Higher National Diploma Entrepreneurship and Small Business Report

This report delves into the multifaceted world of entrepreneurship and small business management. It begins by examining various types of entrepreneurial ventures, differentiating between small businesses, large companies, and scalable start-ups, and exploring how they relate to the typology of e...Read More

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship......................................................................................................3
P2 Explore the similarities and differences between entrepreneurial ventures...........................4
TASK 2............................................................................................................................................6
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy...............................................................................................................6
P4 Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................7
TASK 3............................................................................................................................................8
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers............................................................................................8
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set................................................................................................................................9
TASK 4..........................................................................................................................................10
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is a desire to start a new business. Basically it refers to the process of
developing and managing a business by taking various risks in corporate world for gaining
profit. It can be said that entrepreneurship is a process of taking move towards a new business
idea. It plays an important role in global economic market. And the businesses owned by
corporations, partnerships or sole proprietorship having small number of employees and less
annual revenue is known as small businesses. These businesses can be identified on the basis of
sales, assets, annual revenue, net profit, number of employees etc. European union defines the
small business which has not more than 50 employees and there turnover should be less than
£10m. This report include the difference and similarities between types of entrepreneurial
venture. Along with this, it include characteristic traits and skills of successful entrepreneurs and
many more about entrepreneur and entrepreneurship.
TASK 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Different Types of Entrepreneurial Ventures
Entrepreneurship is the group or collection of activities which are undertaken in the
process of developing, launching and running a business. It is an economical activity done by an
individual or individuals known as entrepreneur. There are various types of entrepreneurial
ventures divided on the basis of scope, size, purpose and their services. It can be said as self
employment. Different types of entrepreneurial ventures are given below:
Small Business Entrepreneurship- It refers to such type of business which is operated by
a small number of employees, also there annual turnover is not so high(Ahmad and et. al., 2019)
. It can include local grocery stores, small boutiques, plumbers, consultants, hairdressers etc. The
turnover of these businesses are decided up to £2 million and employees working in it can be 50.
Entrepreneurs doing small businesses not look at the side of high profits and venture capital
funding. For example: Hello Cleaners is having their business in this segment.
Large Company Entrepreneurship- The companies having turnover between £10
million to £25 million is known as Large company entrepreneurship. These types of companies
work on a huge level with good venture capital. There is no any limit of size, number of

employees, operations etc. Many of large company entrepreneurship are working globally(Al
Omoush and et. al., 2018). Walmart, M&S, Starbucks, Tesco are some of examples of Large
Company Entrepreneurship which are working in the market of global and there are lots of
employees working in it.
Scalable start-up Entrepreneurship- It refers to just a start up but the aim of these types
of start up is to gain high growth and make the company high profitable. In this, entrepreneur
prepare a model of business so that they can invite external capital. They look forward for fast
expansion and huge return of profit. Uber, Facebook, Instagram are the examples of Scalable
Start-up Entrepreneurship.
Typology of Entrepreneurship
New opportunities- Entrepreneurship provide new opportunities to the people living
around them. Large Company Entrepreneurship will provide a huge employment to the people as
they need large number of employees in their organisation.
Lifestyle- These types of economic activities help the poor people living around them and
this will lead in the improvement of their living standard and lifestyle (Zhang 2018). Small
Business Entrepreneurship hire local people for work.
New Ideas- Scalable Start-up Entrepreneurship helps to bring new ideas with startup in
the area and after that, that idea become too popular.
P2 Explore the similarities and differences between entrepreneurial ventures
Following table is showing the differences between various entrepreneurial ventures:
Differences
Basis Small Business
Entrepreneurship
Large Company
Entrepreneurship
Social
Entrepreneurship
Definition Doing business with
small employees and
small capital is known
as small business
entrepreneurship.
Doing business with
the involvement of
huge amount of
external capital and
large number of
employees is known as
Large Company
Business done with the
purpose of
development and
welfare of society is
known as social
entrepreneurship.

Entrepreneurship.
Amount of Capital This entrepreneurship
require low capital.
Large Company need
huge amount of
capital.
Small Capital is
required in Social
entrepreneurship with
innovative ideas
(Fischer and et. al.,
2019).
Purpose These businesses focus
to earn such profit
which is sufficient to
live or through which
entrepreneur can serve
themself and their
family.
These business do
economic activities on
a huge level to
increase revenue and
profits.
Purpose of Social
business
entrepreneurship is not
to earn profit but the
growth of society is
main reason.
Scope It's scope is vast. Scope of large
company is wider.
Scope of social
Business is limited.
Similarities
Basis Small Business
Entrepreneurship
Large Company
Entrepreneurship
Social
Entrepreneurship
Business for Profit It's purpose is to earn
profit by doing
business of products
and services.
It's purpose is to earn
profit by doing various
operations. (Welter
2019)
It's purpose is also to
earn profit with the
growth and
development of
people.
Upliftment This business is
satisfying the society
by making availability
of goods and services.
Large company is
providing employment
to lots of people, in
this way they are
They are providing
services to the people
so that they can
improve their living

making support in
society upliftment.
standard.
Meeting the neds They are meeting the
needs of local
customer by goods and
services.
They are also meeting
the needs of their
clients or customers
These are also meeting
the needs of poor
people by the
development of the
people of concerned
areas.
TASK 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy.
SMEs plays an important role in the economy of UK. In 2018, through a report of
Parliament, it was found that 99% of businesses in the country was made by approx 5.7 million
SMEs (Alexandre-Leclair 2017). And 96% of business in UK was made by 5.4 million micro
businesses. Micro businesses are small scale business in which 0-9 employees can be involved
and a capital of £2 million can be invested.
Illustration 1: Business turnover in UK

Small Business- These types of businesses are impacting the economy at a very low scale
as the revenue is less than £5 million and employees working in it is less than 50. Because of
low revenue, it's impact on economy is on low scale.
Medium Business- Those businesses in which involvement of less than 250 and more
than 50 employees are necessary and whose annual revenue is in between £5 million to £23
million(Patel 2021). These businesses provide a good impact on economy as they are providing
employment to many people also they are making high revenue than small businesses.
Large Business- These types of business firms make a huge revenue as they are
operating all over the world. They are providing employment to more than 250 people and their
annual revenue is always more than £23 million.
Impact of SMEs
Employment Opportunities- SMEs playing an important role in providing employment
opportunities to the people of UK. In a recent report, it was found that SMEs is providing
employment opportunities to approx 16.3 million people, which is almost 60% of all jobs in UK.
Increasing Productivity- SMEs are also result in increase in the production of products
or services. While result in high turnover over year. Across the industry sector of UK, minimum
99.5% accounts are currently under SMEs.
Generate Competition- They are continuously providing new skills, technology and ideas
and making marketplace more dynamic. Entrepreneurs are searching new markets and products
day by day, it result in increase in competition and encourage further innovation across the
country.
Business setup- SMEs are the initial stage of large businesses as it is the starting point of
business. It helps the economy in setting new businesses which leads to the future growth of both
business as well as society (Qian, H., 2017).
Business Growth- Increase in productivity and profitability of business is known as
business growth. Small and medium sized businesses refer to the growth and development of
society because it provides employment, product and services to the people of local society.
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy
For fulfilling social, daily life or business demand, small business and startups plays an
important role. They provide a new direction to the social economy. These small business and

startups are the result of new ideas to earn profit at small level (Amoroso 2018). Almost all of
small businesses and startups are fulfilling the demand of society in exchange of money.
Following are the importances of small business and startups to the growth of social economy:
People getting products quickly- These types of businesses provide daily requirement
products and services available at nearby the areas where people are living. Gift shops, petrol
pump, hotel., salon, grocery store, shoe store, cloth store are essential products for daily
requirement and these are available by small businesses and startups in the locality at normal
prices.
Platforms of selling products and services- Small businesses are the platform where
customer can get product and services (Arfi 2019). High brand attract customers by investing
lots of money on advertisement, while small businesses attract customers on the basis of the
quality and prices of products and services.
Employment Opportunity- As there are lots of small scale businesses and startups are
running in the society, it will provide employment to both skilled and unskilled people to the
local people.
Development of Entrepreneurship- From these small businesses, many of them will
become owner of some brand. Entrepreneurs always have an opportunities to do something large
It provide the opportunity to the owners to develop their business and earn high.
Improving living standard- Small Scale businesses and startups make availability of
products and services at fair prices also it will provide employment to the local people, this will
result in the improvement of living standard of the people of concerned area.
Perfect Competition Market- Nowadays many countries are facing the problem of
capitalism but small businesses and startups creates perfect competition market under which
products and services are available at same prices in the market (Baumol 2021). Sellers are doing
business on the basis of their sales.
TASK 3
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers
Success of any enterprise is not only depend on money invested, it is depend on the skills
of entrepreneur, how they are investing money, how they are doing operations, how they are

making decisions etc. Below mention are the characteristics, traits and skills of successful
entrepreneurs
Characteristics
Adaptability- Ever changing is a characteristic of business. Entrepreneur found many new
opportunities and challenges at every stage. They can make profit only when, they accept the
opportunities and challenges and run business forward continuously (Birkner and et. al., 2018). It
is the first characteristic of a successful entrepreneur that they have to adapt all situations.
Ability to network- It is another important characteristic of a successful entrepreneur that,
they should have ability to connect with various and many people. Meeting new people result in
good knowledge of market. It will also create the relation between them which result in increase
in customers.
Risk Taking- Success of business can’t be determined at the time of starting business. It
is not necessary that the entrepreneur got success. It is very risky to invest in a new business.
Entrepreneur is a risk taker because they take risk of their business.
Traits
Confidence- Entrepreneur should have confidence in themselves and in their business.
Without confidence, they will not be able to explain their products and services in front of others.
In the way of success, a entrepreneur will also face many rejection, but their confidence will help
them to go straight on the way of success.
Innovator- Next trait of a successful entrepreneur is Innovator. An entrepreneur should
have innovative mind, so that they can introduce new ideas, product and services according to
the demand or need of customer. This will help the business to make goodwill and profit.
Market Research- It is necessary for entrepreneur to do market research before starting any
business. Entrepreneur should know about the market factors that may affect their organisation.
Along with this, they should know about the market demand of their product and services which
can be possible by doing market research (Selig 2019).
Skills
Communication- Effective communication is a very important skill that an entrepreneur
should have. As an entrepreneur, they have to put their views and ideas in front of their staff,
customers, suppliers etc. It is necessary to have effective communication so that they can put
their views in an effective way.

Ability to learn- Next important skill that a successful entrepreneur should have, is ability
to learn. An entrepreneur have to face many ups and downs in the life of business(Leckel, 2021).
It is necessary to learn from these ups and downs, so that they can deal with them easily in
future.
Keeping an eye on competitors- One of skill of entrepreneur is that they should aware
about the techniques, strategies of their competitors which help them in beating the competition
and adopting new technologies available in the market.
Zuber and Mohsin Issa are two brothers running a business of petrol filling station in UK
and Europe. In 2001, they started business with a single petrol filling station. And only because
of their skills, characteristics and traits, they become successful entrepreneurs which generates
the revenue of £23.9 billion (approx). Their confidence, innovative minds, networks,
adaptability skills plays an important role in becoming successful entrepreneur.
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind-set
There are lots of characteristics, traits and skills in an entrepreneur which differentiate
them from other people. For assessing the aspects that how entrepreneurial personality reflect
entrepreneurial motivation and mindset, OCEAN model is helpful(Le Dinh and et. al., 2018). It
analyse Big five Personality Traits and it helps to understand people and their behaviour.
Following are the 5 aspects of this model:
Openness- It is the aspect of personality model, under which the mind state of any person
matters. It is said that high openness refers to the creative mind and open to new ideas. Openness
plays an important role in the success of an entrepreneur, as it is important to have creative
thinking according to the desire and need of people to gain more profit.
Conscientiousness- A plan is necessary before any act in business. Conscientiousness
means how an entrepreneur is controlling, regulating and directing their impulses. High
conscientiousness shows how responsible and reliable an entrepreneur is. It is necessary to have
conscientiousness mind of entrepreneur to be a successful entrepreneur.
Extraversion- It means friendliness of any person. High in extraversion means the
person is outgoing and enthusiastic and low extraversion implies low outgoing and and interested
in working(Freiling and et. al., 2019). Extractive people will enjoy with society by taking parts in

different activities. It is necessary to be extraversion in every business but it's level got different
from business to business.
Agreeableness- It means to judge person on the basis of friendly and helpful nature. It
helps the entrepreneur to make friendly nature with society, employees and other people which
help in making goodwill in the society. They can put their interest aside for the interest of other
people.
Neuroticism- Remain stable and balanced in various situations or stability in emotions is
known as neuroticism. Entrepreneur should have high emotional stability power, this will highly
influence the business and personal life as well. In any situation, entrepreneur should calm down
and does not react constantly.
TASK 4
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship
For earning profit, entrepreneurs do business by providing some products or services.
Every business person wants to be a successful entrepreneur and experience & background of
entrepreneur helps them to get more involvement in their work also it guides their business for
moving towards success(Kyvik 2018). Experience and background of successful entrepreneurs
Zuber and Mohsin Issa are given below:
Background of Zuber & Mohsin Issa
Zuber and Mohsin Issa are billionaire, businessmen of Europe. Both the brothers are
founder of Euro Garages. It is a chain of petrol filling stations in United Kingdom and Europe.
Their parents came from Gujarat, India to UK for working in a textile industry and after that they
also owned a petrol station. Their parents intension was to bring the interest of both Issa brothers
towards business. In 2001, Issa brothers buy their first petrol station. That was the first move
towards their success, they did many franchise agreement with Starbucks, KFC and Subway.
Experience of Zuber & Mohsin Issa
In 2001, the Issa brothers started working on a small petrol station in Manchester.
Original cost of that site was £150000. They started their journey from here. Both brothers
divided their work to show perfection. Zuber is responsible for strategy & acquisitions and
Mohsin is responsible to run day to day business (Johannisson 2018). They build a chain of

petrol feeling stations in Europe and United Kingdom, which are a part of EG Group. In 2018, it
was found that EG acquire approx 762 convenience stores in UK. In 2020, Walmart sold
majority stake in Asda to Issa brothers.
CONCLUSION
From this above report it is concluded that, various types of entrepreneurial ventures
plays an important role in global economy. Small businesses not only important for economy but
also they are important for society as well. Also, entrepreneurial ventures are different and same
in many ways. Above mentioned tables are showing difference and similarities between all of
them. Furthermore, it is concluded that Zuber and Mohsin Issa are successful entrepreneurs as
they started working only with a petrol feeling station. Because of their skills, characteristics and
traits, they moved their business towards success and now Walmart sold stakeholders in Asda to
both Issa brothers. Currently the sales of EG Group is approx £23 billion across 10 countries.
EG Group refers to chain of petrol filling station and food outlets in Europe, United States and
Australia founded by Issa brothers who started doing business only from one site and expand the
business to 340 sites in United Kingdom.

REFERENCES
Books and Journal
Ahmad and et. al., 2019. Entrepreneurship as a preferred career option. Education+ Training.
Al Omoush and et. al., 2018. The degree of e-business entrepreneurship and long-term
sustainability: an institutional perspective. Information Systems and e-Business
Management, 16(1), pp.29-56.
Alexandre-Leclair, L., 2017. Social entrepreneurship and social innovation as a tool of women
social inclusion and sustainable heritage preservation: The case of the Sougha
Establishment in UAE. International Journal of Entrepreneurship and Small
Business, 31(3), pp.345-362.
Amoroso, S. and Link, A.N., 2018. Under the AEGIS of knowledge-intensive entrepreneurship:
employment growth and gender of founders among European firms. Small Business
Economics, 50(4), pp.899-915.
Arfi, W.B. and Hikkerova, L., 2019. Corporate entrepreneurship, product innovation, and
knowledge conversion: the role of digital platforms. Small Business Economics, pp.1-
14.
Baumol, W.J., 2021. Economics and entrepreneurship. In World Encyclopedia of
Entrepreneurship. Edward Elgar Publishing.
Birkner and et. al., 2018. Women's entrepreneurship in Europe: Multidimensional research and
case study insights. Springer.
Fischer and et. al., 2019. Universities' institutional settings and academic entrepreneurship:
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pp.243-252.
Freiling and et. al., 2019. Refugee Entrepreneurship A Case-based Topography. Machmilan.
Johannisson, B., 2018. Limits to and prospects of entrepreneurship education in the academic
context. In A research agenda for entrepreneurship education. Edward Elgar
Publishing.
Kyvik, O., 2018. The global mindset: A must for international innovation and
entrepreneurship. International Entrepreneurship and Management Journal, 14(2),
pp.309-327.
Le Dinh and et. al., 2018. Towards a living lab for promoting the digital entrepreneurship
process. International Journal of Entrepreneurship. 22(1). pp.1-17.
Leckel, A., 2021. Open innovation and entrepreneurship. In World Encyclopedia of
Entrepreneurship. Edward Elgar Publishing.
Patel, P.C. and Rietveld, C.A., 2021. Does globalization affect perceptions about
entrepreneurship? The role of economic development. Small Business Economics, pp.1-
18.
Qian, H., 2017. Knowledge base differentiation in urban systems of innovation and
entrepreneurship. Urban Studies, 54(7), pp.1655-1672.
Selig, C.J. and Baltes, G.H., 2019, June. Towards an effective management of corporate
entrepreneurship activities. In 2019 IEEE International Conference on Engineering,
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Welter, F., 2019. The power of words and images: towards talking about and seeing
entrepreneurship and innovation differently. In A research agenda for entrepreneurship
and innovation. Edward Elgar Publishing.

Zhang, T. and Acs, Z., 2018. Age and entrepreneurship: nuances from entrepreneur types and
generation effects. Small Business Economics, 51(4), pp.773-809.