Entrepreneurship and Small Business Management: A Comprehensive Report

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ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................................2
LO1..............................................................................................................................................................3
P1 EXAMINE DIFFERENT TYPES OF ENTREPRENEURIAL VENTURES AND EXPLAIN HOW THEY RELATE TO
THE TOPOLOGY OF ENTREPRENEURSHIP.................................................................................................3
P2 EXPLORE THE SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES................5
LO2..............................................................................................................................................................7
P3 INTERPRET AND ASSESS RELEVANT DATA STATISTICS TO ILLUSTRATE HOW MICRO AND SMALL
BUSINESS IMPACT ON ECONOMY............................................................................................................7
P4 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND BUSINESS STARTUPS TO THE GROWTH OF
THE SOCIAL ECONOMY............................................................................................................................9
LO3............................................................................................................................................................11
P5 DETERMINE THE CHARACTERISTICS AND SKILLS OF SUCCESSFUL ENTREPRENEURS THAT
DIFFERENTIATE THEM FROM OTHER BUSINESS MANAGERS.................................................................11
P6 ASSESS HOW ASPECTS OF THE ENTREPRENEURIAL PERSONALITY REFLECT ENTREPRENEURIAL
MOTIVATION AND MINDSET.................................................................................................................14
LO4............................................................................................................................................................15
EXPLAIN HOW EXPERIENCE AND BACKGROUND CAN HINDER OR FOSTER ENTREPRENEURSHIP.........15
CONCLUSION.............................................................................................................................................17
REFERENCES..............................................................................................................................................18
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INTRODUCTION
Earning money and profit is one of the biggest dreams of every organization and can be
achieved with proper strategy and process. Entrepreneurship is the process of learning about
the business along with the startup of new business by taking a risk and utilizing the resources
of the company. The entrepreneur is the individual who runs the company to earn profit rather
than to work as an employee. In this assignment, the learner comes to know about the types of
entrepreneurial ventures, the scope in small business and the benefits and impact of small
business of the economy and employment of the country. The learners also gain knowledge
about the challenges and barriers the country or individual face while starting a new business.
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LO1
P1 EXAMINE DIFFERENT TYPES OF ENTREPRENEURIAL VENTURES AND EXPLAIN HOW
THEY RELATE TO THE TOPOLOGY OF ENTREPRENEURSHIP
Entrepreneurship may be defined as the process of launching, developing and managing the
small business along with risk-taking and managing the resource. The process is followed by the
individual that wants to earn more profit from the business. The implementation of the process
needs risk-taking, managing the business and excellent utilization of the resource that leads the
business towards progress. The individual needs to have excellent knowledge about the
business and also need to have a financially strong foundation so that can bear the impact of
issues. There are many types of entrepreneurial ventures that help the individual to do business
in different ways (Morris et al., 2018).
Small business entrepreneurship
Majority of business in today’s world is a small business. In the UK most of the companies are a
small business and are not directly connected with any governmental association for profit. The
main motive of small business is to earn a profit that fulfills the basic needs of the company and
the individual and help in family support. These types of business don’t have any interaction
with the government bodies for earning a profit or for the expansion of the business. There are
many examples of a small business like grocery stores, consultants, and electricians (Zahra and
Wright, 2016).
Scalable startup entrepreneurship
In scalable startup entrepreneurship the entrepreneur focus on starting a business that changes
the viewpoint of the world. In this type of business, the owner of the company hires some of
the skilled and talent employee that will help in business expansion and in innovating
something new that changes the vision of the world. The funding for the setup of business in
the scalable startup entrepreneurial venture is done by different sources such as funding by the
owner or taking a loan from another source. These types of business believe in risk-taking for
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the development and growth of the company. There are many examples of scalable ventures
like online shopping sites, Facebook, Instagram (Zahra and Wright, 2016).
Large company entrepreneurship
Large company entrepreneurship can be defined as the ventures that expand their business for
earning profit and growth. The company believes in the innovation of new products along with
the core product that will help in gaining popularity in the market (Zahra and Wright, 2016).
Social entrepreneurship
Social entrepreneurship is the setup and development of the company that works for the
welfare of the people. The aim of the entrepreneur is to help the poor and to save the culture,
socialism and environment of the country. The company gains fund by donation and charity and
use the donation for the goodness of people (Zahra and Wright, 2016).
TOPOLOGY OF ENTREPRENEURSHIP
Public entrepreneurship
The entrepreneurship done for the welfare of the city is known as public entrepreneurship. The
company primarily focuses on providing excellent services and products to the consumer at a
minimum and affordable range (Elo and Servais, 2018).
Individual entrepreneurship
The entrepreneurship in which the all the roles and responsibilities are carried out by an
individual and there is no other member or partner involved in the development, manage and
profit of the company (Elo and Servais, 2018).
Corporate Entrepreneurship
The main aim of corporate entrepreneurship is the innovation of new products that makes the
life of the customer easy and comfortable and helps the company in earnings growth and profit
(Elo and Servais, 2018).
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P2 EXPLORE THE SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL
VENTURES
All the ventures are different from each other in the way of working and aim also there are many
similarities between them and are as follows:
Entrepreneur ventures Difference Similarity
Small business ventures The small business ventures
work for the earning high profit
for the company and for the
development of the business.
The company tries to expand its
business for more earning and
profit.
All the ventures work for the
expansion of the business and
for that take risk and utilize the
risk as an opportunity that will
help the ventures in business
expansion and in earning more.
High growth ventures The high growth ventures focus
on providing better and
convenient services to the
consumer with the help of
innovation and technology
whereas the main aim of other
venture is the business
expansion for earning money.
The lifestyle venture relates to
the welfare of the customer.
All the types of venture
emphasis on providing excellent
and quality services to the
customer in value of money. The
venture tries to satisfy the
customer and also the basic
need.
Lifestyle Ventures The strategies followed by the
ventures are different in order to
achieve success. Small business
venture uses the strategy of
taking risk of providing better
services to the customer.
Lifestyle ventures add more
employee for the business
expansion and also analysis the
The expansion of the business
along with the profit and
development is the main aim of
all the ventures and so all the
ventures take the risk for earning
a profit (Mohanty, 2015).
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need of the customer to fulfill
their needs. High growth
ventures focus on the demand of
the customer and accordingly try
to invent new products and
services that will help in the
expansion of the business.
The aims and objectives of the ventures change with the priority and according to the sector. There are
two sectors and the venture works according to them such as public and private sector. The process and
methods of both sectors are different (Mazzucato, 2015).
Private sector venture
Private sector venture is those that work for the earning profit and for the development of the
company. The venture does not have any connection or coordination with the government bodies and
works individually. All the roles and responsibilities are managed by the company. All the earnings and
losses are on the company and the company is responsible for managing all the issues (Mazzucato,
2015).
Public sector venture
Public sector ventures are managed by the government bodies and are responsible for the growth and
development of the company. The company works for the welfare of the citizens and all the risk and
profits are shared by the government of the company. The venture tries to minimize the issues of the
citizen with the help of products and services (Mazzucato, 2015).
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LO2
P3 INTERPRET AND ASSESS RELEVANT DATA STATISTICS TO ILLUSTRATE HOW MICRO
AND SMALL BUSINESS IMPACT ON ECONOMY
ROLE OF SME IN ECONOMY OF THE UK
Micro and small business are those that work for earning a profit that will help in business expansion
and in fulfilling the need. The economy of the country is impacted by the small and micro business as
most of the companies in the UK are small business ventures and so there is a major impact on the
economy of the country. The profit to the small ventures enhances the economic rate of the country
and also increases the chances of employment whereas if the company is in a loss in impacts the
performance of other companies and leads the economy of the country downstairs. The small business
contributes in increasing the GDP of the country as well as enhances the economy of the country (Rizos
et al., 2016).
Figure 1: Role of SME in the Economy of the UK
Source: Stockwood, 2019
The UK has the majority of the small business and plays an important role in maintaining the economy of
the country. The UK has 99.9% SMEs in total number in business out of which 59.1% are private sector
and approximately 48. 7% are public sector companies. The business provides a high turnover in the
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economy of the country. If the company earns more profit in business the economy of the country
increases automatically whereas small loss in any of the small business impacts the whole economy of
the country and thus the SMEs needs to focus the productivity and profit of the company (Rizos et al.,
2016).
ROLE OF SME IN THE EMPLOYMENT OF THE UK
Micro and small business provides approximately 15.7 million employment to the country. According to
the survey the employment rate of the UK is highest among other countries. The SMEs are driven by a
number of sectors in the UK and that is one of the major aspects of the increased employment. The
companies’ tries to reduce the debt that helped the sector in increasing the employment rate as fell to
£166 billion at the end of 2016 whereas in 2011 the loan rate is £200 billion (Ormazabal et al., 2018).
Figure 2: role of SMEs in the employment of the UK
Source: SB, 2019
Employability of the country directly relates to the economy of the company and so it is important for
the company to increase the employability within the country. The development and expansion in the
small business ventures increased the rate of employability within the country that has a major impact
on the economy of the country in a positive manner. The employment rate in the UK is highest in the
world and is only due to the expansion of small and micro business in the country (Ormazabal et al.,
2018).
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P4 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND BUSINESS STARTUPS TO
THE GROWTH OF THE SOCIAL ECONOMY
Social entrepreneur contributes to the welfare of the citizens and for developing the economy of the
country. Social ventures play an effective role in providing employment that directly influences the
economy of the country. The main aim of social ventures is helping the citizen of the UK and in providing
employment that improves the life of the citizen and thus improves the economy rate of the UK. The
venture also focuses on maintaining the socialism and cultural awareness within the country.
Maintaining the socialism and culture help in satisfying the citizens need and thus provides overall
development of the country (Sastre Castillo et al., 2015).‐
The social entrepreneur's venture helps in reducing the conflicts and social issues within the country and
in between the citizen. The issues related to socialism and culture impact many factors of the country
and thus it became important for the ventures to reduce the issue for the overall development of the
country. The venture tries to enhance the economy rate of the country and does not have an interest in
earning profit for the company. The small business helps the social entrepreneur in enhancing the
economy of the country. There are many factors that are impacted by small business in the UK (Sastre‐
Castillo et al., 2015).
Lifestyle
The improvement in the small and social business in the UK improved the lifestyle of the citizens of the
UK. The increment in the business provides many opportunities like employment and also by the
donation and charity by the companies. Providing a better lifestyle to the citizen is the responsibility of
the country and thus the country needs to enhance the productivity of the small and social business
(Carraher et al., 2016).
Employment
The social entrepreneur focuses on increasing the job opportunities for the citizen of the country.
Increase in the employability within the country helps in maintains the economy of the country and also
the socialism, peach and satisfaction within the citizens. A healthy environment is important for the
overall development of the country (Carraher et al., 2016).
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Culture
Maintaining the culture in the country is important for the peace and liberation of the citizens. The
firmness of the social issues helps in maintain the culture of the country. Social venture helps in
resolving the problem related to culture and socialism and contributes to improving the quality and
services of the country in comparison with other countries. Also maintaining the culture helps in
maintaining the reputation of the country in the world (Carraher et al., 2016).
Economy
The overall growth and development of the country depend on the economy of the country and so it
became important for the social and small ventures to maintain the economy of the country. The
ventures help the country in increasing the economy by providing more employment and by increasing
the productivity & growth of the company. The economy is impacted by the earning of the companies
and thus the companies need to focus on the profit rate (Carraher et al., 2016).
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LO3
P5 DETERMINE THE CHARACTERISTICS AND SKILLS OF SUCCESSFUL ENTREPRENEURS
THAT DIFFERENTIATE THEM FROM OTHER BUSINESS MANAGERS
Entrepreneurs are the individual that is responsible for the setup, development and management of the
business on a small scale. The main of entrepreneur is the earning money that will fulfill the needs and
contributes in living a standard life whereas managers are the individual that is responsible for
management and development of the company but have no role in the setup of the business and thus
the main aim is earning more and more profit from the business for business success. There are many
qualities and characteristics that make the entrepreneur different from manager and emphasis in
providing the importance of the entrepreneur in the overall development of the country and economy
(Gedik et al., 2015).
Characteristics Manager Entrepreneur
Risk taker The manager has the skill of risk-
taking but mostly the manager
avoids to take the risk as the
impact of the risk may be
negative or positive that the
influence of the performance of
the company very badly.
Risk taking is a vital skill the
entrepreneur has. The
entrepreneur has the capability
to take the risk and to convert
the risk in a positive aspect that
helps in earning a profit.
Resourceful The creativity of the manager
plays an important role but most
of the time the responsibility of
innovation and creation of new
products depends on the other
department of the company and
the manager is only responsible
for the granting the permission.
Entrepreneurs are more creative
and because of creativity skill
has the competence to set up,
develop, and manage the
business individually. The
entrepreneur needs to be
created because the overall
profit of the business depends
on the creativity of the
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