Entrepreneurship and Small Business Management: A Comprehensive Report

Desklib provides solved assignments and past papers to help students succeed.

Entrepreneurship and Small Business
Management

Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................4
Different types of entrepreneurial ventures and typology of entrepreneurship...........................4
Differences between serial entrepreneurs, intrapreneurs and owner managers...........................6
Public and corporate sectors........................................................................................................7
LO2................................................................................................................................................10
Impact of micro and small businesses on the UK economy......................................................10
Social economy..........................................................................................................................11
Importance of start-ups and SME’s to social economy.............................................................11
Differences made by SME on the local, regional, and national economy.................................12
LO3 & LO4: Report.......................................................................................................................13
Characteristic traits and skills of successful entrepreneurs.......................................................13
Assess how aspects of the entrepreneurial (such as Alan Sugar, Richard Branson, etc)
personality reflect his entrepreneurial motivation.....................................................................14
The characteristic traits, skills, and motivational drivers of successful entrepreneurs..............15
Effect of different environments (background and experience) on entrepreneurship...............15
Conclusion.....................................................................................................................................17
Reference List:...............................................................................................................................18

Introduction
Globalisation has become a major factor that is affecting the growth of several industries around
the world and the introduction of small and medium-sized business has resulted in extensive
organisational transformation. These industries have been able to sway the level of GDP in
different countries and have been able to enhance the standard of living of the people around the
globe (Ramachandran 2016). The young minds are inclined towards entrepreneurship in the
modern day world, which has been heeding the business operations, and helped the people to
benefit from different markets and trade, and develop small and medium-sized businesses in
contemporary markets. This study will focus on the way in which different organisation and
entrepreneurs can manage the development and the impact of small and medium-sized
businesses in different markets around the world. There will also be an illustration of the
different venture types and the key aspects of the entrepreneurial mindset will be determined.
Finally, it will also be understood how different environment hinder and foster entrepreneurship.

LO1
This part of the study will be focusing on analysing the various aspects of entrepreneurial
ventures and the different types and typologies will be discussed as well. It will also show the
differences between different entrepreneurial ventures and will show the importance and the
difference between public and corporate entrepreneurship. Finally, it will show the scope,
development, and growth of entrepreneurial ventures.
Different types of entrepreneurial ventures and typology of entrepreneurship
In the modern day world, there are several entrepreneurial ventures and types of entrepreneurship
and some of them are mentioned below:
Corporate entrepreneurship is very common, these types of entrepreneurs are responsible for
bringing prosperity and developments to certain organisation or company, and the main motive is
to increase the profits as much as possible (Galloway et al. 2019). This type of entrepreneurs
takes active part towards meeting the primary goal of the company and allows other people to
participate extensively so that the short-term goals and the primary goal can be achieved. Several
strategies are used by this kind of entrepreneurs so that they can generate healthy revenues every
time and can bring in development that can help it to cope with the market demand (Geetha and
Deepa 2019). The roles and responsibilities of the entrepreneur are solely concerned with earning
major revenues and healthy profits and they can be divided into small-scale businesses and
multinational business entities.
Social entrepreneurship is concerned with social activities helping the public with a particular
social cause or motives to work on. This kind of entrepreneurs are responsible for looking at the
social conditions of the nearby areas and to eradicate the issues associated with the organisation
so that it can be dealt with in an efficient manner (Crowther and Seifi 2018). This kind of
business has a large-scale presence, and most of the companies focus on eradicating the issues
faced by the public.
Private entrepreneurship is much more concerned with generating maximum revenues and
profits so that the organisation can grow and influence the market. This is where the

entrepreneurs implement different frameworks and organisational policies, which help to
generate maximum revenues and profits allowing the company to introduce innovations in the
products and services (Dees 2017). This kind of companies ranges from medium scale to large
business organisations and they do not focus at all on the development of the public.
Public entrepreneurship is the opposite of a private entrepreneurship and they look into the
various public policies, frameworks, and sees whether they are implemented or not. These
companies are also responsible for the benefits of the public however; they also try to gather
revenue by performing their actions. They try to look into the fact whether the policies and
regulations are well enough (Julien 2018). These type of organisations range from big corporate
houses to small-scale start-ups carrying on their business activities on an extensive basis.
The typologies are as follows:
Lifestyle Ventures are run by lifestyle entrepreneurs who try to generate maximum revenues by
creating a deep impact on the lives of the people. These people are concerned with innovating
the products and services they offer and they try to convert their hobby into their business.
Survival ventures are rare and these companies operate in such a way that can manage to
survive in the market. These companies face difficulties in generating funds and acquiring
capitals to run the business operations. The capital is in the form of liquid money or barter
system (Masrani et al. 2018).
Managed growth venture organisations have a periodical growth and employ stable activities
by expanding the product range steadily and hiring employees in a periodical manner. This type
of companies focuses on slow but steady growth in the market.
Aggressive growth ventures are organisations that employ extensive technologies and
strategies, grow immensely in the market, and use every opportunity they have to increase their
sales and dominate the syndicate.
Small-scale organisations have very few people like less than 50 people whereas a medium-
sized enterprise has nearly 250 people working for the company. Micro enterprises have less
than 10 employees and large sized enterprises have more than 250 people. The infrastructure

and the revenue of small and medium-sized companies are quite low whereas the revenue of
large enterprises is extensive (Morris et al. 2018).
Differences between serial entrepreneurs, intrapreneurs and owner managers
Intrapreneurs Serial entrepreneur Owner managers
Motive These people are concerned
with independence and the
ability to advance in
corporate rewards (Aikens
and Peterson 2017)
These people are much more
concerned with opportunities
to create money and come up
with new ideas every time
These people are
concerned with the
traditional way of
managing and
directing the company
keeping themselves at
high power
Risk These people are not fully
risk takers and tend to
avoid risky projects
however that tried to take
projects when there is a
level of low risks in the
projects
These people take a lot of
risks and they come up with
new ideas. they also like to
take risky activities and create
an opportunity to earn an
extensive amount of money
(Amelung et al. 2017)
These people take safe
and calculated risks
and most of the time
they avoid risk-taking
activities like risk
projects
Activity Direct involvement and
delegation of task
Direct involvement and
coming up with new ideas by
taking extensive risks
Delegates and
supervisors people and
is also concerned with
the direct involvement
and coming up with
new ideas
Failure and
mistakes
Hide risks Deals with mistakes Tries to avoid mistakes

Relationship
with others
Transaction with hierarchy Transaction Transaction with
hierarchy
Decision Follows dreams but also
agrees with other people
before coming up with the
idea
Follows dreams and carries on
decisions
Agrees with the board
or people of upper
management and takes
decisions
Operation Inside operations of the
company
Operates from both outside
and inside depending on
situations
Functional operations
The similarities between the above entrepreneurs are that all of these people are focused on
innovative thinking and they do everything for innovation. Their main target is to achieve
success and eradicate the failures; they focus on using different opportunities, technologies, and
methods to grow. These people are always learning and the continuously pick up new
information and skills. They are very much flexible in their approaches and they can work during
extensive workload and inflexible schedules (Bower 2017). They have a very good
understanding of the market and they do not give up easily, focusing on the success of the
company. They also focus on team building and prototype and like to gather funds so that their
ideas can be converted to reality.
Public and corporate sectors
The public sector consists of public services and public enterprises in which public services
include the governmental and public good services like law enforcement, electrical supply,
telecommunications, military, water supply, bridges, public transit, public education and even
healthcare. These kinds of services are provided to every people within a country and it is done
for the benefit of the society (Cardon et al. 2017). Public enterprises are owned by the state and
these are self-financing commercial enterprises that provide private goods and services for sale
as well as operate on a commercial basis under public ownership. The corporate sector on the

business sector is the part of the economy made up of companies and it is the subset of domestic
economy which excludes the activities of private households, the government and the non-profit
organizations (Carsrud et al. 2017).
Forms of public enterprises are:
Departmental Undertaking: These kinds of organisation are used for the benefits of the public
especially for the provision of essential services live broadcasting, postal services and railways.
These kinds of organisations operate under the control of the government or the ministry and
they are completely controlled and financed by the same organisations or by other different
departments of the government (Hong and Yue 2017). This kind of undertaking is generally
suitable when the government wants to take control so that they can focus on public interest and
benefits at all times.
Statutory Corporation: This kind of organisations is a statutory body created by a special act,
the parliament, or the state legislature, and they have been defined with the pattern of
management, functions and powers by them. These organisations are also known as public
corporations and are funded by the government only.
Government Company: This kind of organisation has 51% of paid-up capital by the
government and is registered under the Companies Act or is governed by the provisions of the
act. Most of the units of these kinds of organisations are managed and owned by the government.
Forms of corporate enterprises are:
Private Limited Company: In this type of organisations, the business assets are separated from
personal assets and the shareholders are only responsible for the share of the person’s total
capital. These types of companies have to maintain financial records, and the shares can be
transferred from one individual to another individual (Lindh 2017). A private limited company is
subdivided into a company limited by shares, a company limited by guarantee and unlimited
company.
Partnership: Partnership is another type of business entity in which two or more sole proprietors
carries on businesses altogether keeping the shares of the company limited to each one's capital.
A legal partnership agreement has to be created and the roles and responsibilities of the partners

have to be described in those agreements. In case of losses, the partners are responsible
personally and have to compensate from personal assets of the partners.
Limited Liability Partnership: It is a separate legal entity in which the personal assets are
separated from the business assets of the partners and whenever there is a loss, it does not put too
much of risk and liability on every partner and has to be defined by the share capital in the entity.
Sole proprietorship: Sole proprietorship consists of a single person who is responsible for every
business transaction and activities and the owner is not separated from the assets of the company.
This person is responsible for taking the profits; embrace the losses and carrying on with the
funding process of the business (Mauer et al. 2017). All the losses have to be made up by the
personal assets of the owner.
One-person company: It is a separate legal entity, which a single person carries it on, and the
company do not have employees or economic entity. There can be only one member in this type
of organisation and it is separated from its members, has continuity in business, and is easy to
incorporate.
Most of the organisations in the public sector have a large size and the development of these
organisations at generally very high. These kinds of companies do not focus on earning profit
from the people, rather they work for the benefits of the people, and therefore they are not profit
oriented. The growth of the companies can be stagnant and this type of companies may have
problems with introducing new products and services for the customers. These companies have
to maintain the pricing of the products and services, as they have to provide the services to the
people and for the public interest (Tietz and Parker 2017). As the government or other
departments of the government generally control these organisations, these organisations have an
extensive size and operations. On the contrary, corporate enterprises are much more focused on
earning profits from its operations, and therefore, it is likely that these organisations will grow
faster than the public organisations. Private Limited companies range from small-sized
companies to multinational companies and they focus on earning profit as much as possible,
helping them to grow in the market (Anglim and Grant 2016). Partnership companies are
generally of medium size and they always want to carry on business for smooth revenue earning.

Sole proprietorships and One-Person Companies generally have a small size and their revenue is
less compared to the other organisations.

LO2
This part of the study will focus on the impact of small business on the economy and will
illustrate how these companies have helped in the growth of the social economy.
Impact of micro and small businesses on the UK economy
Small and medium-sized businesses have been growing since the last decade and have been the
major option or an opportunity that has led the economy of the United Kingdom at its peak. The
productivity levels of the United Kingdom were lower than other European economics and were
very much behind the United States (Bernstein et al. 2016). The advent of the small and medium-
sized businesses after 2008 has increased the productivity of the country extensively and has
showed increased signs of revival. It was the key challenge for the Government of the country to
increase productivity and generate growth, however, the government had started to realise the
importance of small, micro, and medium-sized businesses in the economy of the United
Kingdom. These types of companies started to become a vital part of the economy, which
accounted for almost 47% of the revenue of the country and 60% of the private sector jobs
(Bosma et al. 2016).
According to the Enterprise Research Centre, it was found out that there has been an increase by
2.7 million small and medium-sized businesses in the market of the United Kingdom which has
become an underlying resource of the increased GDP of the country and the high level of
productivity that is influencing different other options for the government. The UK was lagging
behind the G8 competitors however, after the introduction of SME’s, the country has been able
to stimulate growth and focus on international expansion using innovative strategies. It has also
helped to improve the condition of the people in the United Kingdom and has reduced
unemployment to an extensive level (Byrne et al. 2016). The introduction of these companies has
been able to improvise a large part of the United Kingdom economy and have a significant
impact on the productivity of the organisations. The level of exports and international business
have also increased which has led to the growth of the nearby areas and has also acted as an
improvement in the exporting department, increasing almost 1.15 billion as annual gross value
added (Colombo et al. 2016). These companies have been able to innovate the products and

services, which have also helped to attract people from abroad and this type of organisations is
dominating the domestic market of the United Kingdom. There has been a 17% growth
aspiration in the United Kingdom as compared to 27% in the US.
Social economy
Social economic can be defined as a diversity of organisations and enterprises consisting of
different establishments like social enterprises, foundations, cooperatives, associations, mutuals
and other institutions which focus on sharing the common values (Davis et al. 2016). These
kinds of organisations are focused on the primacy of the individual, social objectives, voluntary
and open memberships, democratic governance, defence, application of the principles of
responsibility and solidarity, combination of general interest, autonomous managements, and
independence of public authorities and sustainable development of the areas.
Importance of start-ups and SME’s to social economy
The micros, small and medium-sized organisations happen to contribute significantly to the
development and the welfare of the societies, and allow extensive growth of the community.
These organisations have provided with positive effects on the society, which have again resulted
in philanthropic outcomes helping to advance the working conditions and the living standards of
the people in the society (Holmberg-Wright and Hribar 2016). One of the major importances has
been that these companies have provided the local people with employment and helped the social
economy to be much better than before. 45% of the people working in the greatest cities of the
United Kingdom have been employed in one of this kind of organisation and these organisations
are contributing extensively to the growth and GDP of the country (Ibrahim and Mas’ud 2016).
The increased employment has also solved several social problems like social unrest and has
affected positively to the living standards of the people. The less privileged people are now able
to work and earn and therefore, the government has been able to deal with the social problems
like unemployment and social unrest (Kusmintarti et al. 2016). The government has also been
able to focus on other problems like hygiene and education, and this type of companies have
been spreading awareness on different factors like proper education, hygiene and safety of the
environment. These organisations are also careful that their operations do not hamper the
environment, and therefore, they introduced green technology and energy to operate and use