Entrepreneurship and Small Business: Types, Impact and Comparison

This report delves into the multifaceted world of entrepreneurship and small business management. It begins by defining entrepreneurship and its significance, particularly within the UK economy, highlighting the role of organizations like the Federation of Small Business. The report explores various types of entrepreneurial ventures, including scalable startups, large company ventures, small businesses, and social enterprises, detailing their characteristics and objectives. It also provides a typology of entrepreneurship, categorizing ventures based on factors such as psychological, sociological, and economic aspects. Furthermore, the report compares and contrasts different types of ventures, such as small and social entrepreneurial ventures, large and scalable entrepreneurs, lifestyle and serial ventures, and female and male entrepreneurial approaches. Finally, the report examines the impact of micro and small businesses on a country's economy, discussing different ownership structures like sole proprietorships, partnerships, and limited companies, and classifying businesses based on their scope, including local, national, and global enterprises. The report emphasizes the crucial role these businesses play in job creation and economic development.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1 Entrepreneurial ventures and typology..................................................................................1
P2 Similarities and differences between ventures.......................................................................4
P3: Impact of micro and small business on economy of a country.............................................5
P4 Importance that small businesses and business start-ups in growth of social economy........7
PART 2 ...........................................................................................................................................8
P5 Successful entrepreneur.........................................................................................................8
P6 Way in which several elements affects entrepreneurial behaviour........................................9
P7 Impact of Person’s background and past experiences on entrepreneurship........................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
“An entrepreneur is a risk taker, innovator and someone who desire to bring a change.”
Hence, entrepreneurship is business which is established by a single individual with a new idea
to earn profit and maximise it. In the economy of UK this section contributes a major part so that
there is growth and development. Federation of Small Business is contributing to boost the
performance of these enterprise so that they can work efficiently. FSB is planning for analysation
of all elements which are associated with entrepreneurial business so that there can be an
information about them for further development. This report consists of all details related to
entrepreneurial actions who are on there developing stage. This document is a complete
justification for all factors and elements which are related to entrepreneurship. Leaders who are
recognised globally have also been stated in this assignment.
PART 1
P1 Entrepreneurial ventures and typology
An Entrepreneur is a person who form a business and run it with every possibility of risk,
success, and failures. Despite of risk of failure in their business venture, entrepreneur embrace
it,and lesson from experiences (Agarwal, Audretsch and Sarkar, 2010). Entrepreneur planning
new strategies and innovation with limited resources and capital in order to get result knowing
success and failure probability.
Types of Entrepreneurship-
 Scalable start up entrepreneurship-
Silicon valley Investors and their venture stockholder do start up entrepreneurship.
Different from small business, These entrepreneur begin their ventures believing that their
concept can bring change in world. They attract sponsor aiming those who are as crazy in
investing in their idea as them- Venture Investors. These entrepreneur recruit worthy and
brightest employees. Repeatable and ascendable business model is are they pursuit. When they
meet their pursuit, their eye on scale needs equally more venture assets to supply rapid increase.
 Large company entrepreneurship-
Large business have a lot of resource e to live in industry. Mostly their innovation and
new services help in developing company which are innovative version of core product.
Customer will change, new technical change,new policies and competitors can create pressure
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for more riotous creation- large company need to innovate totally new product to boost sale4s in
the market. Thus large company reacts such disruptive products which is difficult to implement.
 Small Business Entrepreneurship-
Recently it has been noticed that Small business entrepreneurship has become flavour of
entrepreneurs. Small Business Entrepreneurship include business plan to a determined areas with
definite products and specific target audiences. Such business includes saloons, grocery stores,
consultant, travel agent, Electrician, plumber, carpenter, internet commerce store fronts etc. Only
few individuals runs such businesses and such employers recruit local persons as their workers.
Such sort of business are started just to earn living and make some savings out of it (Barringer,
2012). These entrepreneurs funds their business with loans from family, friends, or banks, as
they can not find sponsor and advertise their stores.
 Social Entrepreneur-
Social entrepreneur focuses upon social issues and problems and their solution by
providing help with their business and innovative ideas and products. Social entrepreneurs don't
focus on profit unlike scalable business entrepreneurs, despite their goals are t make society and
world a better places and survivable. They may earn profit and no profit.
Typology of Entrepreneurship-
A categorization of entrepreneurship according different factors and types such as
psychological typology, Sociological, economical etc.
 Social Entrepreneurial venture-
Social Entrepreneurs Ventures refers to entrepreneurship which are founded or started in
order to solve social problems, cultural and environmental issues by developing their start-up and
funding capitals from them. Such ventures includes health, education, Enterprise development,
environment improvement. These ventures can be business and non- profit organisation. There is
few profit possibility from such business.
 Serial Entrepreneur-
A serial entrepreneur is an entrepreneur who often come up with new concept an
strategies to start a new business. Such entrepreneur come with ideas and play a vital role in
everyday activities of company (Bosma and Levie, 2010). Serial Entrepreneur usually are
profitable for business offering new concepts and ideas and always aware of activities which is
taking place.
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 Social entrepreneurs-
Social Entrepreneurs starts a business with planning and collecting funds in order to serve
society and company. These entrepreneur specially work toward community well fare and profit.
Social entrepreneur's main motive is not earning margin but serving and helping to society
issues, environment problem.
 Female Entrepreneur-
Female entrepreneurs is an female individual who applies female belief and conceptualise
in order to welfare of female and girls and developing stranded of living Female entrepreneurs
are starting enterprises expecting to earn money, and bring social change based on equality,
justice and respect.
 Accomplished entrepreneurs-
Accomplished entrepreneur are those entrepreneur who seek struggle and another
mountain to climb (Fejerskov, 2015). These entrepreneurs have achieved success in industry or
developing furiously in their sectors.
 Determined entrepreneur-
Some entrepreneurs are so ambitious and determined for there objective and vision.
Determined entrepreneur never loss hope and keep trying even after failure of business strategy
with a volume of new business strategies. These entrepreneurs consider their journey ventures
and aware of risk and threats.
 Sceptical Entrepreneur-
These types of entrepreneur a Fabians about new modification to take in company.
Invention is not their cup of tea, but they will be satisfied if that invention get success. Such
entrepreneur are concern about implementation of new innovation and will never test first until it
get success to avoid loss.
 Research Entrepreneur-
Research entrepreneur believes in studying and reviewing market strategies, environment
and essentials before starting up a business . They are very concern about information and right
implementation of strategies.
P2 Similarities and differences between ventures
There are many venture upon which entrepreneurship can be done which have been
stated below with a comparison and difference in each one of them:
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Types of Ventures Similarities Differences
Small and social
entrepreneurial
1 Both use innovative strategies
and concepts to reach specific
needs.
2. Both target to public one to
serve and another to sell.
1.Social entrepreneurial
emphasise upon society and
their working team whereas
Small business often form to
earn profit for individual needs
and requirements
2. social Entrepreneur's main
motive is serving society
whereas small business serve
himself for survival.
3. Social Entrepreneur don't
focus upon profit but small
business main motive is earn
profit.
Large and scalable
entrepreneurs
1. Both entrepreneur aims to
earn margin in a large amount.
2. Both vision is bring change
in exciting system (Drucker,
2014).
2. both recruit best, hard
working and bright employees
with a great potential.
1. Large entrepreneurial profit
and loss can be infinite whereas
scalable entrepreneurial profit
and loss is determined and
measured.
2. Large entrepreneur look for
sponsor in order to spread
business and scalable focus on
Venture investors who can go
far with their crazy concept.
Lifestyle venture and serial
entrepreneurial ventures
1. Serial and Lifestyle venture
entrepreneurs have same vision;
selling services to multiple
level.
1. Serial entrepreneur focus on
build several option in their
career whereas lifestyle
entrepreneur don't work with
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2. Serial and Lifestyle are
believes in creative and new
strategies and ideas.
small business.
2. Lifestyle entrepreneur offers
a better lifestyle and comfort
whereas Serial entrepreneur
focus on new concept and entire
role in business.
Female and male
Entrepreneurial
1.Demonstration even level of
knowledge.
2.Both deal with time and hard
work to get success.
3. Equal risk of success and
failure in industry.
1.Female are lore likely to
scarifies their times and needs
whereas men likely to scarifies
time with spouse.
2.Women are more focus
toward their work whereas men
are focused toward earning
profit.
3. Women entrepreneurs are
more innovative and creative
then male entrepreneurs.
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P3: Impact of micro and small business on economy of a country
A nation's economy consists of various firms which together contributes to its
development. These firms are classified as micro, small and medium enterprise. These
organisations works for development and growth of economy as well as there own business. The
size of organisation justifies that what kind scope it possess. There are many new innovation
come up which starts from a small entrepreneurship with an aim to be large (Finkle, 2017).
These are very important factor in a economy of a country so as to have employment for people.
United Kingdom's economy consists of many micro and small enterprise which are rising rapidly
at a path of development and growth.
The justification of enterprise can be done on the basis of ownership which justifies it
size and people who are involved in it. Various enterprise performs their function in various
ways and these are classified as follows:
 Sole proprietorship
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Source 1: Impact of small scale business enterprise

In this type of ownership the business is wholly owned by a single person and that single
person runs it. There is no other member who is involved in doing the business in this type of
entrepreneurship. All the risks and other factor of business are borne by individual who is owner
and the profit also belongs to that only one single person from activities of business. Partnership
When there are many people involved in a single business than there is a formation of
partnership. This type of business relates to formation of a big business by involving similar
interest of some individuals (Fisher, 2012). The risk and profit is borne by all the member who
are there in partnership. It reduces the risk but a huge investment is there in this business. Limited company
There are organizations which exist in market who classified as private or public and do
not trade on stock exchange. They are certified under company's act and operates according to
the rules of it.
Small business comprises of 50 worker and income is earned less than 5.6 million euro.
Medium business formulated when number of employees are 50-250 and receipts are greater
than 5.6 million euro and less that 22.8 million euros.
There is one more way on the basis of size in which the companies can be justified and
they are below:
 Local
The scope of some small enterprise is limited to local area where they have been
established this specifies that they have been developed newly and seek to increase there size of
area.
 National
Enterprises which operates across domestic country in various states and localities are
categorised under this. They are small size firm who aims at developing and edge over
competitors in their native nation.
 Global
The companies which operates beyond the boundaries of a nation are global or
international enterprise (Hall, Daneke and Lenox, 2010). They have well established business
with a very high profit earning capacity as they operates in various parts of globe.
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Hence, small and medium sized enterprises are restricted in size and scope but all of them
aims at earning maximum profit. They operate hard in order to develop there business and
expand in to become medium and large enterprise. These are the firms which contributes to UK's
economy by generating revenue as well as employment for people which is a very significant
role. There is generation of creativity and innovation as they leads to development of new ideas.
At the same time, it creates new possibilities for people of United Kingdom to excel their
personal knowledge by running their own enterprise (Harman, 2016). Also there is a generation
of cash flow which makes the country financially strong. The government of country also
support these firms so that there could be a chance for them as well. There are requirement of
resources but in return the new idea will generate revenue for the company to cover cost.
P4 Importance that small businesses and business start-ups in growth of social economy
A business develops in the beginning from a small enterprise sooner or later it grows by
undertaking success. Hence, start of any kind of business might be small but it aims at becoming
best in its sector. In UK there are several changes related to economy and functions of business
which are due to political changes in country's nation. Out of which Brexit is the major change
which have left many challenges for the nation. As there are some privileges which are provided
to a member of EU which are withdrawn as the member exit. At the same time, there was a need
for business development as well as employment generation which lead to formation of may
small and medium enterprises. Establishment of various firms lead to reduce the number of
people who are unemployed. Start ups are very trending nowadays which gives rise to new ideas
and development of new innovations. The value which have been there of small business and
start ups in growing of economy have been stated beneath:
 Acting flexibly to problems and challenges
Brexit is the major challenge for a company due to which there is formation of many
small and medium enterprise (Herrington and et. al., 2010). This states that these firms supports
in meeting the changing as well as challenging needs which are there in its operations.
 Invent and initiate
There is a creation of ideas which are there in mind of people which is a very best kind of
development of mindset which are intellectual and can take the nation far beyond in innovation
and creation.
 Low expenditure
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This is the major efficiency of small business as they includes very low cost while they
are established. Hence, it is very economical to make them so as to earn profit. The margin of
profit is also high as it is owned by a single person who have this advantage. Targeting niches market
Niche market are area where a company launches product according to needs and wants
of the customers in it. A proper assessment is done for the market in order to compel with
various needs on a small scale business which can help the company to penetrate in market so
that it can develop further.
 Development of personal relationships
Personal involvement of the owner is there in small enterprise while interacting with
customers which helps in building an image of them in front of people. This improves
relationships with customers and helps in retaining them for a longer period of time.
PART 2
P5 Successful entrepreneur
Success is a result of continuous practice in a particular field and over a period of
continuous hard work it is achieved. Entrepreneurial success relates to attainment of a desired
position which a person aim through its business and its operations. The list of people who have
achieved success have been very large but all of them varies in terms of tact, personality and
their way of doing a particular task. Sometimes a person gain knowledge of business by
practising under someone else so that it have an idea to formulate its own enterprise. In some
cases creativity is god gifted and in built which leads to formation of business. There are many
big business tycoons who have established there business venture from a long period ofhard
work which resulted in success. To start a business it is necessary to operate a small enterprise
than this sooner or later leads to growth and development (Hockerts and Wüstenhagen, 2010).
For example- Bill Gates and Warren Buffet are two very renown and successful businessmen
who was at The Business Show 2017 held in London Excel Centre. Attribute and acquirement of
these two famous personalities are given below:
 Grounded
Both of them are very grounded people with an urge to develop and guide everyone in
order to reach success. When they were present in conference at that time also they were so
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much humble and full of gratitude in order to solve questions which were asked by people. The
one who have everything but still do not show it are one of a kind people in the whole universe
and are very difficult to find. They are legends of the century who have great imagination to
develop the country in a better way.
 Leaders
Leader is a person who guide and motivate others in order to achieve the goals and
objectives of a company. Similarly, in case of Gates and Buffet it is clear that they are the best
leader in the world who have most successful business organisation with a huge profit margin.
Hence, it is clear that they lead and guide there employees and other people in a best way so as to
achieve the goals and objectives which are set.
 Passionate
The two businessmen are very keen and very much passionate about their business
dreams from starting (Jones, Coviello and Tang, 2011). There were many times when their idea
got failed after that also they were very much inclined to achieve the targets which they wanted.
Gates and Buffet are most famous ideals for business success and passion for achieving the
dreams of a person.
 Motivated
Gates and Buffet are self motivated leader who are known for leading a huge number of
people who are working in there organisation. They also have many followers other than there
employees who wish to become like them in there future. In the conference also they were
having a personality which was self motivated and self driven that even after so many
consequences they ought to have a positive behaviour.
P6 Way in which several elements affects entrepreneurial behaviour
Personality of a person reflects everything about it, it is the first impression of a person
upon other people whom it come across. Hence, in knowing a person personality is one such
factor which reveals a lot about it (Kahan, 2012). Development of personality of a person
constitutes of various elements which in return develops traits of a person. Therefore some of
them in relation with Bill Gates and Warren Buffet are listed below:
 Family upbringing
A person is directly associated with its family as it spends its most of the time with it
which states that surroundings are related to engrave personality and trait of individual.
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Likewise, in case of Gates and Buffet there family and surroundings plays a major role in
motivating them to be successful people. As background of a person is directly associated with
the manner it behaves.
 Lifestyle
The way a people live depicts about its needs and wants for which it will work so as to
fulfil them. Buffet and Gates are two personalities who come from various backgrounds and
lives but both are very keen to have development as businessmen in this world (Kirzner, 2015).
They have faced many challenges but there lifestyle and there needs urged them to perform well
and so they did.
 Cultural differences
Beliefs, religion, caste etc. are some factors on which people works and they plays a
major role in success. A person who follow the values of its culture will not do something which
is against it. Hence, this also impact in personality improvisation of a business so as to develop a
business which is leading in market.
 Personal motivation
Self motivation is the most important key for success in a life of a person this signifies
that the person must have will power which is very strong and firm to achieve goals and
objectives. Gates and Buffet never gave up no matter they faced losses which signifies that they
are very much self motivated people.
OCEAN is a key word which comprises of some abbreviation which defines the mindset
of a person and it is listed below:
 Openness
Some people have a nature of openness and very welcoming who ought to learn more and
more and are very curious about things (Popescu, 2010). This specifies that mindset of a person
is broad and very much flexible in order to accept changes which may occur.
 Conscientiousness
Discipline and dependability of person defines how much inclined it is toeards work
which is a trait of a person to have an idea about its mind.
 Extraversion
People who like to talk and get socialised with a bit quality of an extrovert are
categorised under this category.
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 Agreeableness
They are most cooperative and negotiating people who adjusts in whichever scenario
possible. They are the one who are humble and very listening to others according to which they
responds.
 Neuroticism
Some people lack in emotional stability which results as a problem for them in end those
kind of individuals are listed under this category.
P7 Impact of Person’s background and past experiences on entrepreneurship
Learning is for lifetime, a person learns from the beginning of its life till the time it ends.
There are many experiences which constitutes and develops a person who is a result of all the
happenings in its lifetime (Schaltegger and Wagner, 2011). Hence, there is a major role of
background of a person in developing it. Likewise, an individual is influenced by its
surroundings and the culture in where it is residing and spending its most of the time. A brief
illustration to such factors have been listed below: Education
There is a huge impact of education of a person on its personality. As the knowledge
which it possess have a great impact on its talking and mental ability. Simultaneously, when
there is a MBA student it will think in its own way in regards to its knowledge and an IT student
will think in its qualification relation. So, there is a huge impact of it in formation of a
personality of a person. Like- Buffet have been a student of economics and he is the world's best
economist which depicts the educational impact on its mindset. National culture
Country have a major impact on a persons development which states that its thinking and
mindset is developed in that way only. So, there is a major role of national culture in which a
person resides. Hence, the culture of a nation whether it is traditional, western or modern that
impacts the mindset of a person (Von Graevenitz, Harhoff and Weber, 2010). In regards to this
an example could be the clothes which people of country wear, the way in which they greet each
other.
 Economic circumstances
Economy of a country decides career of a person as it depicts whether the country have
possibilities of generating employment or not. This is a major factor which helps a people to
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develop mentally and supports in increasing intellect by actually struggling in search of good
income for potential it possess. Changes in economy of UK directly impacts the business of the
nation for example- after Brexit there are many changes which have incurred in nation and have
given rise to many small firms as there was a need to seek employment so as to earn a livelihood.
 Character traits
There are many roles a person plays in its family or in its work life, it can be a male or a
female. This defines the way of reaction or the way of solution a person might give for a
particular task or any kind of problem (Welter, 2011). Hence, a women will think a little softer
than men and men would take more risk in regards to women in case of entrepreneurship. But
there is a major changes which have given rise to many woman leaders who are better than man
which states that the differences in gender are diminishing and will decline in the coming time.
Hence, it is clear by the above statement that background of a person from which it is
associated plays a major role in building mindset of a person (Zelinsky, 2014). The jointly brings
out a person who states about what background it belongs.
CONCLUSION
It have been concluded by the above research that there is a major contribution of
entrepreneurial business in economy of UK. Small and micro size business contributes in a large
number to the economy of country which specifies that they are very essential for it. There is
major impact of personality and traits of a person on business it is operating. Also there is a huge
invention when people come up with new businesses in United Kingdom. Several elements
which have an impact on business of a enterprise have also been a result of this document.
Conference of The Business Show 2017 where Bill Gates and Warren Buffet have came in it so a
justification to there behavioural traits have been considered in this assignment.
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