneurial ventures and their relations with entrepreneurial typologies
As opined by Drucker (2014), an entrepreneur is a person, who is an independent
businessperson, who set up business with the help of limited amount of resources. All the
risks as well as profits of the business are faced and enjoyed by the entrepreneur respectively.
The process of setting up the business and running the business is termed as entrepreneurship.
Being an entrepreneur requires many skills and knowledge, and all these characteristic traits
are the basis of the development and success of the entrepreneurship venture.
Entrepreneurship typologies
According to Dees (2017), there are various typologies of entrepreneurship, which can be
observed in the business sectors. Different types of entrepreneurship are followed by the
entrepreneurship typologies in different corners of the business sectors. These typologies of
entrepreneurship can be understood from few of the entrepreneurship typologies stated
below.
Entrepreneurship in Small business – This type of entrepreneurship is the most practiced type
of entrepreneurship in the market. As opined by Austin et al., (2012), it is the major
contributors in economy, among different business typologies. This entrepreneurship is

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started by an individual entrepreneur and local people are hired for working in this business.
Small businesses are mainly small general stores, salons, groceries shops, travel and tour
agencies and many much small businesses. As mentioned by Burns (2016), in this type of
entrepreneurship, motive is to obtain sufficient for satisfying the fundamental needs of life.
Scalable start-up entrepreneurship- These start-ups are what the entrepreneurs and investors
of business ventures of Silicon Valley do. In this type of entrepreneurship, small business is
started by the entrepreneurs with an exceptional as well as unique idea. As mentioned by
Welter (2011), these types of start-up are initiated by individual entrepreneurs on small scale
with the mission of expanding the business through inclusion of talented and skilled
employees and innovation in the business processes. Here, focus is on earning large market
shares.
Entrepreneurship in large organisations- As opined by Henrekson and Sanandaji (2014), this
kind of entrepreneurship is practiced by corporate entrepreneurs and is functioned on large
scale and the business is grown by fulfilling the demands and providing satisfaction to the
customers. The products and strategies are developed and new products and services are
produced by the companies for fulfilling the changing demands of the customers. However,
executing the changing strategies in this kind of entrepreneurship becomes very difficult due
to the large infrastructure and huge work culture of the organisation. As opined by Kuratko et
al. (2015), their focus is one earning more profits from the business.
Entrepreneurship in social context- This entrepreneurship can be done by individuals as well
as public entrepreneur. This entrepreneurship is famously known as social entrepreneurship,
in which, the main emphasis of the entrepreneur is to resolve the social issues and problems
and fulfil the social demands and requirement. In the opinion of Hunter (2013), the objectives
of these types of entrepreneurship are to work for the welfare of the society and to shape the
society much better. Their secondary objective might be profit in case of hybrid and for profit
business.
Various kinds of entrepreneurial ventures to acknowledge in public and corporate
sector
Entrepreneurial ventures
There are various kinds of entrepreneurial ventures present in the business sectors. These
different kinds of entrepreneurial ventures are mentioned below:

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Start-up - As mentioned by Breugst et al. (2012), this kind of entrepreneurial venture is setup
by either an individual entrepreneur or a collaboration of several entrepreneurs. This type of
entrepreneurship venture is initiated on small scale and the focuses of this start-up is on
earning profit and expansion of the business.
Franchise- In this type of entrepreneurial venture, an individual is collaborated with an
organisation or is provided the authority of running and operating any organisation, set up by
another party.
Acquisition- In this type of entrepreneurial venture, a pre-established business is owned by
another entrepreneur. As opined by Katre and Salipante (2012), with this entrepreneurial
venture, entrepreneur does not require starting or initiating any kind of new business.
New development- This type of entrepreneurial of venture is generally practised by corporate
and public entrepreneur. According to Brooks et al., (2014), this entrepreneurial venture is a
new business, which is incorporated in any ongoing company project or business.
Join venture- This entrepreneurial venture is started through collaboration of two different
organisation or business.
Public-private partnership-This type of entrepreneurial venture is established through
collaboration of a private and governmental organisation.
Relation between entrepreneurial ventures and typologies
Start-up is started by individual entrepreneurs and thus is related to small business
entrepreneurship. Franchise can be practiced by both individual as well as corporate
entrepreneurs, as they can be related to every entrepreneurial typology except scalable
entrepreneurship. As opined by Autio et al. (2014), acquisition is generally done for earning
profit; therefore, it is linked with large organisation entrepreneurship. New development is
related to every entrepreneurial typology as it can be used in each of them. Joint venture is
related to entrepreneurship in large companies as joint venture is used for increasing the
profit rates. Public private partnership is for the well fare of the society and thus can be used
in social entrepreneurship. In this manner, all the entrepreneurial ventures and typologies
share relations with each other.

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Differences and similarities among three main entrepreneurial ventures
The three main entrepreneurial ventures are lifestyle venture, smaller profit venture and high
growth. The similarities and differences among these ventures can be acknowledged from the
following table-
Comparison Lifestyle venture Smaller profit venture High growth venture
Differences  This entrepreneurial
venture is started for
earning smaller profit
by following the
personal interest and
hobbies.
 Expansion of business
Is not the focus of this
venture
 In this venture,
development of the
skills is the priority of
the entrepreneur.
 Daily performance and
earning is enhanced in
this venture.
 Working hours are
adjustable
 This entrepreneurial
venture is started for
earning a small
amount of profit
enough for carrying
out daily
requirements.
 Little expansion of
business is desired in
this entrepreneurial
venture.
 Earning little profit in
the business is the
objective of this
venture.
 Daily earning for
carrying out required
activities is enhanced
in this venture.
 Working hours are
adjusted through rate
of customer
engagement
 This
entrepreneurial
venture is started
for earning higher
amount of profit.
 Expansion of the
business to
maximum extent
is the emphasis of
this business
ventures.
 Gaining huge rate
of profits and
expansion of the
business to
maximum
regions is the
objectives of this
venture.
 Including
innovation for
delivering better
performance and
earn more profit
is developed in
this venture.
 Working hours

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are fixed.
Similarities  Performing based on new idea and concepts.
 All the ventures have more risk as compare to other ordinary
organisation.
 These ventures are set up by entrepreneurs, possessing open-minded
thinking.
 Products and service offered by these ventures are unique and
innovative.
Table.1- Differences and similarities among main entrepreneurial ventures
(Source: learner)
LO2. Influence of small business over economy (P3& P4)
Exhibition of the impacts of micro and small business over economy, through statistics
and relevant data
As stated above in the description, small and micro businesses are the major contributors of
economy. Majority of employment is offered by micro and small business only. As
mentioned by Miloud et al. (2012), more amount of capital is generated from small and micro
economy as compared to other business and economic factors. The small and micro business
of United Kingdom contributed towards the GDP of the nation. Around 48% of employment
in United Kingdom is offered by these small and micro businesses. This data can be observed
through observing the graph given below

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Figure.1- Share of small and micro business in UK
(Source: Researchbriefings.files.parliament.uk, 2019)
This has also contributed towards a considerable decline in the poverty level of United
Kingdom. Around 99.8 % of the private sector businesses in London are made by small and
micro businesses. In United Kingdom, there are almost 5.4 million of small and micro
businesses. As opined by Neff (2012), the export revenues generated from the business of
small and micro enterprises has helped in increasing the economy of the country.
As stated by Nicholas (2016), around more numbers of labours are generated through the
businesses of small and micro businesses. As compared to other nations, UK has higher rates
of job provision specifically in the retail and manufacturing sectors of the market. Small and
micro businesses of the United Kingdom are those enterprises, which provide general and
regularly used items and goods. This leads to the prosperous growth of the sales rate of the
small business, established in United Kingdom. As opined by Frumkin (2017), the main
sectors in which, small and micro enterprises functions are retail sectors, communication
sectors, construction sector and tourism sector of UK. In London, almost 2.3 million
employees are provided jobs in small and micro businesses.
The significance of small businesses in growth of social economy
Aliouche and Schlentrich (2011) stated that the previous economic years of United Kingdom
was filled with several forms of issues and hindrances. These issues were related to the
business sector of the nation and they comprised of several pros and cons related to small and
micro businesses. The economic down fall of the United Kingdom resulted in less spending

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capability of the consumers. As mentioned by Jasra et al. (2011), the disintegration of the
economy of the country was caused by several political factors. However, for bringing
improvement in the economic conditions, promoting the expansion of small business can be
very helpful for United Kingdom.
Turnover
Small and micro business of United Kingdom contributes more than 50% of the turn over
private sector of UK. According to Islam et al., (2011), this turnover is around 2 trillion-
pound sterling. Besides this factor, almost 99.5 percent in every sector of the industry is
represented by small and medium enterprises. However, when compared to other regions of
United Kingdom, London has the shortest base for the small and medium enterprises and
business, which accounts only 45 percent of employment. Aremu and Adeyemi (2011)
mentioned that the business turnover of small and micro business in the private sector of
United Kingdom is around 51 %, which means more than half of private sector’s turnover of
UK is represented by SMEs. This can be observed from the data, depicted in the figure 1
mentioned above in the description.
Growth
According to Agwu and Emeti (2014), when talking about expansion and growth of small
and medium businesses, impressive growth has been shown by SMEs. As mentioned many
times in the above sections, SME encompasses a huge space in the market and business
sector of United Kingdom. Along with this, it is also leading in case of employment rates.
Therefore, there is great scope of growth for SMEs in the business sector. It has been most
innovative sector among other sectors of business. New examples are set by SMEs leading to
increased competition in the market. Chittithaworn et al. (2011) argued that SMEs could
grow much further by continuing their innovative practices in future days.
Dissimilarities among small, medium as well as large businesses with statistics and data,
against economy
According to the global report, 2015, in the upcoming ten years, more than 600 million of
employment will be required on global scale. As opined by Kusmintarti et al. (2016), in such
scenario, SMEs have a very significant role to play on global level. However, it is observed
that SMEs lack around 50 percent of financial or capital investment. Whereas, more than
30% of income and more than 44% of jobs are represented by SMEs , comprising of all the
developing countries in the world.

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Benefits-
 Factors like employment, opportunity creation and expanding the taxation base are some
of the features of SMEs, which helps in developing the nation as well as global economy.
 According to Farooq et al., (2016), emerging entrepreneurs introduce modern innovation
and techniques in business and market.
 The growth of SMEs has been more than any other industrial sector.
 The primary sectors are also benefited though SMEs, as they are the service providers and
traders of this sector.
The disadvantages for SMEs are that they provide their products and services on small scale
as compare to large companies, which makes them lag behind the large corporation of United
Kingdom. The controlling power is more observed in large corporations and they deliver
service and products to large group of customer population. According to Loué and Baronet
(2012), it makes them the larger contributors of the economy of United Kingdom. They are
capable of occupying more economic resources as compared to SMEs. The service like
higher pay rates, various job and work opportunities and several facilities are provided by
large cooperation’s, which are lacking in SMEs. As opined by Sánchez (2013), larger
corporations have higher customer base, more brand image and reputation but along with
this, they also have to pay higher taxes to the government.
Impact of small business over regional, local, national and international economy
As opined by Elmuti et al. (2012), regional and local economy is highly dependent on small
and medium business, as very less or no large corporations are established in regional and
local areas. The local and regional employment is majorly dependent on SMEs. They provide
flexible working hours and pay rates, which attract more number of employment. SMEs are
the major contributors of the economy of their local government.
As mentioned by Gorgievski et al. (2011), people who are unemployed or retired, set up a
small start-up business, which increases social awareness of the trend of entrepreneurship.
The foreign trade developed by small businesses contribute in national as well as
international economy. In case of regional economy, there were more than 1095 small and
medium enterprises per 10, 000 of London’s residents. This shows the significant position of
SMEs in regional areas. In this way, SMEs affect the local, regional, national as well as
international economy. All these economies when combined represent significant
contribution in the global economy.

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LO3. Evaluate the major factors of the mind-set of an entrepreneur (P5 & P6)
Skills and characteristics of successful entrepreneurs, making them different from
normal business managers
According to Welter (2011), entrepreneurial behaviours and actions are highly influenced
from the personal skills and characters traits of an entrepreneur. There are some specific set
of skills and characteristic traits of entrepreneurship, which are required for being a
successful entrepreneur. Characteristic traits are those factors, which determine the
personality of an entrepreneur. On the other hands, as stated by Henrekson and Sanandaji
(2014), skills are those special and unique qualities, which help the entrepreneur in bringing
expertise in business activities and operations.
The skills and characteristic of a successful entrepreneur comprise of various kinds. As stated
by Kuratko et al. (2015), high motivation is found in successful entrepreneurs and they
provide motivation to their subordinates. Taking risk is one of the characteristics of a
successful entrepreneur. According to Hunter (2013), this facilitates better growth of their
business and creates new opportunities for the growth of business. Possessing self-confidence
is one of the characters of successful entrepreneur, which helps them in giving better
performance. As mentioned by Welter (2011), a successful entrepreneur develops their
business activities and operations through working high competitive environment. They have
passion about achieving organisational and personal goals. As mentioned by Katre and
Salipante (2012), this helps in upgrading the designation and performance of the
entrepreneur. Being flexible to the changes, occurring in the business environment helps the
entrepreneur in complying with the changing business trends.
Reflection of entrepreneurial mind-set and motivation through entrepreneurial
personality
Entrepreneurial personality is dependent on entrepreneurial skills needed for becoming a
successful entrepreneur. These entrepreneurial skills have very great impact on the business
performance and growth. Skills of dealing in different business circumstances reflect the
business management skills of the entrepreneur. As mentioned by Kuratko et al. (2015),
efficacious business skills help in growing and sustaining the business for future. Ability of
operating all the technological equipment, performing Calculation and mechanics are some of
the necessary entrepreneurial skills for developing the personality of the entrepreneur.
According to Burns (2016), through splendid communication skills and regular

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communication, entrepreneurs can provide motivation to the employees and workers. All the
business issues are solved and all the operational actions are effectively taken through
formation of appropriate decisions. As opined by Katre and Salipante (2012), the
entrepreneurial skills of resolving problems helps in mitigating the negativity from business
environment and it develops better entrepreneurial personality.
Exhibit different aspects of entrepreneurial mind-set and characteristics, along with
arguments
As opined by Katre and Salipante (2012), mind-set is nothing but the ideas and opinions of an
entrepreneur regarding the development of business through enhancing productivity,
motivating employees and developing quality of the business aspects. The background of an
entrepreneur is very significant factor for the development and built of the entrepreneurial
mindset of that entrepreneur. The upbringing and the access to resources determines the
actions and mind set of the entrepreneur. According to Burns (2016), the challenges faced by
the entrepreneur in his past year of business and the surrounding of the entrepreneur Is very
crucial in building of this mind-set. If the challenges faced and tackled were hard, then the
mind-set of the entrepreneur is found to be more developed and effective for the business.
Through this developed mindset, entrepreneurs introduce the society and business sector with
very new and unique ideas. Dees (2017) mentioned that these distinct skills and unique ideas
are also responsible for rejection of the entrepreneurs in some circumstance of life. This gives
rise to a developed entrepreneurial mind-set. Through this mindset, an entrepreneur motivates
the employees and enhances the business productivity with creativity. They do not tend to
miss any kind of opportunity and they always have positive thinking regarding their business
outcomes. This helps them in taking positive actions in the entrepreneurial career.
Examine the driver of entrepreneurial traits, skills and motivation, through providing
example of few famous entrepreneurs.
As mentioned by Drucker (2014), successful entrepreneurs create a highly motivated and
developing working environment in his business. They focus on providing more unique and
developing opportunities to the employees and focus on enhancing their performance in the
organisation as well. People like Ratan Tata and Richard Branson, are few of such successful
entrepreneurs with high motivation and unique entrepreneurial characteristics and skills.
Aliouche and Schlentrich (2011) stated that the upbringing of Ratan Tata was done in a
business family, which helped him in developing the unique entrepreneurial traits and skills