Entrepreneurship: Small Business Management, Skills and Economy

This report provides a comprehensive overview of entrepreneurship and small business management, focusing on different types of entrepreneurial ventures, their relationship with entrepreneurship typology, and the impact of micro and small businesses on the economy. It explores the differences and similarities between various venture sizes and examines the importance of small businesses in developing the social economy. Furthermore, the report identifies the skills and attributes of successful entrepreneurs, assesses how entrepreneurial personality reflects motivation and mindset, and examines how a person's background and past experiences can either hinder or foster entrepreneurship. The analysis includes statistical data and examples to illustrate the significant economic contribution of small and micro businesses, particularly in the United Kingdom.

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Entrepreneurship and small business management

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Table of Contents
Introduction................................................................................................................................3
Part 1:.........................................................................................................................................4
P1: Different types of the entrepreneurial ventures and its relationship with the
entrepreneurship typology:.........................................................................................................4
P2: Explores the differences and similarities among the different types of ventures and
differently sized ventures:..........................................................................................................5
P3: Interpret, assess and present the impact of the micro, as well as small businesses, have on
the economy:..............................................................................................................................9
P4: Importance that small businesses and business start-ups on the development of the social
economy:..................................................................................................................................11
Part 2:.......................................................................................................................................13
P5. By using a suitable example of an entrepreneur, determining the skills and attributes of a
successful entrepreneur:...........................................................................................................13
P6. Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset:.............................................................................................................................14
P7. Examine, using relevant examples, how a person’s background and past experiences can
hinder or foster entrepreneurship:............................................................................................15
Conclusion................................................................................................................................17
Reference List..........................................................................................................................18

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Introduction
The term Entrepreneurship can be defined as a process, which assists in identifying various
sorts of opportunities. These opportunities are then converted to multiple services as well as
products. The conversion takes place by innovatively utilising few ideas along with a creative
composure. It is observed that in recent era development of the economy of a country is
dependent upon the capabilities of an entrepreneur. Entrepreneur helps in developing a
country's standard of living by their innovative products as well as service ranges. They also
help in earning huge revenue amount and thus entrepreneur's help in developing a country's
financial stature. This report will provide emphasis on how an entrepreneur can affect a
country’s growth.

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Part 1:
P1: Different types of the entrepreneurial ventures and its relationship with the
entrepreneurship typology:
Entrepreneurship is defined as activities, which are associated with establishing the new
business. The establishment of the new business is having financial risks along with the profit
generation's hope. An entrepreneur can achieve the successful entrepreneurship if they are
having the capabilities as well as responsibilities for undertaking the risk of the business and
running the business (Morris et al., 2016). Therefore, entrepreneurial ventures are significant
for starting up a new business. Entrepreneurial ventures are mainly of three types, namely,
ventures of smaller profit, ventures for high growth and the lifestyle ventures.
Ventures for smaller profit are not established for earning money of huge amount. Achieving
the growth is considered to be significant for this type of ventures. For instance, Mom and
Pop stores can be considered as a venture for smaller profit. This store is independent,
regulated and ventures owned by the family having the very small number of employees.
This sort of venture of business is owned and maintained by various independent
entrepreneurs and are being associated with the process of decision making as well as have
the capabilities for undertaking risks of a high amount (Kestiing and Gunzel-Jensen, 2015).
Ventures for high growth are considered to be those sorts of entrepreneurial ventures, which
assist the entrepreneur in securing the profit at an optimum amount. This type of venture is
being established to achieve the high amount of fund. This venture has significant concern
with their growth. Ventures for higher growth incorporate manufacturing of unique as well as
innovative products to secure sales of a huge amount (Durufle et al., 2017). Various
entrepreneurs follow the venture for high growth as they aim at having high growth along

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with earning a huge amount of revenues. For instance, techno-entrepreneurs, as well as
corporate entrepreneurs, follow this entrepreneurial venture. Entrepreneurs following this
venture facilitate innovation to generate innovative products (Morris et al., 2016). They also
maintain the business within the environment, which is full of risk.
P2: Explores the differences and similarities among the different types of ventures and
differently sized ventures:
Different ventures of entrepreneurship, which are being discussed in the above section,
possess few differences as well as similarities. Differences, as well as similarities, are being
discussed in the table.
Different types
of attributes
Small Medium Macro
Decision-
making process
Every decision related to
the business is being
taken by the business
owner.
Both the officials at the
higher level as well as
business owners take a
business related decision.
Owners, as well as
officials of various
departments, take
business-related
decisions.
Organisation’s
management
The organisation is
being managed by the
business owner.
Both owners, as well as
higher professionals, are
responsible for business
management.
Business operation is
being managed by the
board of directors, which
include owners as well
as top-level officials.
Organisation’s
customer base
People of the locality Industry Niche Native people
Utilised
processes
The utilisation of
informal processes
Both informal, as well as
formal processes, are
Both informal, as well as
formal processes, are

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being utilised being utilised
Organisational
Planning
Planning is mainly done
for short-term
Both short, as well as
long-term planning, is
done
To gain immediate profit
short-term planning is
conducted and long-term
planning is done for the
long run of the business.
Opportunities
for personal
development
There are few
opportunities for
facilitating the personal
development
Few specific professional
achieve the personal
development
Many professional
achieve personal
development as there is
huge growth in this type
of organisation.
Challenges
faced by
organisations
The significant challenge
confronted by any small
business is maximising,
attracting as well as
retaining the customers.
Challenges like less
profit as well as a lower
flow of cash are also
being faced.
This organisation
confront the problem as
they require hiring large
workforce for enhancing
the productivity of the
organisation. The
problem with initiating
the well being of strategy
for the employees.
Macro organisations face
problem in managing
their employees as there
are more employees in
this organisation.
Table 1: Similarities as well as Differences within the small, medium and macro
organisation
(Source: Alvarez-Garrido and Dushnitsky, 2016)
The table exhibits difference as well as similarities of various venture size. It is being
observed that the process of decision making for small businesses are mainly done by the

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business owners, whereas for the medium and the macro organisation business-related
decisions are being taken by owners, a board of directors as well as top-level officials.
Planning for the short term is being done by all the three type of industries, but it is being
done for various purposes. Planning for long-term is being done by both the medium as well
as the macro organisation as they required earning the profit for a long period. A macro
organisation creates planning for a short term for achieving immediate profit. Considering the
factor of personal development, there are fewer opportunities for the employees of a small
organisation, whereas there are huge chances for the employees of a macro organisation.
Different attributes Private venture Social ventures Public ventures
Distribution of profit Distribution of profit
takes place in
between the investor
as well as in between
the shareholders
Both shareholders,
as well as the
society, achieve the
profit from this type
of venture.
Both shareholders,
as well as the
society, achieve the
profit from this type
of venture.
Value Generation of
corporate value is
observed
Social value is
generated from
social ventures
Both social, as well
as the corporate
value, is being
generated.
Causes for
development of
strategy
Development of
market share value
Addressing as well
as the development
of social objectives
Development of
society’s lifestyle.
Sources of Money Loans are being
taken from various
Donations are being
received from
Money is collected
from tax, penalty as

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banks as well as
issuing the
debentures
various wealthy
foundations.
well as excise duty
Challenges
confronted
The challenges
confronted by this
type of organisation
are to achieve the
profit of huge
amount as well as
they also confront
issues due to the
policy of HR.
The significant
challenged faced by
the social venture is
to enhance the
income as well as
fundraising.
The significant
challenges faced by
the public
organisation that is
by the government is
to provide efficient
services during the
crisis. They also
confront problems in
the effective
management of the
asset and the
organisational
infrastructure.
Main Aim Achieving profit at a
huge amount and
concentrating on
organisational
growth
Excellent delivery of
the services and high
customer satisfaction
The scope of the
social value of the
higher amount
Table 2: Similarity as well as differences of various sorts of business ventures

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(Source: Dutta and Folta, 2016)
It is being observed from the table that private sector organisations only create the corporate
value whereas social organisations create social value and the public organisations create
both values. Considering the development of strategy factor, the private organisation
develops their strategy from enhancing their market share value as well as enhances the
organisational growth. On the other hand, the public organisation develops their strategy for
providing wellness as well as prosperity to the society, and the social organisation develops
their strategy for enhancing the customer satisfaction.
P3: Interpret, assess and present the impact of the micro, as well as small businesses,
have on the economy:
In the United Kingdom, small and micro-enterprise plays a significant role in their economic
development. As stated by the current statistics there are near about 5.2 million small as well
as micro businesses in United Kingdom (Business Insider, 2017). These types of
organisations provide a huge amount of economic contribution in the UK. It has also been
seen that the small and micro organisations contribute about 1.8 trillion pounds to the UK's
economy. This is nearly about 47% of the entire contribution, which is being provided by
private organisations of any nation (Paddock, 2017). In 2008 after the period of recession
there is an increase of small as well as the micro organisation by 47% from the period of
2009 to 2013. Largest UK industry is in the sector of manufacturing, retail and motor
vehicles repairing and 46% of these businesses are incorporated in small businesses. Thus
every three from twenty businesses are falling under the category of the small and micro
organisations. To achieve growth, the significant factor is to incorporate innovation in all
their products and services by these types of organisations. However, it is evident from the
current researchers that near about 37% of small and micro businesses have incorporated

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their activity of innovation that assists in fostering the economic growth as well as establish
fair market competition (Paddock, 2017).
As revealed in a current statistics small as well a micro organisation employ approximately
24.3 million individuals and account for about 60% of total employment made by private
organisations. This number of manpower contributed to 81% of the entire workforce is the
UK. In 2016, nearly 2.5 million organisations registered to pay VAT, which accounts for
45% of entire population. Thus this registration made by the businesses can provide revenue
of huge amount to the government of United Kingdom. According to the report given by
World Bank by 2020 near about 600 millions for opportunities of job can be created with the
help of small organisations as well as by the micro organisations.
Fig 1: Employment provided by small as well as micro organisations
(Source: Padlock, 2017)
The figure given above reflects the image of the employment rate created with the help of
small as well as micro organisations within the various locations of United Kingdom.

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Fig 2: Influence of small and micro organisations
(Source: Business Insider, 2017)
The above figure reflects the clear image regarding the contribution made by the small as
well as micro organisations in the United Kingdom. The first graph exhibits a percentage of
various businesses for a different year. The second graph shows that turnover percentage for
large, small as micro organisations for the different year. The third image exhibits that
employment percentage created by small, large as well as micro organisations.
P4: Importance that small businesses and business start-ups on the development of the
social economy:
The term Social entrepreneurship is considered as the procedure to utilise various techniques
by various start-ups organisation for developing, funding as well as implementing various
solutions, which are having high relation with cultural, social as well as environmental
problems. Social Economy of a country incorporates various sorts of organisations. These

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organisations are non-profit organisations, co-operative organisations, organisations based on
charity and various social enterprises. It has also been observed that numerous organisations
are inaugurating every month, which helps in the social economy growth. Numerous social
organisations are small in size as they are not having adequate fund as well as the potential
and the capabilities for generating (Dees, 2017). However, it is being observed that the small
organisations are contributing more towards the economy. Small organisations employ more
employees, reduces the rate of crime by employing the individuals as well as contributions
for GDP. Various small, as well as social organisations, are the source of income for the new
entrepreneurs and they also assist the people by employing them. Thus the individual’s can
maintain their family.