A Report on Entrepreneurship and Small Business Management Principles

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and exploring various entrepreneurial ventures, categorizing them based on their characteristics and relation to the typology of entrepreneurship, including independent main street businesses, lifestyle businesses, social good organizations, established large businesses, and high-growth companies. The report then compares and contrasts these ventures, highlighting their similarities and differences, and discusses the impact of micro and small businesses on the economy, emphasizing their role in job creation, GDP contribution, and local market service. Furthermore, the report examines the importance of small businesses and business start-ups for social economic growth, citing their contributions to innovation, job employment, and economic resilience. The second part of the report shifts to the characteristics of a successful entrepreneur, highlighting key traits such as passion, risk-taking, self-belief, and hard work, along with examples of successful entrepreneurs and their skills. The report also assesses how aspects of an entrepreneur's personality reflect their motivation and mindset, while acknowledging the potential hindrances posed by an individual's background and past experiences. Finally, the report concludes with a summary of the findings and insights on entrepreneurship and small business management.

Entrepreneurship and small
Business management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Various entrepreneurial ventures and the way they relate with the typology of
entrepreneurship..........................................................................................................................3
1.2 Similarities and dissimilarities among entrepreneurial ventures..........................................5
1.3 Impact of micro and small businesses on economy..............................................................5
1.4 Importance of small businesses and business start –up on the growth of social economy.6
TASK 2............................................................................................................................................7
2.1 Explain being successful entrepreneur with examples of successful
entrepreneurs and determine the characteristic traits and skills they possess............................7
2.2 Asses the aspects of entrepreneur personality reflect the entrepreneurial motivation and
mindset........................................................................................................................................9
2.3 Person’s background and past experiences making hindrance in entrepreneurship .......10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurs are those who develop, organize, create, design and manages new business
by taking opportunities and risks which are not accessed by others. The performance of the
organization depends on the entrepreneur decision as they have to take risk and monitor the
business activities. Entrepreneurship is beneficial for country as its helps in contributing the
country economic growth and development. In the following report, readers will be able gain
knowledge about different entrepreneur ventures and their scope. Moreover, decision related to
the importance and contribution of small business in country's economy and its impact. Further,
various factors are described which create influence an entrepreneur to start new business
(Storey and Greene, 2010). At last, relevant examples, how a person’s background and past
experiences affects the entrepreneurship. Risk along with rewards required for the starting of the
new business development which will showcase about the entrepreneur and enterprise.
Entrepreneur have different abilities, vision and potential to develop new business.
TASK 1
1.1 Various entrepreneurial ventures and the way they relate with the typology of
entrepreneurship
Entrepreneurship is the process of identifying, creating and organizing new business by
significantly devoting efforts and time (Morris, Kuratko, and Covin, 2010). They have to
identify and acknowledge various financial social and psychological risks through which they
can finally receive rewards of their satisfaction. There are various entrepreneurial ventures
which can be classified and can be related to the topology of the entrepreneurship:
 Independent Main street Business
1. Small business Ventures : Its an independently owned and operated business for the profit
motives in which enterprise don't dominant it's field. Their aim is to develop into long term
business which makes profit as well as have sustainable development. Mostly restaurants,
grocery store, retail stores, travel agents, agriculture and construction are involved in this
venture. Capital is provided by the family, friends, banks or loans. General outcomes of this
venture is payroll taxes and jobs, necessary services which are required for the country's
infrastructure development.

2. Lifestyle Business: This includes the Freelancers and Microenterprise. Here main motive of
entrepreneur skills, passion and strength towards achieving the target. They have long term,
residual income through their own business which involves their passion and expertise. Its a
self employed and small operated business operation (Welter, 2011). They are generate
income to their founders.
 Social Good Organization: This are the business which innovates new technology and
solutions to make world a better place. The main motive is focusing more on sustainable
development. Business related to this ventures are related to the health issue or specific
new development. As the term suggest this is non profit organisation. Capital provided to
the organisation depends on the size and type of the company. Outcomes to this venture
is social impact and improved life of society.
 Established large Business: Business having more than 500 people. The generate high
revenue and profit for the organization and its shareholder. As this are the big firms so
generally includes the cooperation business. Some e.g. of this ventures are General
Electric, AT&T etc. For this firms the capital is provided by the subsidiaries, revenue and
tax credits. This firms generate employment, brand, reputation and contributes to
company economy.
 High Growth companies are those which creates most jobs and opportunities. Here
intervention, time and focus can make great impact. There are two sub categories of it:
1. Scalable Start-up: This are focused innovative firms which have the potential to develop new
market. Through their new technologies and innovative products and services they create
new market (Herrington and et.al., 2010). Main motive of the firm is to make profit for the
founder and shareholder. Mostly companies like medicine developer, IT companies involved
in developing software and apps for the B2B. They create jobs, revenue and improves the
country growth by contributing to economy. Capital is provided by the large venture,
inverters, government, family and friends.
2. Second Stage company (Gazelles): These are independently operated and owned enterprise
which develop their own field. The main aim of firm is generate revenue, profit and strategic
business expansion for the company. This firms are well established and generate revenue in
millions and achieve growth for about 20% every four years. Capital for business start up is

given by banks and CDFI. Main outcomes of the organization is generating significant
revenue, economy and employment.
1.2 Similarities and dissimilarities among entrepreneurial ventures
Entrepreneurial Ventures differ in various aspects such as revenue collection, number of
employees, degree, new innovation and many more. While they similarities among the
innovation and the focus of the entrepreneur to develop the business. They are highly motivated
and mostly engaged in innovating new technologies.
Similarities:
Role of every business entrepreneurial ventures is to make employment, earn profit. The main
objective of the every venture is to generate revenue and create employment, innovating new
things and products. They identify new ideas, process and methods to create change in the
business firm. Entrepreneur have to remain highly motivated and talented in order to make the
profit and market values (Kirzner, 2015). They identify the new aspect where other are not able
to make investment. All the organization are ready to adopt changes for earning profit according
to the market. Sometimes they may even have to face loss due to market condition.
Dissimilarities:
Independent Main Street Business don't have business expansion and there is no employment
provided by them. The profit earn by these firms are kept by themselves. This organization are
either funded by family, friends and Banks and are mainly required for the infrastructural
development. It's owned by either single person or family and friends. Social Good
Organization, Established large Business and High Growth companies are those organization
having large output in there products. They earn more profits are profit is shared among there
shareholder and founder of the organization. They create large employment and contribute to the
economic of the country. The identify new innovation and technology which helps in
contributing to the company. Company also generate revenue and make profit in millions
( Drucker, 2014).
1.3 Impact of micro and small businesses on economy
Micro-Enterprises are those having 1-5 employees, having assets of $250000and sales up
to $250000 whereas small enterprises have 6-25 employees and assets over $250000 -1500000

and sales over 250000-500000 including real-estate business. Both are owner-managed. They
create significant contribution on the country economy. First they provide the Job opportunities
in many segments. Mostly in the manufacturing and retail sectors. They provide high
employment practises, have high worker productivity and contribute in unemployment reduction.
Secondly they contribute to the GDP of the country (George and Bock, 2011). It was estimated
that in UK maximum contribution to the GDP was due to SME. Also this help to generate the
revenue and adds value to the country. Due to increase in income generation due to wages and
salaries of employee/workers the overall GDP and per capita income of the country increases.
Small business plays key role in servicing the market at local levels. Also, they provide the
goods and services which are necessary by the large firms. SBE share contribution to the country
in manufacturing GDP
As we all know Entrepreneur provide business opportunities. Small business
widely introduces new product and services. Sectors like food processing and drinking, their
assemble and related sub industries are more involved in small business. Also sectors like
construction, distribution, transportation, communication, storage, publishing, textiles, Hotels
and restaurants, Educational, cultural, Finance and real state, assemble and Miscellaneous
manufacturing have main percentage distribution in small firms.
They reduce the chances of inflation. Small business increase the prices but doesn't
causes the sharp price increases. They provide great support and flexibility in maintaining the
inflation down. Small business contribution is expanded to the international levels. Sometimes
small business have to purchase the products from the other country which increases their
employment also. It also make people to identify the new aspects of earning (Oosterbeek, Van
Praag, and Ijsselstein, 2010).
Contributing to the GDP and reduction in unemployment helps the country growth. They
identify the new sources and methods to sell the goods and services.
1.4 Importance of small businesses and business start –up on the growth of social economy
Small business and business start-ups are the becoming the backbone of the country
economy and contribute to the country in many ways. For example in UK, Confederation of
British Industry (CBI) published figures which revealed that SME make 99.9 % of private sector
business and 60% private sector business. Around 4.9 million business are operated by the SME
in UK.

Small business and business star-ups have contributes in the economy and is estimated
that there is possibilities of having more investment by them (Bruton, Ahlstrom, and Li, 2010).
Small businesses contribute to local economies by bringing innovation and growth to the
Country in which the business is established. They have largely contributed in providing the job
employment to billions of people worldwide. They introduce the new market and contribute to
the company growth. Due to Small business and business start-ups there is competitive and
attraction of many visitors and investors. This increase the country relationship and increase the
new scope of employment in other countries. Some people also follow the small business
established in some other countries to their own countries. The market turnover increases and
there in increase in import and export of the services. Start-ups in starting have less employ but
after the success of the start-ups they too contribute in the country economic and growth. This
also increases the job employability of that area.
It also reduces the chances to migration of people from one place to another in search of
business opportunities. SME contribute largely in the GDP, per capita income and other
economic terms. Small business are more adoptable to the to the changing climates. They have
more ability to withstand the market changing. This further increases and strengthen the local
business. Some small business don't remain small. Due to modernization and business expansion
small business like Nike which can from small business becomes the national and international
brands (Baum, Frese, and Baron, 2014).
TASK 2
2.1 Explain being successful entrepreneur with examples of successful
entrepreneurs and determine the characteristic traits and skills they possess.
The theory “ one size, fits all” is not made in terms of being an entrepreneur. They are
not created to have the same blueprints. Being from different location, place, class, country and
education level they become entrepreneur due to there skills and traits. Due to their ideas and
focus they are able to be successful entrepreneur. These are the following traits which are mainly
found in successful entrepreneur:
 It all starts with the passion and motivation. This are the fundamental traits of successful
entrepreneur. It drives and makes determinant to achieve the desired destination. Lacking
in being passionate will bring stress and more problems to the entrepreneur.

 The person should have the ability to take risks and should be able to face the future
issues and problems. There is mainly risk related to the time and money. There is nothing
like failure, you always learn from your mistakes so feel comfortable and make a new
start with new ideas (Kuratko, 2016)
 For being the successful entrepreneur Self-belief, Hard work & Disciplined Dedication
towards the work should be there. They should believe in themselves and should be
dedicated and confident to their work. They must have faith in there work and ideas.
 For being successful entrepreneur you need to be passionate and stubborn. But there is
need to be flexible towards the clients and market. They must be able to adopt the
business up downs. They need to adopt the suggestion for customization and optimization
that enhances their offering and satisfy clients and market needs.
 Entrepreneur must know that product and offering inside and out. They should be aware
about the market needs and competitor movement and various other factors which can
lead the decrement in the market rate of the product.
 Finance and money related management is required for being the successful entrepreneur.
Money should never be the main motive for starting any business but it is required for
other purpose. There is limitation in the capital and should be utilized effectively. They
should be able make the money management for the current and future requirement. They
keep the records where they have made the investment (Defourny, and Nyssens, 2010).
 Planning in terms of launching the products, money investment and long term benefits of
the business is required. For being the successful entrepreneur there is need to make plans
related to such things. Even if the business fails they have there plans which helps them
to overcome the losses.
 They must be able to make networks with different stakeholder and great business man as
during the tough time entrepreneur may need help. Networking is also required by the
entrepreneur as they visit the other successful entrepreneur and learn from there mistakes
and their success.

 They must be highly adoptable to the business environment. If due to some
circumstances if the entrepreneur gets loss then their must be exit plan which can help
then to escape from there losses and start new business.
 Ability to sell and promote their own product. For selling the product an entrepreneur
must be able to have good communication and should be able to promote and sell his
product in the market (Dacin, Dacin, and Matear,2010).
For example Elon Musk, CEO and CTO of Space X; Co-founder ,CEO and product architect of
Tesla, Inc. is a South African-born Canadian-American. He is mostly admired for his visible
entrepreneur. The entrepreneur skills in Elon Musk for being successful entrepreneur are
passion, imagination and self motivation. He read lot of books from his childhood and remained
connected to his ideas. Persistence in aiming for his goals. It took a decade for Tesla to make its
own domain Tesla.com. At last comes the commitment towards his work. He is able to achieve
through his dedication and focus whatever new operation they are getting involved.
2.2 Asses the aspects of entrepreneur personality reflect the entrepreneurial motivation and
mindset
The above mentioned successful entrepreneur have the personality traits like Passionate,
imagination, self-motivation, persistence, commitment, learning skills and advance planning
about there work ( Bridgeand O'Neill., 2012). Hence the motivation and mindset of the
successful entrepreneur about there skills, characteristic and traits are given below:
 Effectively and efficiently building the relation inside and outside the company: Building
effective relationship with in the competitive spirit is required with customer , clients,
suppliers, dealers and government. For this great communication skills are required. This
gives the opportunities to overcome the weakness of the entrepreneur.
 The entrepreneur must have this personalities threats in terms of its motivation are
Extraversion, Agreeableness, Conscientiousness, Emotional Stability and Openness to
experience
 Incorporation of motivational factors is a prerequisite in order to fully capture the
entrepreneurial mindset.
 An entrepreneur must have the ability to make difficulty decision and must accepts the
challenges during their tough time. They must be able to handle customer, clients and

other business related person. They should remain self-motivated and inspired and
through their mindset they must be able to solve the problems (Djankov and et.al., 2010).
 The successful entrepreneurial have an ability to take challenges, there mindset should
motivate them to achieve success. They must have the mind set which are able to face the
difficult situation in the crises and should be able to compete with competitors.
 Successful entrepreneur must have high level of understand in organisation and belief in
themselves. They start try to value others views, opinions and also value themselves that
makes them a high level of success.
2.3 Person’s background and past experiences making hindrance in entrepreneurship
Past experience creates problem to many entrepreneur as they have difficulty or may
have problems in their business start-ups (Delgado., Porter, and Stern, 2010). But successful
entrepreneur must be able to focus effectively and efficiently on the goals and must have abilities
and mindset to overcome those failures. They must not count it as failures, they should count it
as inappropriate ways of approaches. For illustration, Steve Jobs founder of Apple Inc. is an
impressive entrepreneur. He has found and developed boundless innovations which made the
Apple most chosen brand. But he holds an emphatic comeback from an almost irrecoverable
failure. Jobs got success in his 20's due to his innovation and development of Apple mobile,
laptops, iPods and various other invention and became a massive empire. but unfortunately at
30, Apple’s board of directors decided to fire him (Neck, and Greene,2011).
Jobs founded a new company, NeXT, which was eventually acquired by Apple. Once back at
Apple, Jobs proved his capacity for greatness by reinventing the company’s image and taking the
Apple brand to new heights. Hence, it has been concluded that background and experience
definitely affects the performance of the enterprise but there in positive ways. Successful
Entrepreneur should be able to face such situation and must have mindset to overcome those
experience. Self motivation and proper planning is helpful in getting out of such situation.
CONCLUSION
The report concludes various types of the entrepreneurial ventures and there similarities
along with there dissimilarities. In the whole report discussion about the small entrepreneur and
business start-ups are being described. It can be concluded that various new technologies and
ideas are required for the start up of new business. The process require great planning and
strategies. Further, there is discussion about the contribution of small business in the country

economic growth and in increasing the employment ratio. Then the traits, characteristic and
skills of successful entrepreneur are elaborated and illustration about Elon Musk and their
entrepreneur traits are mentioned. Moreover entrepreneurial motivation and mindset required by
entrepreneur for expansion of business is described and at last examination about the person’s
background and past experiences which hinder or
foster entrepreneurship. Entrepreneur is the actor who finds the innovative product and ideas
and focus on his business prospects.

REFERENCES
Books and Journals
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