Entrepreneurship and Small Business Management Report

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................................3
ACTIVITY 1...................................................................................................................................................4
ENTREPRENEURIAL VENTURE AND ENTREPRENEURSHIP TOPOLOGIES...................................................4
ENTREPRENEURSHIP TOPOLOGIES..........................................................................................................5
PUBLIC AND CORPORATE SECTOR ENTREPRENEURSHIP.........................................................................7
MICRO AND SMALL BUSINESSES IMPACT ON ECONOMY........................................................................8
DIFFERENCE OF SMALL, MEDIUM AND LARGE BUSINESSES MAKE TO THE ECONOMY SUPPORT.........10
IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-UPS TO THE SOCIAL ECONOMY GROWTH
...............................................................................................................................................................12
ACTIVITY 2.................................................................................................................................................13
ENTREPRENEUR.....................................................................................................................................13
SKILLS & CHARACTERISTIC TRAITS.........................................................................................................13
MOTIVATION AND MINDSET.................................................................................................................15
LINES OF ARGUMENT............................................................................................................................16
HINDER AND FOSTER ENTREPRENEURSHIP...........................................................................................17
BACKGROUND AND EXPERIENCE...........................................................................................................18
ENTREPRENEURIAL CHARACTERISTICS LINK WITH PERSONAL BACKGROUND......................................19
CONCLUSION.............................................................................................................................................21
REFERENCES..............................................................................................................................................22
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List of Figures
Figure 1: Impact of micro and small businesses........................................................................................10
Figure 2 : Contribution of different businesses..........................................................................................11
Figure 3 : OCEAN personality model..........................................................................................................20
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INTRODUCTION
This assignment for entrepreneurship and small business management covers the different
entrepreneurial ventures and entrepreneurship topologies and their difference and similarity.
This assignment provides the knowledge, how micro and small businesses impact the economy
of the country. This also includes the difference in different types of organization (small,
medium, large) and impact on the economy and how small business and startups contribute to
social-economic growth. This covers the characteristic traits and skills of a successful
entrepreneur and their motivation and mindset. This also covers how personal background and
experience helps to be a successful entrepreneur.
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ACTIVITY 1
ENTREPRENEURIAL VENTURE AND ENTREPRENEURSHIP TOPOLOGIES
An entrepreneurial venture is the business organization that works for the growth and aim to
make a profit from that. These organizations run by a person called entrepreneurs.
Entrepreneurial ventures focus on innovative and new offering. The goal of the Entrepreneurial
venture is to increase the profit by increasing the productivity of the product (Birley and
Stockley, 2017). To achieve the goal Entrepreneurs make some plans and involve some activity
towards that. The plan to produce a new product to increase profit, always prepare with new
strategies for a market move, study about the new technology and human behaviour, think to
establish new business for making more profit, always aware with the market condition (Birley
and Stockley, 2017).
Following are the Entrepreneurial venture.
 Private venture – The private ventures are the enterprises and business that work for
their own to make a profit. Government help doesn't require private ventures, even the
government can’t interfere in their operation (Austin et al., 2012).
 Public venture - Public ventures are the not-for-profit, social research, independent and
policy organization, that runs with the help of the government. Their mission is to work
for people by improving the policies’ effectiveness, programs for initiate community and
they especially effect for vulnerable societies (Austin et al., 2012).
 Social Venture – The aim of the social venture is to solve the social problem and give
social benefits. They are non-governmental business and earn to help and provide
services to needy people (Austin et al., 2012). Social ventures cover social problems, like
education, poverty, inequality, economic and environmental growth.
 Corporate venture – corporate ventures help to new startup companies; that comes
with innovative ideas in the market. These ventures invest corporate funds in such a
new business. These ventures are more flexible, cheap and faster to development of
business (Austin et al., 2012).
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ENTREPRENEURSHIP TOPOLOGIES
Strategic style - This topology helps the private, public and corporate ventures to organize their
employees in order to increase the productivity for business growth. It also provides help to
companies to ensure that their employees should be effective, loyal, flexible and updated
(Salavisa et al., 2012). This helps the social venture to transmit their vision to all over society. It
also provides an environment for people that are effective, so that they can increase their
growth and benefits.
Lifestyle ventures – Lifestyle ventures aim to change the lifestyle of people and try to make
that better. They try to modify and change the market trends for a better result (Salavisa et al.,
2012). Their biggest aim is to change the lifestyle of people rather than making a profit. They
get the reward in the form of positive in the market as well as people’s lives. These successful
changes may generate profit for them.
Similarities and difference between different ventures (Salavisa et al., 2012)
Entrepreneuria
l Ventures
Similarities Differences
Private Venture The aim of private ventures is to
make a profit which is quite similar
to a corporate venture.
Their aim to make a profit and
follow the trend of the market.
The government doesn’t help in
their functioning.
Public Venture Their aim is to help people and befit
them with proving product and
services. This is the same as a social
venture, which also works for social
benefits (Austin et al., 2012).
Their aim is to provide social
services to the people.
Sometimes the government helps in
functioning.
They are a very big organization.
Social Venture Social venture provides a social
benefit to society and never work to
Their main objective is to provide
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make a profit. This is slightly the
same as to both, public and
corporate ventures.
help to people and society.
They don’t aim to maximize their
business and never try to make a
profit (Austin et al., 2012).
Corporate
Venture
Their aim is to make a profit and use
that profit for the social benefit of
people. This is quite similar to a
private venture in the form to make
a profit and to social venture to help
needy people (Austin et al., 2012).
They always respond to changing
technology.
They provide help in the form of
corporate funds to new startups
(Austin et al., 2012).
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PUBLIC AND CORPORATE SECTOR ENTREPRENEURSHIP
Entrepreneurship - Entrepreneurship is a method of planning, implementing, designing and
launching a new business and organizes the existing. It also considers the risks come in the way
of this processing to make a profit (Kuratko, 2016).
Public sector – Public sector enterprises refer to companies which provide product and services
to the people at an affordable price and these are operated under the government. Public
sector entrepreneurship is defined as the declaration of advanced public policy creativities that
produce greater economic wealth by creating an economic environment (Bernier, 2014).
Corporate sector – Corporate sector is part of the company's economy. The corporate ventures
help to the new growing companies or startup to develop by providing corporate funds. These
new organizations come to know as the corporate sector organization (Kirzner, 2015). These
are the part of the domestic economy but don’t involve in the government economic activities.
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MICRO AND SMALL BUSINESSES IMPACT ON ECONOMY
Micro and small businesses are the keys to the economic development of every country. They
may not generate revenue like a large corporation but they play an important role in the
success of countries' economy (Liedholm and Mead, 2013).
There are mainly three ways that micro and small businesses donate to the nation. They
provide opportunities to the people so that they become financially independent, they also
create new opportunities for employment and inspire innovation (Liedholm and Mead, 2013).
Small companies have born with innovative ideas that anyone don’t believe in that. The big
companies have been born with such an idea and now become very successful (Liedholm and
Mead, 2013). If someone evaluates the data and statistics it won.t be easy to ignore the
importance of micro and small businesses.
One more advantage of the micro and small business is that they provide guaranty of money
back to the community. Stability of any nation is determined by their economic stability. The
micro and small businesses always work as a growth engine, that allows the government and
the people to utilize the ideas, services and products that are required to growth (Liedholm and
Mead, 2013). It also allows people to make their dream business as reality by gaining ideas and
implementing them according to their need. This encourages the people to be an owner of own
business.
Small-business assurance is at a high record said by a recent survey that has more than 2,000
entrepreneurs of small-business; it is conducted by CNBC and Survey Monkey (Liedholm and
Mead, 2013). Even with a coming up trade war and competitive job market, 33% of defendants
said they will increase employees in the upcoming year.
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Figure 1: Impact of micro and small businesses
(Source: Liedholm and Mead, 2013)
We can determine from the above figure, which is based on employees’ number so that we can
understand it is a micro, small and medium enterprises data statistics. So it is clear that micro
and small have a great impact on the economy (Liedholm and Mead, 2013).
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DIFFERENCE OF SMALL, MEDIUM AND LARGE BUSINESSES MAKE TO THE
ECONOMY SUPPORT
Small businesses provide support to the development of the economy of their country in an
effective way (Hillary, 2017). As they create job opportunities and encourage people with a new
innovative idea. They also influence people to become an owner by opening their own
business. Medium-Sized businesses also contribute to the economy of the country. As they also
provide greater jobs on high paying. These can be a startup call centre, network supplier,
hardware supplier and any training institute (Hillary, 2017). Large sized organizations always
contribute to the highest support for the economy. Their startup required at least 250
employees, so if any large organization is getting establish it create good employment at the
starting and as it will grow more jobs and more turnover provide a good impact. For example, IT
industry creates thousands of jobs every year (Hillary, 2017).
The statistics figure below shows the percentage of businesses, employment and turnover in
UK, with regards to all type of enterprises (micro, small, medium and large) in 2018.
Figure 2 : Contribution of different businesses
(Source: Hillary, 2017)
It is clear from the above data statistics of UK businesses, that micro and small businesses share
99% of total business in UK. They make a total turnover of 48% of the total and contributes to
providing 36% employment of total. This means that micro and small businesses cover almost
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all the place in terms of the business population, which is a big contribution to the economy of
UK. But the employment provided by the large businesses is 40% of all the business because at
the starting point they need more employees (Hillary, 2017).
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